Mohnish Pabrai is a value investor who has built a Buffett-inspired fund that he manages called Dalal Street. Dalal Street recently reported to the SEC the holdings of its $339.5 million portfolio, which I have outlined below.
Anyone interested in learning more about Mohnish Pabrai's investment style should pick up his book: "The Dhando Invesotor: The Low-Risk Value Method to High Returns."
Dalal Street increased the share count of its Chesapeake Energy (NYSE:CHK) investment by 2% in the first quarter of 2013. Chesapeake Energy now accounts for 19% of this highly focused portfolio. Chesapeake has had a turbulent ride over the past year but is up 22.42% YTD. The company has a market cap of $13.49 billion and yields a 1.74% dividend.
The only other addition in the first quarter of 2013 was an increase in the fund's newly revealed holding of General Motors Warrants, as noted above. This is an interesting trade because at the end of 2012, Dalal Street only reported a $60 million holding of the common shares and, in the first quarter of 2013, we find that the fund sold out of that position to increase the warrants. Based on the updated report, Dalal Street's GM investment actually changed from $75.5 million (common and warrants) to $69.9 million (warrants only) at the end of March. General Motors is up 8.98% YTD.
The fund had no changes in its holdings of Bank of America (NYSE:BAC) and Horsehead Holdings Group (NASDAQ:ZINC). Bank of America was the fund's largest holding as of 3/31/13 and was worth $91.3 million on that date. Bank of America is up 11.46% YTD and currently trades for $13.05 per share.
Horsehead is an interesting investment for the fund because it is the only company Dalal Street holds that has a market cap below $1 billion. Horsehead is a basic material company with a market cap of $501.8 million. Zinc shares are up 11.46% YTD.
In addition to the GM Common mentioned above, the only other two sales Dalal Street made in the first quarter of 2013 were in Citigroup (NYSE:C) and Goldman Sachs (NYSE:GS). Dalal Street sold 14% of its shares in Citigroup, which brought the holding down to 20% of the portfolio's value, or $69 million. Dalal also sold 28% of its Goldman Shares, which brought the position down from 8% of the portfolio, at the end of the year, to 6% or $20.8 million at the end of the first quarter. Citigroup and Goldman Sachs are up 23.29% and 17.28% YTD respectively.
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Below, I have provided a spreadsheet of the portfolio that visually highlights the moves of Dalal Street in the first quarter of 2013. What are your thoughts? Do you think Mohnish's fund can continue to grow throughout 2013?