Author Topic: David Abrams -- Abrams Capital  (Read 26274 times)

TeddyLampert

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David Abrams -- Abrams Capital
« on: June 02, 2014, 08:00:24 PM »
Anyone else see this article today in the WSJ about David Abrams?

http://online.wsj.com/articles/hedge-fund-worlds-one-man-cash-machine-1401747769#printMode

I thought it was an interesting fund but the article does not talk really talk about investment process.

If anyone knows the following, it would be great to hear from you!

- Does he actively short
- What's the gross and net long/short exposure
- How does he hedge (if different from the above answer)
- How much is international (and thus, not reported in the 13F, so we are left thinking the fund is more concentrated than it is?)
- What is the process of analyzing an investment idea before it goes into the portfolio
- What is the average holding period
- Average cash holdings in a "normal" environment (today it's a whopping 40%)


 
I am disappointed that we did not deliver a better result." - Teddy Lampert


peter1234

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Re: David Abrams -- Abrams Capital
« Reply #1 on: June 03, 2014, 12:38:03 AM »
Very interesting, have not heard of him before. He seems to be a protege of Seth Klarman and also wrote in 'Klarman's' 6th Edition of Security Analysis in Part 7 "The Great Illusion of the Stock Market and the Future of Value Investing".

My (un) educated guess to your questions is that his style is close to Seth Klarman. However, his 13F sure seems easier to understand...
- don't think he shorts, otherwise he would not have been down 40% in 2008
- his 'hedges' are probably special situations
- don't know where the majority of his assets are invested. His 13F shows 1.3b. WJS says he manages 8b, of which 40% cash, leaving 4.8b invested of which only 1/3 or 1.3b appears on the 13F (see the similarities to Klarman   ;) )
- he was on a panel with Seth Klarman and Howard Marks, so an allocation to distressed debt seems like worth a guess
- as for international: probably not so much directly with only 3 analysts

Anyone with real info please chime in.


 :)
« Last Edit: June 03, 2014, 12:39:45 AM by peter1234 »

indythinker85

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Re: David Abrams -- Abrams Capital
« Reply #2 on: June 03, 2014, 05:19:45 AM »
Was about to post this, very interesting profile. Agree he sounds a lot like Klarman. Can anyone find more info about him on internet? Am pretty good at searching but not finding much.

mankap

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Re: David Abrams -- Abrams Capital
« Reply #3 on: June 03, 2014, 06:14:45 AM »
I read the article today morning. He is also big on Freddie and Fannie.
Lot of value investors are big on Freddie and Fannie

wellmont

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Re: David Abrams -- Abrams Capital
« Reply #4 on: June 03, 2014, 07:10:35 AM »
he wrote something for the latest edition of Security Analysis. Worth checking out.

nikhil25

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Re: David Abrams -- Abrams Capital
« Reply #5 on: June 03, 2014, 07:11:45 AM »
http://www.rbcpa.com/The_Graham_+_Dodd_Luncheon_Symposium_Transcript_20081002.pdf

Transcript of a lunch symposium hosted by Columbia in 2008. The panel includes Bruce Berkowitz, Seth Klarmann, Howard Marks and David Abrams.

ni-co

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Re: David Abrams -- Abrams Capital
« Reply #6 on: June 03, 2014, 08:25:32 AM »
I stumbled upon him through an investment in EGL which was a classical Greenblatt spinoff situation a nicely profitable business, which was hidden behind a huge one time goodwill impairment charge.

At the time, he seemed to be the only hedge fund investing in it and he bought 10% of the company. He bought better than me and sold better than me (he made 100% within 12 months). Since then, I follow his 13-Fs. :D

MrB

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Re: David Abrams -- Abrams Capital
« Reply #7 on: June 03, 2014, 08:31:20 AM »
He's good. Probably classify him as investing in undervalued long term growth stories for the most part. There will generally be a 2nd level story to his investments, so worth looking into what he is buying.

MrB

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Re: David Abrams -- Abrams Capital
« Reply #8 on: June 03, 2014, 08:36:21 AM »
SA article

muscleman

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Re: David Abrams -- Abrams Capital
« Reply #9 on: June 03, 2014, 08:54:20 AM »
Very interesting, have not heard of him before. He seems to be a protege of Seth Klarman and also wrote in 'Klarman's' 6th Edition of Security Analysis in Part 7 "The Great Illusion of the Stock Market and the Future of Value Investing".

My (un) educated guess to your questions is that his style is close to Seth Klarman. However, his 13F sure seems easier to understand...
- don't think he shorts, otherwise he would not have been down 40% in 2008
- his 'hedges' are probably special situations
- don't know where the majority of his assets are invested. His 13F shows 1.3b. WJS says he manages 8b, of which 40% cash, leaving 4.8b invested of which only 1/3 or 1.3b appears on the 13F (see the similarities to Klarman   ;) )
- he was on a panel with Seth Klarman and Howard Marks, so an allocation to distressed debt seems like worth a guess
- as for international: probably not so much directly with only 3 analysts

Anyone with real info please chime in.


 :)

He has 3 funds. Is it possible that you only found the 13F for one fund? Or is it aggregated?
I am muslceman. I have more muscle than brain!