Biggest Holdings of a Hedge Fund Manager and Buffett Admirer

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A businessman and investor, Mohnish Pabrai founded Pabrai Investment Fund in 1999, a hedge fund family with excellent results. Inspired by Warren Buffett’s investment style, Pabrai has certainly made a nice little nest egg for himself that was recently valued at over $230 million. Pabrai has his favorite stocks and he isn’t afraid to throw up to 10% of his fund into a stock… and it seems to have worked in his favor.

Pabrai’s biggest holding is Wells Fargo & Company (NYSE: WFC), also a favorite of Warren Buffett and Leon Cooperman. Even though Wells has had a somewhat rocky year, they weren’t prepared to give up without a fight… and just as well. After combining two businesses, Wells Fargo Family Wealth and Lowry Hill, to create brand Abbot Downing, Wells experienced a fall in stock value around December of last year. But after announcing their acquisition with EverKey Global Partners, things started to turn around at Wells Fargo and have been going great ever since. Wells may have had their struggles, but they still hold the title of fourth largest bank in the United States by assets and operating financial services worldwide.

In another solid investment move, Pabrai has placed much of his total portfolio into Berkshire Hathaway (NYSE: BRK-B), along-side names like George Soros and Ray Dalio. Berkshire Hathaway, based out of Omaha, manages subsidiary companies and also brings another aspect to the table; Warren Buffett. With Pabrai looking to Buffett as somewhat of an investment role model, it’s no wonder Pabrai decided to invest a large portion of his portfolio in a company that boasts Buffett as Chairman and CEO. Pabrai hit worldwide fame for paying $650,000 just for a lunch with the Oracle of Omaha. 

Like many Buffett fanboys, Pabrai sees Berkshire as a collection of top brands and businesses that is highly undervalued. Buffett is still increasing the book value almost every year.  Buffett and Pabrai may not celebrate together over wins with Berkshire Hathaway, but they are certainly both enjoying the returns. With an overall increase of 13.5% for the past year, Pabrai seems happy but still wants more. He increased his position by investing in another 435, 470 shares.

But even good investments sometimes turn bad.  Pabrai has invested millions, along-side other investors like George Soros, in Saskatoon based company Potash Corporation of Saskatchewan (NYSE: POT). Potash Corporation is one of the world’s largest potash, nitrogen and phosphate producers, which are all used to produce fertilizer. Originally government owned, Potash Corporation is now a publicly traded company and while it may hold an impressive title, its shares are not fairing quite so well. Following a heat wave and delayed growth, share value has dropped but Pabrai has stayed strong in his commitment and currently, his position remains unchanged. Overall, Potash Corporation of Saskatchewan is down about 16% for the past year. Perhaps Pabrai expects a comeback from Saskatchewan… and if his other investments are anything to base his intuition off, perhaps they will.

In the meantime, it seems Mohnish Pabrai isn’t concerned and he certainly doesn’t have much to worry about when it comes to his two leading investments. One is heavily purchased by Buffett and the other is run by Buffett himself.  Historically, betting with Warren has paid off.

mthiessen has no positions in the stocks mentioned above. The Motley Fool owns shares of Berkshire Hathaway and Wells Fargo & Company. Motley Fool newsletter services recommend Berkshire Hathaway and Wells Fargo & Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.

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