In the second quarter of 2014, Abrams Capital Management added four stocks to its portfolio while increasing its position in another three. The hedge fund with about $8 billion in AUM is run by David Abrams, a protege of Seth Klarman.
Abrams Capital Management – Increased positions
For the fourth consecutive quarter, Western Union remains the largest holdings for Abrams and the company increased it’s position by 4,065,000 shares or 23.41%. With the purchase, The Western Union Company (NYSE:WU) now represents 26.31% of the aggregate portfolio. The fund’s largest increase in its position by percentage was with Barnes & Noble, Inc. (NYSE:BKS) where it increased its position by 94.51% and now stands at 4,114,398 shares in the portfolio and now represents 6.64% of the fund’s value of $1,411,970,000. Lastly, Abrams added to its position in Global Eagle Entertainment Inc (NASDAQ:ENT) which provides in-flight video content, e-commerce, and information services for the airline industry worldwide by purchasing an additional 4.342,536 shares an increase of 44.75% in its position that now stands at 3.81% of the total portfolio.
Prescience Partners returned 6.75% for the second quarter, underperforming the S&P 500's 8.55% return but coming out ahead of the Barclay Equity Long/ Short Index's 2.62% return. However, for the first six months of the year, Prescience is up 30.66%, doubling the S&P's 15.25% return and smashing the Barclay Equity Long/ Short Index's 9.27% return. Read More
Abrams Capital Management – New Purchases
The fund did not reduce its positions or sell out any positions in the quarter but did open positions in four stocks and now has a portfolio of 14 stocks after buying: Navient Corp (NASDAQ:NAVI), Opus Bank (NASDAQ:OPB), Rayonier Inc. (NYSE:RYN), and Gentiva Health Services, Inc. (NASDAQ:GTIV).
The biggest purchase was of Navient Corp (NASDAQ:NAVI) which provides financial products and services focusing on the education sector. Abrams picked up 5,170,518 shares at a price of $17.71 and now accounts for 6.49% of the portfolio.
Next, the fund purchased 2,270,265 shares in Opus Bank (NASDAQ:OPB) at a price of $27.36 and represents 4.40% of the fund. The commercial bank provides banking products, services, and solutions to small and mid-sized commercial businesses, entrepreneurs, real estate investors, professionals, and consumers primarily in California and Washington State.
Rayonier Inc. (NYSE:RYN) now represents 2.32% of the portfolio after a purchase of 920,710 shares at $35.55. The company sells and develops real estate as well as offering timberland management. It also sells cellulose fibers in Australia, New Zealand, and the United States.
Abram’s final purchase and one that now represents just over 1% of the total portfolio was the pick-up of 975,170 shares of Gentiva Health Services, Inc. (NASDAQ:GTIV) at $15.06. The company provides home health, hospice, and community care services in the United States.
After today’s filing and in addition to the company’s holdings in The Western Union Company (NYSE:WU) there are only three other companies that make up a double digit percentage of the funds holdings. They are American International Group Inc (NYSE:AIG) at 18.34%, Wells Fargo & Co (NYSE:WFC) at 10.31% and Microsoft Corporation (NASDAQ:MSFT) at 10.10%.