| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.9% | 6.2% | 3.7% |
| 2025 |
|---|
| 3.7% |
The Pabrai Wagons Fund employs a concentrated value strategy, trading at a P/E of 11 versus the S&P 500's 30, with only 4% overlap with the index. Manager Mohnish Pabrai follows Warren Buffett's principles, believing exceptional performance comes from a few great investments held for very long periods. The fund circles the wagons around seven key buckets: metallurgical coal businesses with exceptional reserves and low-cost positions, TAV Airports with 10-14% passenger growth guidance and high operating leverage, U.S. homebuilders benefiting from a 4-7 million home deficit, auto dealerships with recurring revenues despite EV concerns, offshore oil services with supply-demand tightness, and Edelweiss Financial with multiple spinoff catalysts. The strategy focuses on businesses trading at fractions of replacement cost with strong capital allocation policies. After underperforming during the Magnificent-7 rally, the fund has outperformed the S&P 500 since March 2025, positioning for long-term outperformance through patient capital deployment in undervalued assets.
The fund seeks exceptional investment performance through a concentrated portfolio of undervalued businesses trading at fractions of replacement cost, with enlightened managements focused on capital allocation through buybacks, dividends, and spinoffs.
The fund is seeing some green shoots and has outperformed the S&P 500 since March 1, 2025. The fund's mission is to beat the S&P 500 over the long-run through its focus on undervalued businesses with buybacks, dividends and spinoffs.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 12 2026 | 2025 Q4 | AAPL, AMR, AMZN, AN, GOOGL, HMT.L, META, MSFT, NVDA, PHM, RIG, TOL, TSLA | Airports, Auto Dealers, Buybacks, Coal, global, Homebuilders, Oil Services, value | TAVHL TI | The fund focuses on businesses with enlightened managements that buy back their stock at compelling valuations. Three businesses in the portfolio that fit this mold… |
| Oct 16 2025 | 2025 Q3 | BRK/A, FI, IBKR, PSH, SCHW, SF, SOFI | Buybacks, Margin Of Safety, Replacement cost, Spin-Offs, Value Investing |
AMR US RIG US EDEL IN TAVHL TI |
The Pabrai Wagons Fund focuses on concentrated value investing inspired by Buffett and Munger, circling around high-conviction holdings with long runways. Its portfolio includes undervalued,… |
| Aug 7 2025 | 2025 Q2 | BRK/A, EDEL IN, RYSAS TI, TAVHL TI | Capital Allocation, Compounding, Concentration, Margin Of Safety, Value Investing | - | The letter outlines a highly concentrated, value-driven investment approach built around a small number of high-conviction wagons, with roughly 94% of capital allocated across seven… |
| Apr 5 2025 | 2025 Q1 | BRK/A, EDEL IN, RYSAS TI, TAVHL TI | - | - | - |
| Jan 27 2025 | 2024 Q4 | EDEL IN, RYSAS TI, TAVHL TI | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AirportsTAV operates 15 airports in 8 countries with guidance of 10-14% annual passenger growth across its airports, which may continue for decades. TAV has high operating leverage where if passengers grow 12%, cash flow may grow at more than 2x that. The fund believes it is led by an exceptional management team and is very cheap compared to other global airport operators. |
Passenger Growth Operating Leverage Infrastructure Cash Flow Global Operations |
Auto DealersCarvana represents a major portfolio holding that has grown 100x from 2022 lows, demonstrating the power of digitally native auto dealing with proprietary technology for pricing, logistics, inspections, and reconditioning workflows. |
Digital Technology Logistics Pricing Scale | |
BuybacksShare repurchases in 2024 and 2025 hit consecutive records as companies raced to meet Tokyo Stock Exchange capital efficiency mandates. Buybacks were a primary driver of the market's 20% climb in the first half of FY2025. |
Share Repurchases Capital Efficiency TSE Mandates Shareholder Returns Records | |
CoalCoal consumption rose 7-8% in 2025, first increase in years, driven by data center demand and higher gas prices. Multiple plant closures delayed or cancelled as grid reliability concerns mount. Asia continues expanding coal capacity despite transition promises. |
Thermal Data Centers Asia Utilities | |
HomebuildersDespite near-term housing market challenges from affordability issues and buyer/seller strikes, there is structural underinvestment in housing relative to demographic needs. US builds same number of homes today as 1960 despite 160 million more people. Fund sees long-term bullish opportunity in companies like Toll Brothers and Champion Homes as housing market rebounds. |
Affordability Demographics Structural Shortage Millennials Manufactured | |
Oil ServicesCore Laboratories delivered sequential revenue growth propelled by strong global demand for its proprietary services and products. The company strengthened its financial position by reducing leverage to a nine-year low while expanding internationally through acquisitions, positioning for long-term growth in energy development cycles. |
Oil Services Oilfield Services Energy Trading Oil Equipment Completion | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
ValueThe manager continues to find attractive value opportunities despite expensive markets, purchasing undervalued companies like Centene, GlaxoSmithKline, Carrefour and PayPal trading at low multiples with strong fundamentals. |
Undervalued Low Multiples Contrarian Opportunistic |
| 2025 Q2 |
ConcentrationFive companies now represent roughly 30% of the S&P 500's market cap. The top 10 exceed 40%—the highest concentration in 50 years. Nearly $340 billion flowed into U.S. deals, yet it was packed into the fewest deals of the decade, with nearly half the capital concentrated in a few dozen deals over $500 million. |
Market Capital Risk Deals Venture |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 12, 2026 | Fund Letters | Mohnish Pabrai | TAVHL TI | TAV Havalimanları Holding A.Ş. (TAV Airports) | Industrials | Airports & Air Services | Bull | Borsa Istanbul | Acquisitions, Airtravel, cashflow, Currency, infrastructure, Operatingleverage, Passenger, valuation | Login |
| Oct 16, 2025 | Fund Letters | Mohnish Pabrai | AMR US | Alpha Metallurgical Resources Inc. | Materials | Coal & Consumable Fuels | Bull | NYSE | buybacks, cashflow, Commodities, Mining, Steel, Value | Login |
| Oct 16, 2025 | Fund Letters | Mohnish Pabrai | RIG US | Transocean Ltd. | Energy | Oil & Gas Drilling | Bull | NYSE | Cyclicals, energy, leverage, Offshore, oil, Rigs, Value | Login |
| Oct 16, 2025 | Fund Letters | Mohnish Pabrai | EDEL IN | Edelweiss Financial Services Ltd. | Other | Diversified Financials | Bull | National Stock Exchange of India | Alternatives, financials, growth, India, spin-off, Value | Login |
| Oct 16, 2025 | Fund Letters | Mohnish Pabrai | TAVHL TI | TAV Airports Holding AS | Industrials | Transportation Infrastructure | Bull | Borsa Istanbul | Airports, Emerging markets, growth, infrastructure, leverage, Travel | Login |
| TICKER | COMMENTARY |
|---|---|
| AAPL | AAPL shares rose in 4Q25 following better-than-feared iPhone 17 sell-through trends and stronger Services momentum. The company reported that early adoption of its on-device AI features exceeded internal expectations, particularly in North America and Europe, where attach rates for Pro models remained elevated. Wearables also returned to growth, helped by new health features and improved battery life. |
| AMZN | This quarter, we took profits in our hyperscaler portfolio companies (Amazon and Google) and increased our position in NVIDIA. |
| AN | Other poor performers included the auto dealers - Group 1 Automotive (down 10.0%) and Autonation (down 5.6%), as well as Universal Music (down 8.6%) There was no disturbing news we can point to. They all remain large portfolio positions. |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| META | On January 9, Meta Platforms unveiled a new agreement with Vistra—the largest generator of competitive electricity in the United States—as well as with TerraPower and Oklo. The announcement builds on Meta's agreement last year with Constellation Energy and positions the company to become one of the largest corporate purchasers of nuclear-generated electricity in the United States. |
| MSFT | MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. |
| NVDA | Capital spending from Google, Microsoft, Amazon, Meta, OpenAI, and more have led to Nvidia becoming the Rrst 5 trillion market cap company. |
| PHM | PulteGroup, in the homebuilding industry, struggled due to slowing orders and margin pressures despite a slight decrease in mortgage rates. We continue to hold PulteGroup in the Fund. |
| TOL | Our homebuilding companies were the weakest performers this quarter with Builders FirstSource (BLDR) and Toll Brothers (TOL), both landing on our list of bottom 5 detractors. We remain bullish on the long-term prospects for the homebuilding sector as we believe there is a shortage of housing and these companies trade for large discounts to their intrinsic values. We added to our position in both companies this quarter. |
| TSLA | Under the previous system, companies that produced only electric vehicles—most notably Tesla—generated large quantities of credits that could then be sold to manufacturers falling short of their EV production targets, allowing them to avoid regulatory penalties. |
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