In the second quarter of 2026, David Abrams's Abrams Capital Management boosted its portfolio value to $5.48 billion while maintaining a highly concentrated book of just 10 holdings. The fund's conviction is most evident in its top position, aerospace manufacturer Loar Group (LOAR), which now represents a staggering 47.15% of the portfolio. This massive allocation underscores a significant bet on the aerospace sector. The remainder of the portfolio shows a strong focus on the automotive retail industry, with Lithia Motors (LAD) and Asbury Automotive Group (ABG) listed as the second and fifth largest holdings, respectively.
The most significant change during the quarter was a high-signal reduction in the fund's stake in Alphabet (GOOGL). Abrams sold nearly 500,000 shares, a reduction of about 27%, trimming the position's weight in the portfolio from over 11% to just under 9%. Despite this substantial sale, the tech giant remains the firm's third-largest holding, indicating a potential rebalancing or profit-taking move rather than a complete loss of faith. This trim continues a pattern of reducing the GOOGL stake over several recent quarters.
Abrams Capital's latest filing showcases a value-oriented strategy marked by intense concentration and long-term holds. The top five positions, including Loar, Lithia, Alphabet, Somnigroup International (SGI), and Asbury Automotive, now account for approximately 85% of the fund's total reported assets. This heavy concentration in a few key names, particularly the outsized position in Loar, demonstrates a high-conviction approach to investing, a style for which the Seth Klarman protégé is well-known.