| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.87% | -1.79% | 12.12% |
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.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 2 2026 | 2026 Q2 | AMR, CSU.TO, HCC, KSPI.L, LMN.TO, NE, RIG, TAVHL.IS, TOI.AS, VAL | Concentration, emerging markets, energy, financials, global, small caps, Spin-Offs, value | - | Pabrai Wagons ETF delivered +12.12% YTD through Q2 2026, maintaining zero S&P 500 overlap through concentrated positions in unloved global markets. The fund circles the wagons around six core buckets: offshore drilling, met coal, Indian financials, vertical software compounders, and Turkish infrastructure. Manager Mohnish Pabrai believes these exceptional businesses with wide moats trade at significant discounts and will compound for decades. |
| Apr 28 2026 | 2026 Q1 | AMR, CSU.TO, EDEL.NS, HCC, NE, RIG, RYSAS.IS, TAVHL.IS, VAL | Airports, Coal, emerging markets, energy, Logistics, Offshore Drilling, software, value | - | 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 trading below replacement cost, and vertical software companies positioned to benefit from AI despite recent selloffs. The concentrated approach targets exceptional businesses with wide moats and superior capital allocation. |
| 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 | Concentrated value fund trading at 11x P/E versus S&P 500's 30x, focused on undervalued businesses with strong capital allocation. Key positions include metallurgical coal miners, TAV Airports, homebuilders, auto dealers, and offshore oil services trading at fractions of replacement cost. Recent outperformance since March 2025 after initial underperformance during Magnificent-7 rally. |
| Oct 16 2025 | 2025 Q3 | AMR, AN, HMC.T, META, MSFT, PHM, RIG, TOL, WMC | Airports, Auto Dealers, Buybacks, Coal, Homebuilders, small caps, undervalued, value |
AMR US RIG US EDEL IN TAVHL TI |
Concentrated value fund trading at 11x P/E versus S&P 500's 30x, focused on undervalued businesses with strong capital return policies. Portfolio includes metallurgical coal, airports, homebuilders, and car dealerships trading at discounts to replacement cost. Recent outperformance after initial underperformance suggests potential inflection point in value versus growth dynamics. |
| Aug 7 2025 | 2025 Q2 | - | - | - | |
| Apr 5 2025 | 2025 Q1 | - | - | - | |
| Jan 27 2025 | 2024 Q4 | - | - | - | Pabrai Wagons Fund delivered 10.92% YTD returns in 2024 with a concentrated global portfolio including Edelweiss, TAV Airports, and other holdings across Turkey, India, and USA. Document quality is severely compromised, preventing extraction of investment thesis, outlook, or manager commentary beyond basic performance and holdings data. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
Offshore DrillingThe fund holds three positions in U.S. offshore oil services, representing 19% of the portfolio. Offshore accounts for one-third of global oil and gas production with breakeven levels far below fracking. Drillships are complex and expensive with no new supply in the pipeline, and shares trade at a significant discount to replacement value. At $1 million day rates, the manager believes free cash flow for Transocean, Valaris, and Noble could surge dramatically to over $1 billion per year each. |
Offshore Drilling Oil Services Drillships Transocean Valaris |
Metallurgical CoalThe fund is invested in a handful of metallurgical coal businesses near the bottom quartile of the cost curve, led by exceptional managers with some of the best met coal reserves on the planet. Coal is hated by investors, but the manager believes there will be no meaningful alternative to using met coal to produce steel for several decades. Alpha is returning 100% of capital via buybacks, having reduced its fully diluted share count by 32% over the last four years, and the manager expects over 70% of shares to be retired over the next decade. |
Metallurgical Coal Steel Buybacks Alpha | |
Vertical SoftwareThe fund holds positions in Constellation Software and its spin-offs Topicus and Lumine, representing 14% of the portfolio. These companies operate a buy-and-build flywheel of vertical market software assets. The recent AI-driven software selloff has hammered these stocks, but the manager believes Mr. Market is wrong and that AI will instead benefit incumbents like Constellation, and they will continue to compound for years to come. |
Vertical Software Constellation Software AI Compounders | |
IndiaThe fund has 14% exposure to Indian financial services through Edelweiss Financial Services and Nuvama Wealth Management. Edelweiss is a holding company with various financial services subsidiaries that the manager believes have many tailwinds. Over the next 5-6 years, Edelweiss plans to spin off at least four different subsidiaries, each expected to be valued at $0.5-$1.5 billion, while the current market cap is approximately $1.2 billion. |
India Financial Services Spin-offs Edelweiss | |
TurkeyThe fund has approximately 18% exposure to Turkish businesses including TAV Airports, Reysas REIT, and Gimat. TAV operates 15 airports in 8 countries with high operating leverage, and the manager believes it is very cheap compared to other global airport operators. Reysas is a logistics business owning 62% of Reysas REIT with over 12 million sq.ft of Grade A warehouses, led by a father-son duo the manager views as exceptional operators. The manager believes Reysas REIT's liquidation value is well over $2.5 billion versus a market value of approximately $1.3 billion. |
Turkey Airports Logistics Real Estate | |
AirportsTAV Airports represents 9% of the portfolio and operates 15 airports in 8 countries. The manager believes TAV has high operating leverage where 6-9% annual passenger growth may translate to cash flow growth at more than 2x that rate. TAV has many related business units including duty free, ground handling, and airport software that the manager believes are worth more than the entire market cap of TAV. In 2021, TAV invested $120 million of equity in Almaty International Airport in Kazakhstan, which generated $112 million in EBITDA in 2025. |
Airports TAV Kazakhstan Operating Leverage | |
Spin-offsThe fund is positioned in Edelweiss Financial Services, which plans to spin off at least four different subsidiaries over the next 5-6 years. The first spin-off will be their 100% owned alternative assets business, expected to be valued at $1-$1.5 billion at IPO, while Edelweiss' current market cap is approximately $1.2 billion. The manager also holds Constellation Software spin-offs Topicus and Lumine. |
Spin-offs Edelweiss Constellation Software Value Unlocking | |
AIThe manager discusses AI primarily in the context of the Mag 7 concentration in the S&P 500 and its impact on software valuations. The Mag 7 trades at a P/E of 35 and their capex has gone parabolic as they fiercely compete in AI, with winners no longer easy to figure out. The recent AI-driven software selloff has hammered stocks like Constellation Software and its spin-offs, but the manager believes AI will benefit these incumbents rather than harm them. |
AI Mag 7 Software Valuations | |
| 2026 Q1 |
Metallurgical CoalThe fund is invested in metallurgical coal businesses that are near the bottom quartile of the cost curve with exceptional managers and the best met coal reserves globally. The manager believes there will be no meaningful alternative to using met coal to produce steel for several decades, despite the industry being hated by investors. |
Coal Steel Mining Energy Commodities |
Offshore DrillingThe fund has three positions in U.S. offshore oil services, believing that supply-demand tightness can yield very high day rates for drillships. New drillships would cost over $1 billion and take 5+ years to deliver, creating significant barriers to new supply while shares trade at discounts to replacement value. |
Oil Services Drilling Energy Offshore Supply | |
BuybacksAlpha Metallurgical Resources is returning 100% of capital to investors via buybacks, having reduced its fully diluted share count by 32% over four years. The manager expects Alpha could retire over 70% of shares outstanding over the next decade before switching to dividends. |
Capital Allocation Share Repurchases Returns Value | |
AirportsTAV operates 15 airports in 8 countries with high operating leverage where passenger growth of 6-9% annually may drive cash flow growth at more than 2x that rate. The manager believes TAV is very cheap compared to other global airport operators and has business units worth more than the entire market cap. |
Infrastructure Travel Operating Leverage Airports | |
AIThe recent AI-driven software selloff has hammered vertical market software stocks. The manager believes the market is wrong and that AI will instead benefit incumbents like Constellation Software and its spin-offs, allowing them to continue compounding for years to come. |
Software Technology Vertical Markets Compounding | |
LogisticsReysas is a logistics business that owns 62% of Reysas REIT with over 12 million sq.ft of Grade A warehouses in Turkey. The company has strong recurring revenues across multiple market-leading businesses including being the largest warehouse owner and rooftop solar generator in Turkey. |
Warehouses Real Estate Recurring Revenue Turkey | |
| 2025 Q4 |
Metallurgical CoalThe fund is invested in metallurgical coal businesses near the bottom quartile of the cost curve with exceptional management and best-in-class reserves. Coal is hated by investors but there will be no meaningful alternative to using met coal to produce steel for several decades. |
Coal Steel Mining Commodities Energy |
BuybacksThe fund focuses on undervalued businesses with enlightened managements buying back stock at compelling valuations. Three businesses in the portfolio have committed to return capital to shareholders through buybacks or dividends. |
Capital Return Share Repurchases Value Management | |
Auto DealersTraditional car dealerships are hated by the market due to concerns with electric vehicles, but the fund believes these concerns are overblown. These are great businesses with high-margin recurring revenues trading at low multiples. |
Automotive Retail Electric Vehicles Recurring Revenue | |
HomebuildersThe fund is invested in U.S. homebuilders who have morphed into asset-light, efficient factories with shrewd capital return policies. The U.S. is structurally underbuilt with a deficit of 4-7 million homes. |
Housing Construction Real Estate Demographics | |
AirportsTAV operates 15 airports in 8 countries with guidance of 10-14% annual passenger growth across its airports. The company has high operating leverage and is very cheap compared to other global airport operators. |
Infrastructure Travel Transportation Turkey | |
Oil ServicesThe fund has a position in U.S. offshore oil services. Offshore accounts for one-third of global oil and gas production and breaks even at levels far below fracking. Supply-demand tightness can yield very high day rates. |
Energy Offshore Oil Services Drilling | |
| 2025 Q3 |
BuybacksThe fund focuses on undervalued businesses with shrewd capital return policies through buybacks. Management teams are buying back stock at compelling valuations, which the manager believes could deliver higher returns than the Magnificent 7. Three businesses in the portfolio have committed to return capital to shareholders through buybacks or dividends. |
Capital Return Share Repurchases Value Creation Management Shareholder Returns |
Metallurgical CoalThe fund is invested in metallurgical coal businesses near the bottom quartile of the cost curve with exceptional managers and some of the best met coal reserves globally. Coal is hated by investors, but the manager believes there will be no meaningful alternative to using met coal to produce steel for several decades. |
Steel Production Cost Curve Reserves Energy Industrial | |
ValueThe fund trades at a trailing P/E of 11 compared to the S&P 500's P/E of 30. The manager focuses on buying businesses at a fraction of replacement cost and believes the holy grail is capital-light businesses with high returns on equity at no more than a bit more than tangible book value. |
P/E Ratio Replacement Cost Book Value Undervalued Margin of Safety | |
HomebuildersThe fund is invested in U.S. homebuilders who have morphed into asset-light, efficient factories with shrewd capital return policies. The U.S. is structurally underbuilt with a deficit of 4-7 million homes, and high-quality scale homebuilders have unique advantages to capture a growing portion of this growing pie. |
Housing Deficit Asset Light Construction Real Estate Demographics | |
Auto DealersTraditional car dealerships are hated by the market due to concerns with electric vehicles, but the manager believes these concerns are overblown. These are great businesses with high-margin recurring revenues that will continue for decades, trading at low multiples and being bought back. |
Electric Vehicles Recurring Revenue Service Parts Automotive | |
AirportsTAV operates 15 airports in 8 countries with guidance of 10-14% annual passenger growth that may continue for decades. TAV has high operating leverage where 12% passenger growth may generate cash flow growth at more than 2x that rate, led by exceptional management and very cheap compared to other global airport operators. |
Passenger Growth Operating Leverage Infrastructure Travel Cash Flow |
| 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 |
|---|---|
| RIG | We have 3 positions in U.S. offshore oil services. Offshore accounts for 1/3 of global oil and gas production and breaks even at levels far below fracking and other methods. Drillships are complex and expensive. There is no new supply in the pipeline. In our view, shares are trading at a significant discount to replacement value. A new 8th Gen drillship, if built, is unlikely to be delivered in less than 5 years and would cost over $1 billion with a 50% upfront deposit. To justify that capex, in our view, operators would require day rates to be over $1 million for 20+ years, more than 2x day rates today. Given the operating leverage, we believe that at $1 million day rates, Transocean, Valaris, and Noble's free cash flow could surge dramatically, and be well over $1 billion per year. |
| HCC | We are invested in a handful of metallurgical (met) coal businesses. All of these are near the bottom quartile of the cost curve and are led by exceptional managers. All three of these businesses have some of the best met coal reserves on the planet. Coal is a four-letter word and the industry is hated by investors. We believe there will be no meaningful alternative to using met coal to produce steel for several decades. |
| TAVHL.IS | TAV operates 15 airports in 8 countries. TAV has high operating leverage: in our view, if passengers grow 6-9% annually, cash flow may grow at more than 2x that. We believe it is led by an exceptional management team and is very cheap compared to other global airport operators. TAV has many related business units including ATU (duty free), Havas (ground handling), TAV Technologies (airport software), etc. In our view, these business units are worth more than the entire market cap of TAV. In 2021, TAV purchased 85% of Almaty International Airport in Kazakhstan. They invested $120 million of equity in 2021. TAV's share of Almaty EBITDA was $112 million in 2025. |
| KSPI.L | In 2021, TAV purchased 85% of Almaty International Airport in Kazakhstan. They invested $120 million of equity in 2021. TAV's share of Almaty EBITDA was $112 million in 2025. |
| LMN.TO | Constellation Software is a very high-quality compounder founded by Mark Leonard. It operates a buy and build flywheel of vertical market software (VMS) assets. The recent AI-driven software selloff has hammered these stocks. We believe Mr. Market is wrong, and AI will instead benefit incumbents like Constellation and its spin-offs, Topicus and Lumine, and they will continue to compound for years to come. |
| TOI.AS | Constellation Software is a very high-quality compounder founded by Mark Leonard. It operates a buy and build flywheel of vertical market software (VMS) assets. The recent AI-driven software selloff has hammered these stocks. We believe Mr. Market is wrong, and AI will instead benefit incumbents like Constellation and its spin-offs, Topicus and Lumine, and they will continue to compound for years to come. |
| VAL | We have 3 positions in U.S. offshore oil services. Offshore accounts for 1/3 of global oil and gas production and breaks even at levels far below fracking and other methods. Drillships are complex and expensive. There is no new supply in the pipeline. In our view, shares are trading at a significant discount to replacement value. Given the operating leverage, we believe that at $1 million day rates, Transocean, Valaris, and Noble's free cash flow could surge dramatically, and be well over $1 billion per year. |
| NE | We have 3 positions in U.S. offshore oil services. Offshore accounts for 1/3 of global oil and gas production and breaks even at levels far below fracking and other methods. Drillships are complex and expensive. There is no new supply in the pipeline. In our view, shares are trading at a significant discount to replacement value. Given the operating leverage, we believe that at $1 million day rates, Transocean, Valaris, and Noble's free cash flow could surge dramatically, and be well over $1 billion per year. |
| CSU.TO | Constellation Software is a very high-quality compounder founded by Mark Leonard. It operates a buy and build flywheel of vertical market software (VMS) assets. The recent AI-driven software selloff has hammered these stocks. We believe Mr. Market is wrong, and AI will instead benefit incumbents like Constellation and its spin-offs, Topicus and Lumine, and they will continue to compound for years to come. |
| AMR | Alpha is returning 100% of capital to investors via buybacks. The buybacks started in 2022 and in the last 4 years Alpha has reduced its fully diluted share count by 32%. By comparison, Apple, Microsoft, Alphabet and Meta have reduced their respective fully diluted share counts by 11%, 2%, 9% and 7%, respectively. Over the next decade it would not surprise us to see Alpha retire over 70% of their shares outstanding and then switch to dividends. |
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