Abrams Capital Q1 2026: 22% in Auto Dealers, 40% in Aerospace

Abrams Capital Management's Q1 2026 13F is one of the most disciplined concentrated value books at scale in the US institutional universe. David Abrams runs $4.64 billion across approximately a dozen meaningful positions. The top 10 absorbs 99.97% of reported AUM — there is no diversification tail. Position one is Loar Holdings (LOAR — aerospace components manufacturer) at 39.59% of portfolio. The second-largest concentration is auto-dealer exposure: Lithia Motors (LAD) at 13.41% and Asbury Automotive Group (ABG) at 9.08% sum to 22.49% in just two retail-auto names. Alphabet (GOOGL) at 11.57% is the only mega-cap tech position, and even that is held at single-digit weight versus its S&P 500 weight.

Abrams Capital was founded in 1999 as a successor to Seth Klarman's Baupost Group philosophy — concentrated value investing with deep margin-of-safety underwriting. The book has historically shown high conviction in a small number of names, with position weights often above 10-20% in single positions. The Q1 2026 13F is the cleanest current expression of that philosophy.

The book at a glance

$4.64 billion total reported AUM. Approximately 12 meaningful positions. WhaleScore 80.50 — placing Abrams in the elite smart-money tier. The structure is what a true concentrated value book looks like: not 500 names with a top 10 weighted at 25%, but 10-12 names with a top 5 weighted near 75%.

The LOAR position at 39.59%

Loar Holdings (LOAR) is a small-cap aerospace components manufacturer that IPO'd in April 2024 at $28 per share and has subsequently traded between $60 and $100+. Loar designs and manufactures specialized parts for defense, commercial aerospace, and space markets. The thesis is high-margin, low-cyclicality industrial components with structural pricing power tied to defense-spending durability.

Abrams Capital's 39.59% portfolio weight at $1.84 billion implies approximately 25-30 million LOAR shares — a substantial stake in a company with a sub-$8 billion market cap. This is the highest single-name concentration in the book by a wide margin. The position has been building since the 2024 IPO; the Q1 2026 weight reflects both share-price appreciation and active position-sizing decisions.

The auto-dealer pair: LAD + ABG

Two of the top 5 positions are retail auto-dealer rollups:

• Lithia Motors (LAD) at $621.9 million / 13.41% — Largest US franchised auto-dealer rollup. Mid-cap stock with a multi-year buyback-and-acquisition consolidation thesis.
• Asbury Automotive Group (ABG) at $421.2 million / 9.08% — Second-tier auto-dealer rollup with similar consolidation playbook but smaller scale.

Combined exposure: 22.49% of the entire portfolio in retail auto-dealer rollups. The thesis is the franchised-dealer consolidation cycle — historically a high-margin, slow-moving cash-flow business where the largest operators win through scale economics and tuck-in M&A.

Both LAD and ABG have traded between 8x and 12x forward earnings through 2025-2026 — well below the broader market multiple. Abrams's concentration reflects a deep-value view that the consolidation cycle continues to compound book value at attractive rates.

The mega-cap exposure

Two mega-cap tech positions appear in the top 10:

• Alphabet (GOOGL) at $536.5 million / 11.57% — Roughly 2.5x the S&P 500 index weight for the GOOGL share class. This is a value-on-growth call: Alphabet's free-cash-flow durability plus the recent multiple compression positioned the stock as a margin-of-safety name in 2025.
• Meta Platforms (META) at $186.0 million / 4.01% — Slightly above index weight. Smaller conviction than GOOGL.

The mega-cap exposure is concentrated on Alphabet's specifically. No NVDA, no MSFT, no AAPL. The fund's selectivity inside mega-cap tech is itself an active call.

The other top positions

• Somnigroup International (SGI) at $428.6 million / 9.24% — Mattress and bedding retail. Deep-value rollup thesis.
• Coupang (CPNG) at $245.8 million / 5.30% — Korean e-commerce leader. International growth value angle.
• UHAL/B (U-Haul Class B non-voting) at $145.2 million / 3.13% — Self-storage and moving services. Classic value-discipline holdover position.
• Cusip G96629103 at $209.5 million / 4.52% — Foreign-domiciled ADR.

The top 10 vs the rest

99.97% of AUM sits in the top 10. There is no long-tail diversification. Abrams Capital is structurally not a diversified active manager — it is a high-conviction value-discipline book where every position above the threshold has been deliberately sized.

AUM trajectory

Abrams Capital's reported 13F AUM has been stable through 2024-2026. The fund's mandate caps inflows; the AUM growth has been driven by position appreciation rather than fund subscriptions. This is consistent with the disciplined-value mandate.

What this 13F means for institutional readers

1. The LOAR position is the central thesis. 39.59% portfolio weight on a single small-cap aerospace name means Abrams's view of the defense-aerospace consolidation cycle is the most important factor in fund performance. Any LOAR-specific operational stumble translates directly to fund returns.
2. The auto-dealer pair is structurally one bet. LAD + ABG at combined 22.49% expresses a single thesis: franchised-dealer consolidation continues to deliver attractive ROIC through M&A. Reading them as two independent picks would miss the integrated business logic.
3. The selectivity within mega-cap tech is the value-discipline signal. Abrams owns GOOGL and META but not NVDA, MSFT, AAPL. The choices reflect explicit value-and-quality screens rather than benchmark tracking.

What to track

1. Loar Holdings Q1 fiscal 2026 earnings. LOAR reports in early May 2026. The defense-aerospace order book and gross margin commentary will determine whether Abrams's 39.59% concentration thesis remains durable.
2. Auto-dealer consolidation pace. LAD and ABG announce M&A periodically; any acceleration in tuck-in acquisitions confirms the consolidation thesis.
3. Abrams Capital's Q2 2026 13F (due August 14, 2026). Watch whether LOAR position weight compresses (suggesting partial monetization at gains) or holds (suggesting continued conviction). Track via the institutional signals feed.
4. Any new top-10 entries. When Abrams adds a name into the top 10 — historically rare — the new position carries high-conviction value-discipline signal.

Abrams Capital's Q1 2026 13F is one of the most disciplined concentrated value books at scale in US institutional investing. 99.97% of AUM in approximately a dozen positions, single-name conviction at 39.59%, and a deliberate selectivity inside mega-cap tech. For more on reading concentrated value-discipline 13Fs and identifying high-conviction signals in small position lists, see our explainer hub.

Source: SEC Form 13F-HR filed by Abrams Capital Management, L.P. (CIK 0001358706) for the period ending 2026-03-31; available via EDGAR — Abrams Capital filer index.