Abrams Capital 13F: 5 Best Stocks To Buy

In this piece, we will take a look at Abrams Capital’s 13F portfolio and the five best stocks to buy. If you want to learn more about the value investor and his firm’s approach, check out Abrams Capital 13F: 10 Best Stocks To Buy.

5. Energy Transfer LP (NYSE:ET)

Abrams Capital’s Q3 2023 Investment: $250 million

Energy Transfer LP (NYSE:ET) is a petroleum products midstream company that transports natural gas, crude oil, and associated products. A slowdown in gas prices in 2023 after the 2022 Russian invasion of Ukraine has led to the firm not beating analyst EPS estimates in any of its four latest quarters. However, the stock is still rated Strong Buy on average.

By the end of this year’s June quarter, 34 out of the 910 hedge funds part of Insider Monkey’s database had bought Energy Transfer LP (NYSE:ET)’s shares. David Abrams’ Abrams Capital Management owned the biggest stake among these which was worth $226 million.

4. Meta Platforms, Inc. (NASDAQ:META)

Abrams Capital’s Q3 2023 Investment: $278 million

Meta Platforms, Inc. (NASDAQ:META) is one of the best known companies in the world due to its social media platforms. It is the only stock in our list of David Abrams’s top stocks that saw the investor trim down his stake by 19% during Q3. Meta Platforms, Inc. (NASDAQ:META)’s shares are rated Strong Buy on average, and analysts have set an average share price target of $370.

In the previous quarter, 225 out of the 910 hedge funds profiled by Insider Monkey were the firm’s investors. Meta Platforms, Inc. (NASDAQ:META)’s largest hedge fund shareholder was Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital due to its $3 billion stake.

3. Alphabet Inc. (NASDAQ:GOOG)

Abrams Capital’s Q3 2023 Investment: $303 million

Alphabet Inc. (NASDAQ:GOOG) is another global technology conglomerate. The firm’s stock was a winner in mid November after an October inflation report undershot estimates and the Treasury market stabilized. This led to Alphabet Inc. (NASDAQ:GOOG)’s shares gaining 1.34% on the market, with the stock up by 51% year to date.

After digging through 910 hedge funds for their Q2 2023 shareholdings, Insider Monkey discovered 152 Alphabet Inc. (NASDAQ:GOOG) shareholders. Ken Fisher’s Fisher Asset Management owned the biggest stake among these, which was worth $5.1 billion and came via 42 million shares.

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

Abrams Capital’s Q3 2023 Investment: $485 million

Asbury Automotive Group, Inc. (NYSE:ABG) is an American used and new car retailer headquartered in Duluth, Georgia. The firm’s third quarter earnings report saw its revenue and net income drop by 5% and 17% annually. However, it made use of economic turmoil and brought a multi billion dollar car dealer in its portfolio.

During 2023’s June quarter, 27 out of the 910 hedge funds part of Insider Monkey’s database were the firm’s shareholders. Asbury Automotive Group, Inc. (NYSE:ABG)’s largest hedge fund investor back then was David Abrams’ Abrams Capital Management as it owned 2.1 million shares that were worth $506 million.

1. Lithia Motors, Inc. (NYSE:LAD)

Abrams Capital’s Q3 2023 Investment: $706 million

Lithia Motors, Inc. (NYSE:LAD) is another American car retailer with a presence in the U.S. and Canada. Like other car dealers, high inflation and dropping purchasing power have hit the firm’s financials as it has missed analyst EPS estimates in three out of its four latest quarters. However, the shares are up by 36% year to date, after they bled 31% in 2022.

As of Q2 2023 end, 33 out of the 910 hedge funds polled by Insider Monkey were Lithia Motors, Inc. (NYSE:LAD)’s investors. David Abrams’ Abrams Capital Management owned the largest stake out of these, which was worth $714 million.

Disclosure: None. You can also take a look at Morgan Stanley’s 15 Stock Picks for 2023 and 10 Best Performing Healthcare ETFs in 2023.

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