David Abrams Top 5 Positions Represent 80% Of The Total Portfolio

Core Insights - The recent 13F filing from Abrams Capital Management reveals a portfolio valued at $6.17 billion, heavily concentrated in five main holdings that constitute nearly 80% of total assets [1] - David Abrams emphasizes long-term compounding over diversification, maintaining a focus on durable, cash-rich businesses [1][7] Company Summaries - Loar Holdings Inc. (LOAR): The largest position, valued at $2.56 billion across 32 million shares, represents over 40% of total assets. Loar is characterized by mission-critical products and recurring revenue, indicating strong conviction in its growth potential [2] - Lithia Motors Inc. (LAD): The second-largest holding with 2.49 million shares worth $787 million, accounting for 12.8% of assets. Abrams slightly increased this position, reflecting confidence in the auto retail sector's resilience and cash flow [3] - Asbury Automotive Group (ABG): Valued at $527 million with 2.16 million shares, representing 8.54% of assets. Abrams's modest increase in this holding supports his belief in auto-dealer consolidation and operational efficiency [4] - Alphabet Inc. Class A (GOOGL): A $516 million stake provides selective exposure to the digital economy, fitting Abrams's quality-at-a-reasonable-price strategy. This position serves as a growth counterweight to more cyclical investments [5] - Tempur Sealy International Inc. (TPX): Rounding out the top five with a value of $493 million, accounting for 8% of assets. The company is favored for its recurring consumer demand and strong brand power [6] Conclusion - The Q3 2025 filing highlights Abrams's strategy of focusing on a few exceptional businesses with durable cash flows and disciplined management, aiming to buy below intrinsic value and hold for long-term growth [7]