Abrams Capital
David Abrams founded Abrams Capital Management in 1999 after working as a research analyst at Seth Klarman's Baupost Group. He brought Baupost's deep value philosophy with him — a focus on margin of safety, patience, and willingness to hold cash when opportunities are scarce. Abrams Capital is one of the most secretive and successful hedge funds in the country, rarely appearing in the press and doing no marketing to investors. The fund has a long waitlist and has been largely closed to new capital for years.
Abrams's investment approach emphasizes identifying fundamentally sound businesses or assets that are trading at large discounts to intrinsic value, often due to complexity, temporary problems, or market neglect. The fund will hold significant cash positions when compelling opportunities are unavailable. Long holding periods of 5–10 years are common. Abrams has generated exceptional long-term returns with very low correlation to the broader market, making the fund highly sought after by endowments and family offices.
We look for situations where the facts are much better than the price suggests. Often the best opportunities are the ones where something has gone wrong and the market has overreacted.
— Abrams Capital, Abrams Capital Management