Highly Regarded Value Investor’s New Stock Moves

AMERCO (NASDAQ:UHAL)

– Shares Held By Abrams Capital (as of December 31): 102,860

– Value of Holding (as of December 31): $38.01 Million

AMERCO (NASDAQ:UHAL) made its debut in Abrams Capital’s portfolio during the fourth quarter. Shares of the do-it-yourself moving and storage operator have remained range-bound since the beginning of 2016, and are currently trading up by 4.36% for 2017. Despite being a fairly large company (its market cap is over $7 billion), coverage of AMERCO (NASDAQ:UHAL)’s stock by leading analysts and research firms on Wall Street has been next to nil, which makes it hard for retail investors to evaluate the stock. However, since a noted value investor like Abrams Capital, which is known for its due diligence, has initiated a stake in the company and the stock is currently trading at a forward P/E of only 16.92, that might provide some conviction to any retail investors who have been sitting on the sidelines to go ahead and buy it. On February 13, the company declared a quarterly dividend of $1 per share, in-line with its previous payout, which translates into a forward yield of 1.04%. Though ownership of AMERCO among the investors in our database declined by three to 19 during the fourth quarter, the aggregate value of their AMERCO holdings rose by 23% during that time to $418.31 million.

Quality Care Properties Inc (NYSE:QCP)

– Shares Held By Abrams Capital (as of December 31): 4.46 Million

– Value of Holding (as of December 31): $69.11 Million

Quality Care Properties Inc (NYSE:QCP) is a healthcare REIT that was spun off from HCP, Inc. (NYSE:HCP) during the fourth quarter, the same period in which Abrams Capital initiated its stake in the company. Immediately after Quality Care Properties Inc (NYSE:QCP) started trading as an independent entity, its stock was hammered by bears amid concerns over litigation involving the REIT’s main tenant, HCR ManorCare. However, the stock has recovered since then and is currently trading up by 22% in 2017. 14 other hedge funds that we follow took stakes in QCP during the fourth quarter, collectively owning 20% of the stock’s float.

We’ll check out how Abrams Capital traded Willis Towers Watson and Time Warner Inc during Q4 on the final page of this article.