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New Guru David Abrams' 2 New Stocks and 1 Increase

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.

With a value of $1.26 billion, Abrams' long portfolio holds just 13 stocks. Two positions were new in the first quarter: Microsoft Corp ( MSFT ) and Barnes & Noble ( BKS ).

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%).

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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.

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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.

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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.

For more David Abrams (Trades, Portfolio) stocks, visit his portfolio here. Not a Premium Member of GuruFocus?Try it free for 7 days here! About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .

This article first appeared on GuruFocus .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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