ABRAMS CAPITAL MANAGEMENT, L.P.

Abrams Capital Management's $4.64B March 2026 portfolio documents a painful quarter rooted in a single sector cluster: auto retail and insurance-related financial services. Four positions that together represent 71.3% of the book — LOAR Holdings ($1.84B, 39.6%), Lithia Motors ($622M, 13.4%), SomniGroup ($429M, 9.2%), and Asbury Automotive ($421M, 9.1%) — all fell in value by between $80M and $343M while share counts remained flat. The declines are not trims — they are mark-to-market losses in positions the fund did not touch. LOAR Holdings, an insurance-brokerage and financial services platform, dropped $343M in value and remains the fund's largest position. The AUM decline from $5.67B to $4.64B — roughly $1B — maps almost entirely to these four positions. Communication Services exposure (Alphabet, $537M, reduced $63M; Meta, $186M) held up better, and Coupang ($246M) and Willis Towers Watson ($210M) were largely unchanged. The fund eliminated its Energy Transfer LP position (sold $101M), an energy infrastructure bet that no longer fit the consumer-focused mandate. The portfolio's sector bias — Consumer Cyclical at 80% of the book — is both the source of its Q1 underperformance and the defining characteristic of its investment process. This is a concentrated thematic bet on consumer spending, auto retail, and insurance distribution, and Q1 produced the kind of correlated drawdown that concentrated consumer mandates are structurally exposed to.