David Abrams ( Trades , Portfolio ) of Boston-based Abrams Capital Management is a new guru. He formerly held a position at Seth Klarman (Trades, Portfolio)'s Baupost Group, and since founding his own fund in 1998, has returned about an annualized 15% for his clients. Abrams is a classic value investor who worked in merger arbitrage before his hedge fund days.
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Microsoft ( MSFT )
Abrams purchased 3,420,000 shares of Microsoft in the first quarter, amounting to 11.1% of his portfolio. This makes it the third-largest position in his holdings, behind Western Union ( WU ) (22.5%) and AIG ( AIG ) (18.8%).
Microsoft's share price averaged $38 in the first quarter, and has moved up 9% since.
Microsoft Corp was founded in 1975. It was incorporated in the State of Washington. Microsoft Corp has a market cap of $337.19 billion; its shares were traded at around $40.82 with a P/E ratio of 15.40 and P/S ratio of 4.10. The dividend yield of Microsoft Corp stocks is 2.60%. Microsoft Corp had an annual average earnings growth of 14.80% over the past 10 years. GuruFocus rated Microsoft Corp the business predictability rank of 3.5-star.
Barnes & Noble ( BKS )
Abrams added 2,115,229 shares of Barnes and Noble in the first quarter, equal to 3.54% of the company's shares outstanding and making the company 3.5% of his portfolio.
Barnes and Noble had a share price average of $17 per share in the first quarter, and has increased by 14% since.
Barnes & Noble Inc. was incorporated in Delaware in 1986. Barnes & Noble Inc. has a market cap of $1.2 billion; its shares were traded at around $20.06 with and P/S ratio of 0.20.
Increase - J.C. Penney ( JCP )
Abrams increased his slight position in J.C. Penney by 50% in the first quarter, adding 500,000 shares at an average price of $7 to his stake started the previous quarter of 1 million shares purchased at an average price of $8. This holding represents 1% of his portfolio after the increase. The price has since moved up to around $8.68 on Wednesday.
J. C. Penney Company Inc. was incorporated in Delaware in 2002. J.C. Penney Co. Inc. has a market cap of $2.65 billion; its shares were traded at around $8.69 with a P/S ratio of 0.20.
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This article first appeared on GuruFocus .