Perhaps best known for his winning bid of $650,100 with Guy Spier for a charity lunch with Warrant Buffett in 2007, Mohnish Pabrai is the Managing Partner of Pabrai Investment Funds, an investment group modeled after the original 1950s Buffett Partnerships. Since its inception in 1999, Pabrai Funds with over $360 million in assets under management (AUM) have delivered annualized returns of over 28% (net to investors).
He has been favorably profiled by Forbes and Barron's, has made guest appearances on CNBC and Bloomberg TV and Radio, and has been called by Motley Fool as “Today’s greatest rising investor.” Also, he is well known for his 2007 book, “The Dhandho Investor: The Low-Risk Value Method to High Returns”.
Pabrai maintains a concentrated portfolio of smaller companies generally less than a half a billion dollars in market capitalization.
His funds bought International Coal Group (ICO) in the quarter ended March 2010 at an average price of $4.18, and added another 30,000 shares at $4.70 in the quarter ended September 2010. With the recent acquisition of ICO by Arch Coal (ACI) for $14.60 a share on May 2nd, investors in Pabrai’s hedge fund stand to reap an outstanding 249% return on their investment in ICO stock about 15 months ago.
Pabrai is a very savvy investor, and while he works only for investors in his hedge funds, a savvy investor can ride his ‘coattails’ with a knowledge of his holdings, or better still use the list of his holdings as a starting point to conduct her own due diligence, and reap the rewards as many did with ICO recently.
The following is a brief summary of the top ten holding in the Pabrai Investment Funds, based on the latest 13-F filing as of December 31st of 2010.
(as of 12/31/10 at time of filing)
Percent Outstanding Shares Controlled By Donald Smith & Co.
$ 79 million
$ 52 million
Brookfield Infrastructure Partners
$ 37 million
$ 26 million
$ 23 million
$ 20 million
International Coal Group
$ 19 million
Goldman Sachs Group Inc
$ 19 million
Horsehead Holding Corp.
$ 18 million
Air Transport Services Group
$ 17 million
Pabrai’s largest holdings include BPO and POT. Also, his latest 13-F filing for the December 2010 quarter shows that he added one new position in the quarter, namely BIP, and also added to his prior positions in POT and PKX. Besides, he also reduced his exposure in Harvest Natural Resources (HNR), ATSG and CRESF.PK in the quarter.
Credit: Historical fundamentals including operating metrics and stock ownership information were derived using I-Metrix® by Edgar Online®, Zacks Investment Research, Thomson Reuters and Briefing.com. The information and data is believed to be accurate, but no guarantees or representations are made.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.