| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 15.07% | 14.17% | 14.17% |
The Pabrai Wagons ETF, managed by Mohnish Pabrai, positions itself as the Un-S&P 500 with zero overlap to the index, instead investing in irrationally mispriced, unloved corners of global equity markets. The fund returned 44.21% over the past year versus 17.80% for the S&P 500, with key positions concentrated in six buckets representing 76% of the portfolio. Major themes include metallurgical coal businesses with exceptional reserves and management teams, offshore oil services companies trading at discounts to replacement value amid supply constraints, and vertical market software companies hammered by AI fears but positioned to benefit from the technology. The fund also holds airport operators with high operating leverage, logistics companies with recurring revenues, and financial services firms planning multiple spin-offs. Pabrai follows Berkshire Hathaway's approach of making a few great long-term decisions, emphasizing capital allocation excellence and holding great businesses forever while avoiding fancy valuations.
The Pabrai Wagons ETF positions itself as the Un-S&P 500 by investing in irrationally mispriced, unloved and overlooked corners of global equity markets, with zero overlap to the S&P 500, focusing on metallurgical coal, offshore drilling, airports, and vertical market software companies.
The manager expects exceptional investment performance from a few great investments held for a very long time, following the Circle the Wagons principle of holding great businesses forever while avoiding fancy prices.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| 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 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 |
|---|---|
| HCC | Warrior Met Coal - We are invested in a handful of metallurgical (met) coal businesses. Two of these are near the bottom quartile of the cost curve and all of them are led by exceptional managers. All three of these businesses have some of the best met coal reserves on the planet. |
| AMR | Alpha Metallurgical Resources - 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%. Over the next decade it would not surprise us to see Alpha retire over 70% of their shares outstanding and then switch to dividends. |
| RIG | Transocean - We have 3 positions in U.S. offshore oil services. 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. |
| VAL | Valaris - We have 3 positions in U.S. offshore oil services. 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 | Noble Corporation - We have 3 positions in U.S. offshore oil services. 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. |
| 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. In our view, these business units are worth more than the entire market cap of TAV. |
| EDEL.NS | Based in India, Edelweiss is a holding company with various financial services subsidiaries that we believe have many tailwinds. Over the next 5-6 years, Edelweiss plans to spin off at least 4 different subsidiaries. We believe each will have a market cap of $0.5 - $1.5 billion at the time of the spin-off. |
| RYSAS.IS | Reysas is a logistics business that owns 62% of Reysas REIT that owns over 12 million sq.ft of Grade A warehouses in Turkiye. Led by father-son duo who we believe are exceptional operators and capital allocators. Almost all of Reysas' businesses have strong recurring revenues and are market leaders. |
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