The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
The Pabrai Wagons ETF returned -1.79% in Q2 2026 versus +15.20% for the S&P 500, bringing YTD returns to +12.12% versus +10.21% for the index. The fund maintains a concentrated portfolio with zero S&P 500 overlap, positioning itself as the 'Un-S&P 500' by investing in mispriced, unloved corners of global markets. The top six portfolio buckets representing 79% of assets include: offshore oil services (19%), Indian financial services (14%), Mark Leonard software complex (14%), metallurgical coal (14%), Turkish logistics/real estate (9%), and Turkish airports (9%). Key positions include Transocean, Warrior Met Coal, Edelweiss Financial Services, TAV Airports, and Constellation Software spin-offs. The manager believes offshore drillships trade at significant discounts to replacement value with no new supply, met coal businesses have irreplaceable reserves despite investor hatred, and the AI-driven software selloff created opportunities in quality compounders. The fund follows Berkshire Hathaway's philosophy that exceptional performance comes from a dozen truly good decisions held for very long periods, not frequent trading.
The Pabrai Wagons ETF invests in irrationally mispriced, unloved, and overlooked corners of global equity markets with zero overlap to the S&P 500, following a concentrated 'Circle the Wagons' approach of holding exceptional businesses with wide moats, great managers, and long runways for extended periods.
The manager maintains a constructive long-term outlook focused on holding concentrated positions in what he believes are exceptional businesses trading at significant discounts to intrinsic value. The fund continues to follow the 'Circle the Wagons' philosophy of not cutting flowers and watering weeds, holding onto great businesses with wide moats, great managers, and long runways. The manager expects these positions to compound over many years, citing Berkshire Hathaway's example where only about a dozen truly good decisions over 58 years drove satisfactory results.
As of Jul 4, 2026
Mohnish Pabrai serves as Portfolio Manager, bringing over two decades of investment management experience since founding Pabrai Investment Funds in 1999. Born in Mumbai, India in 1964, he is an Indian-American businessman, investor, and philanthropist who manages over $1 billion in assets across his investment vehicles. He has an estimated net worth of $150 million as of 2026 and previously founded TransTech, Inc., an IT consulting firm that grew to over $20 million in revenue before its sale in 2000. From inception in 1999 through December 2023, his investment funds delivered an annualized gain of 12.6% versus 7.2% for the S&P 500. He is the author of two books on value investing: The Dhandho Investor and Mosaic: Perspectives on Investing, and founder of The Dakshana Foundation focusing on poverty alleviation through education.
We apply core investing principles to invest in high-quality businesses led by high-quality people. Our mission is to help our investors compound their capital at high rates of return. The fund follows a value investing philosophy inspired by Warren Buffett and Charlie Munger, focusing on circling the wagons around high-potential businesses with wide moats, strong management, and long growth runways, purchased at attractive valuations with a margin of safety. We believe the holy grail of investing is to buy capital-light businesses which have high returns on equity, great balance sheets and very long runways - all while paying no more than a bit more than tangible book value.
Lead Portfolio Manager
High Conviction Bullish
Market Conviction
The fund demonstrates high conviction through extreme concentration: top 10 holdings represent 69% of the portfolio, top 6 buckets represent 79%, and the manager explicitly names and sizes all major positions. The letter provides specific thesis details for each bucket including valuation metrics, catalysts, and timeframes. The 'Circle the Wagons' philosophy is explicitly stated as holding great businesses forever, and the manager cites Berkshire's example of a dozen good decisions over 58 years. Position sizing is clear (e.g., offshore drilling 19%, met coal 14%), and the manager expresses strong views on specific names like Transocean, Alpha, and TAV. The explanation states these are 'exceptional businesses' with 'wide moats' that will 'compound for years to come.' This is not quite extreme conviction (0.90+) because the fund holds 20+ positions across multiple geographies and sectors, but it is clearly high conviction given the concentration and specificity.
Growth Outlook
Market outlook remains above average conviction: Pabrai Wagons ETF delivered 44% returns by investing in unloved global markets with zero S&P 500 overlap. Core positions include metallurgical coal miners, offshore drillers tradin...
Risk Appetite
Risk appetite posture is above average conviction: Pabrai Wagons ETF delivered 44% returns by investing in unloved global markets with zero S&P 500 overlap. Core positions include metallurgical coal miners, offshore drillers tradin...
Capital Deployment
The letter provides no evidence of cash level changes or significant new deployment. The fund appears fully invested with 79% in six core buckets and top 10 holdings at 69%. The manager emphasizes holding current positions ('do not cut the flowers and water the weeds,' 'hold on to the great businesses forever') rather than deploying new capital. The negative quarterly return (-1.79%) and lack of discussion about adding positions suggests minimal net deployment activity. This scores near neutral as it represents steady-state positioning rather than active deployment or de-risking.
Forward Guidance
Forward guidance signal: Pabrai Wagons ETF delivered 44% returns by investing in unloved global markets with zero S&P 500 overlap. Core positions include metallurgical coal miners, offshore drillers tradin...
Language Signal
The letter uses predominantly positive language around current holdings: 'exceptional businesses,' 'great managers,' 'wide moats,' 'significant discount to replacement value,' 'irrationally mispriced,' 'will continue to compound for years to come.' However, this is balanced by cautious language around the S&P 500 and Mag 7 ('parabolic capex,' 'fiercely competing,' 'winners no longer easy to figure out'). The net balance tilts positive given the focus on opportunities, but the manager is selective rather than broadly bullish.
Perceived Risk
Perceived risk level is evaluated as moderate conviction. Pabrai Wagons ETF delivered 44% returns by investing in unloved global markets with zero S&P 500 overlap. Core positions include metallurgical coal miners, offshore drillers tradin...
Opportunity Density
The manager sees abundant opportunities in 'irrationally mispriced, unloved and overlooked corners of global equity markets.' The letter details specific opportunities across six distinct buckets (offshore drilling, met coal, Indian financials, vertical software, Turkish logistics, Turkish airports) representing 79% of the portfolio. Each bucket is described with multiple attractive characteristics: offshore drilling trades at 'significant discount to replacement value,' met coal has 'some of the best reserves on the planet,' Edelweiss spin-offs are undervalued, Constellation spin-offs are 'hammered' by AI selloff but will benefit, Reysas trades below liquidation value, and TAV is 'very cheap compared to other global airport operators.' The breadth and specificity of opportunities across geographies and sectors indicates a rich opportunity set.
Time Horizon
The manager explicitly states the intention to 'hold on to the great businesses forever' and cites Berkshire Hathaway's 58-year track record as the model. The 'Circle the Wagons' philosophy emphasizes 'never interrupt compounding unnecessarily' and holding a few great investments for 'a very long time.' The letter states 'we believe exceptional investment performance is usually the product of only a few great investments held for a very long time.' Specific catalysts are mentioned (drillship day rates, Edelweiss spin-offs over 5-6 years, Alpha buybacks over the next decade) but these are framed as multi-year to decade-plus timeframes. The manager describes met coal as having 'no meaningful alternative for several decades' and expects Constellation spin-offs to 'compound for years to come.' This is not quite permanent capital (0.90+) as it's a publicly-traded ETF with daily liquidity, but the stated philosophy and evidence point to an extremely long time horizon.
Top Conviction Themes
Key Catalysts
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