99% of Billionaire Abrams’ Portfolio is in These 11 Stocks

3. Asbury Automotive Group, Inc. (NYSE:ABG)

Abrams Capital Management’s Q3 2024 Investment: $503.08 Million

Percentage of Abrams Capital Management’s Portfolio: 8.07%

Number of Hedge Fund Holders: 30

Asbury Automotive Group, Inc. (NYSE:ABG) is one of the best-performing stocks in Abrams Capital Management’s portfolio, going by the 17.26% year-to-date gain. The outperformance comes from the company establishing itself as a leader in providing various automotive products and services. It provides new and used car parts, repair and maintenance services.

After a few quarters of rising inventories and interest rates, new cars in the U.S. are now more affordable than they have been in three years. Lower interest rates are expected to help even more. Despite some challenges, Asbury Automotive Group, Inc. (NYSE:ABG) is doing well in a better business environment.

On October 29, 2024, Asbury Automotive Group, Inc. (NYSE:ABG) reported strong third-quarter results with a 16% increase in revenue to $4.2 billion and adjusted earnings per share (EPS) of $6.35. However, Hurricane Helene and stop sale orders for some Toyota, Lexus, and BMW models hurt their profits, reducing EPS by about $0.39 to $0.43. While used car profits went up, new car profits went down. During the quarter, Asbury bought back 400,000 shares for $89 million, showing their commitment to returning value to shareholders. The company is well-positioned for future growth due to its focus on increasing profits and smart capital use.

At the end of the third quarter of 2024, 30 hedge funds held stakes in Asbury Automotive Group Inc. (NYSE:ABG), with a total investment value of $1.44 billion.