Mohnish Pabrai
, who founded the Buffett Partnerships-inspired Pabrai Investment
Funds in 1999, has announced his third quarter 2012 portfolio
update. The sole additions were increases to his Chesapeake
Energy Corp (
CHK
) and General Motors (
GM
) positions.
Pabrai started his company with $1 million and quickly grew it to
$500 million in assets under management with an investing style
that is a pastiche of the philosophies of
Warren Buffett
and other noted value investors.
Chesapeake Energy Corp (
CHK
)
Chesapeake grew to a 20.6% weighting in Pabrai's portfolio after
he bought an additional 1,978,817 shares for $19 each on average
in the third quarter. Pabrai opened the position with 1,005,000
shares, which he purchased for $18 each on average, in the second
quarter of 2012. His total shareholding at quarter-end was
2,983,817.
Chesapeake is the natural gas and oil company whose stock
declined almost 21% year to date on corporate scandal and net
losses. In the third quarter, the company reported a net loss of
$2.01 billion, or $3.19 per fully diluted common share, due to
the write down of the value of some assets as a result of low
natural gas prices.
The company's daily production in the quarter increased 24% year
over year and 9% sequentially. It consisted of 79% natural gas,
14% of oil and 7% of NGL.
General Motors (
GM
)
Pabrai bought 46,650 shares of General Motors for $21 each on
average, making the stock 19% of his portfolio. He initiated the
position in the previous quarter with 2,283,650 shares he
purchased for $22.50 each on average. Now his total holding
stands at 2,283,650 shares.
General Motor's stock gained 23% year to date after a dip in the
third quarter when Pabrai purchased. On Oct. 31 the company
reported third quarter net income of $1.5 billion, or $0.89 per
fully diluted share, close to the $1.7 billion, or $1.03 per
fully diluted share reported in the third quarter of 2012.
Revenue was $37.6 billion compared with $36.7 billion a year ago.
GM's chairman and CEO, Dan Akerson, attributed the solid results
to the good reception of its new vehicles and progress in its
most pressing concerns such as complexity reduction, pensions and
Europe. The company expects next quarter's results to be the same
or slightly better than the same quarter last year.
Other Holdings
Pabrai has a concentrated portfolio with only four other stocks:
Horsehead Holding Corporation (
ZINC
), Bank of America Corp. (
BAC
), Citigroup Inc. (
C
) and Goldman Sachs Group (
GS
). Of those, he reduced Citigroup by 0.03% and Goldman Sachs by
60.71%.
See
Mohnish Pabrai
's portfolio here. Also check out the
Undervalued Stocks
, Top Growth Companies and High Yield stocks of Mohnish
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