After ten years of working with Seth Klarman, who once called him “smart as a whip,” David Abrams launched Abrams Capital Management in 1999. Abrams, a history graduate, claims that his investment job began accidentally but added that he didn’t want to pursue any other employment after that. Abrams is a proponent of value investing. As long as stock is trading at a discount, he doesn’t care if it has growth possibilities. His stock investments have a three to five-year time horizon, and he targets returns of at least 15%. A tiny group of investment experts work for Abrams Capital Management, and David Abrams personally approves each trade. The fund has made investments in a wide range of financial instruments, including debt securities, distressed securities, private equity, and domestic and foreign equity securities. He favors companies with strong pricing power and where management owns the company’s stock in addition to those with strong fundamental analyses.
Insider Monkey looks at the list of top 10 stock picks from Abrams’ 2022 portfolio. Citi analyst John Yu downgraded Coupang, Inc. from Neutral to Buy with a price objective of $15, down from $29 in its Q1 results, Coupang exceeded expected EPS by $0.05 but fell short of revenue forecasts by $133 million. Texas-based Energy Transfer LP is a corporation that transports LNG and propane. Its quarterly dividend of $0.20 per share was paid to shareholders of record from May 9 to May 19. As of June 21, its annual dividend yield was 7.71 percent. One of the securities in Abrams’ portfolio that has been kept for the longest is AMERCO, where the holding dates back as far as five years. The company’s operating cash flow increased by 30% to $1.79 billion during the current fiscal year. With an EPS of $2.66, Willis Towers Watson Public Limited Company outperformed earnings forecasts in the first quarter by a margin of $0.16. With 4.8 million shares held, First Eagle Investment Management is in the first place. The social media company Meta Platforms, Inc., formerly known as Facebook, runs WhatsApp, Instagram, and Facebook. The business declared its intentions to switch to Metaverse, a social media platform linked to virtual reality, in 2021. For more details, click David Abrams’ 2022 Portfolio: Top 10 Stock Picks.
