We recently compiled a list of the 99% of Billionaire Abrams’ Portfolio is in These 11 Stocks. In this article, we are going to take a look at where Camping World Holdings, Inc. (NYSE:CWH) stands against the other stocks in David Abrams’ portfolio.
Founded in 1999 by David Abrams, Abrams Capital Management is an investment fund that strives to generate value by leveraging opportunistic and value-oriented investment strategies. Likewise, its portfolio is well-skewed to navigate any challenging macro environment, as it mainly focuses on value investments.
In addition, Abrams Capital Management’s portfolio focuses on diversifying its holdings across various asset classes. Stocks, debt, and distressed securities are some of its top asset classes. Diversification and value investments are some of the strategies that have allowed Abrams to perform better than other hedge fund managers, based on an annualized net return of 15% over the past 15 years.
Abrams Capital Management is primarily invested in the Services sector in the equity markets, which accounts for 25% of its holdings, with Technology stocks accounting for about 11,% followed in third by Basic Materials stocks. The strategic distribution affirms the hedge fund’s focus on sectors with higher prospects for value growth that align with long-term investment philosophy.
In the third quarter, Abrams made significant changes, trimming stakes in some holdings while increasing in others. The hedge fund made no new purchases or sales, reduced holdings in 3 stocks, and did not add to any existing positions. The top 10 holdings constitute 97.75% of the portfolio. The investments are concentrated in seven key sectors. The changes reflect the calculated approach in response to changing macroeconomics.
Our Methodology
To compile the list of billionaire Abrams’ portfolio we scanned Abrams Capital Management’s third quarter portfolio, focusing on the biggest holdings based on investment size. Upon analyzing the stocks, focusing on why they stand out, we ranked them in ascending order based on Abrams Capital Management’s equity stake.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A well lit Airstream RV parked in the outdoors, highlighting the recreational vehicles offered by the company.
Camping World Holdings, Inc. (NYSE:CWH)
Abrams Capital Management’s Q3 2024 Investment: $75.30 Million
Percentage of Abrams Capital Management’s Portfolio: 1.2%
Number of Hedge Fund Holders: 21
Camping World Holdings, Inc. (NYSE:CWH) sells RVs and related products. Abrams Capital Management owns $75.30 million worth of its stock, which is 1.2% of their portfolio. The company has faced challenges in its RV rental business due to high interest rates. Despite this, it remains a market leader with nearly 11% of the new and used RV market, thanks to strong sales and strategic growth.
Camping World Holdings, Inc. (NYSE:CWH) had mixed results in the third quarter on October 28, 2024. Revenue dropped slightly by 0.3% to $1.7 billion, but this was better than the $1.64 billion analysts expected. Sales of new and used items in the same stores grew for the first time in 10 quarters. However, net income fell by 73.9% to $8.1 million because gross profit decreased by $24.6 million.
Even as Camping World Holdings, Inc. (NYSE:CWH) faces challenging market conditions, it expects growth in the RV market. It’s pushing for strategic acquisitions to unlock new growth opportunities and strengthen its revenue base.
On November 15, Camping World Holdings, Inc. agreed to buy seven dealerships from Lazydays Holdings, Inc. in Arizona, Tennessee, Wisconsin, Iowa, Indiana, Oregon, and Washington. The deal is expected to cost between $10 million and $20 million after financing. This purchase fits Camping World’s goals and helps them grow their market share.
Overall CWH ranks 11th on our list of stocks in David Abrams’ portfolio. While we acknowledge the potential of CWH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CWH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.