John Hjorth Posted January 6 Posted January 6 Thank you, Sanjeev [ @Parsad ], So a 'flow-through' arrangement, the funds eventually ending in Dakshana Foundation.
Parsad Posted January 6 Posted January 6 49 minutes ago, John Hjorth said: Thank you, Sanjeev [ @Parsad ], So a 'flow-through' arrangement, the funds eventually ending in Dakshana Foundation. Yes. The funds going into Dakshana Foundation in India had to come from a foundation/non-profit at the source of origin...so a Canadian arm of Dakshana. Yes, it is all used in India. Dakshana Canada has minimal costs other than an audit and minor legal fees...no staff, etc. Cheers!
Saluki Posted January 7 Posted January 7 1 hour ago, TB said: Looks like there is compensation paid to one of the directors per perplexity.ai - "For the U.S. branch of the Dakshana Foundation, the most recent data shows that Monsoon Pabrai, a director, received $25,000 in compensation, while other key figures like Mohnish Pabrai (Chairman) and Fahad Missmar (CFO) received $0 compensation" While being a director at a for profit company is a great gig, at a non profit it's usually not compensated, or a position given to large donors. So it often pays far less than $0. It depends, but $25k does not seem out of the question if you are asking them to travel to India or do other things that would require you to buy insurance so that you don't pay out of pocket if you get sued or investigated by the government.
coc Posted January 22 Posted January 22 On 1/3/2025 at 2:28 PM, oscarazocar said: The slides below are from a Dhando Zero Fee Fund presentation from 2021 Q3. They show comparisons between three funds (Dhandho Zero Fee Fund, India Small Cap Index, and S&P 500) over two periods, 10/1/17 to 3/31/20 and 4/1/20 to 9/31/21. The slides show the Dhandho fund slightly underperforming the India Small Cap Index from 10/1/17 to 3/31/20 and then hugely outperforming the S&P 500 from 4/1/20 to 9/31/21. After looking at the slides, what was the total perfomance of the funds over the combined periods? Combined performance: Dhandho India Fund: 10/1/17-3/31/20: -52.5% 4/1/20-9/31/21: 119% Total: 3% (not shown in slide) India Small Cap: 10/1/17-3/31/20: -48.3% 4/1/20-9/31/21: 195% (not shown in slides) Total: 52% (not shown in slides) S&P 500: 10/1/17-3/31/20: 6% (not shown in slides) 4/1/20-9/31/21: 70.6% Total: 81% (not shown in slides) Do you think that the slides as shown are a reasonable way to compare the perfomances of the three funds? I'm late to seeing this but thanks for posting it. Somehow, this guy has managed to become an even bigger bullsh*tter over time.
Stuart D Posted January 23 Posted January 23 14 hours ago, coc said: Combined performance: Dhandho India Fund: 10/1/17-3/31/20: -52.5% 4/1/20-9/31/21: 119% Total: 3% (not shown in slide) India Small Cap: 10/1/17-3/31/20: -48.3% 4/1/20-9/31/21: 195% (not shown in slides) Total: 52% (not shown in slides) S&P 500: 10/1/17-3/31/20: 6% (not shown in slides) 4/1/20-9/31/21: 70.6% Total: 81% (not shown in slides) Hmmm…. if not deceptive, it’s certainly not transparent. Thanks for joining the dots to compile the summary!
nsx5200 Posted January 23 Posted January 23 5 hours ago, Stuart D said: Hmmm…. if not deceptive, it’s certainly not transparent. Thanks for joining the dots to compile the summary! Despite my respect and gratitude for Mohnish's business analysis, it does seem like the long-term fund performance warrants some retrospective analysis in his reports, even if it's a David Einhorn style of "value investing's not working". Some mea culpas or place where more patience is needed would provide a bit more transparency to the investment style that his investors are really paying for. It's possible that this is already done, but in my brief search, it doesn't seem to be in the few public reports that I quickly pulled up. If that's already done, I apologize in advance and would appreciate a link. TIA.
Vish_ram Posted January 23 Posted January 23 (edited) As a money manager one thing I've noticed is that there is a lot of inertia with clients. 90% of them aren't quick to leave as they rationalize poor performance. Clients will attribute some of the poor perf to their bad luck like timing. Managers go thru boom & bust cycles. Many clients generally come during boom and more during the peak of the boom. The selective focus (look here, and not there) goes a long way in retaining. Even for a very bad manager, there's this Herbalife phenomenon. Herbalife goes to a country with full of promise, grabs a rag tag of distributors. Few early ones do well and in the end majority does poorly. After a few years, Herbalife exits the country and goes to a new one. The cycle repeats. A fund manager with a steady stream of publicity can attract for funds for decades despite very poor perf. This is why I like businesses like AMP & LPLA. People also form an attachment, a bond/affinity. Edited January 23 by Vish_ram
Blake Hampton Posted February 3 Posted February 3 Anybody know why this guy's been on such a coal kick? I should've asked this question two months ago when I could've made a Christmas joke.
Longnose Posted February 3 Posted February 3 52 minutes ago, Blake Hampton said: Anybody know why this guy's been on such a coal kick? I should've asked this question two months ago when I could've made a Christmas joke. 25ish minute mark
Spekulatius Posted February 3 Posted February 3 1 minute ago, Longnose said: 25ish minute mark I think Monish peak coal was a few month ago- it has faded a bit with the met coal and stock prices. It’s wasn’t a bad idea actually, but I think he overstayed his welcome.
Blake Hampton Posted February 3 Posted February 3 6 minutes ago, Longnose said: 25ish minute mark Thanks for the video.
This2ShallPass Posted February 5 Posted February 5 On 1/22/2025 at 9:28 AM, coc said: I'm late to seeing this but thanks for posting it. Somehow, this guy has managed to become an even bigger bullsh*tter over time. Thanks for posting this. I missed the original post by @oscarazocar connecting the dots. I have been one of the Pabrai defendants in this board, followed him closely for a few years (luckily didn't clone). In 2023 I initiated a small position in the Wagons fund, I really liked exposure to some of the stocks that I cannot have. But this is definitely deceptive, he should be ashamed..the brazen switch of the benchmark in the two slides
Munger_Disciple Posted February 5 Posted February 5 On 2/3/2025 at 3:22 PM, Spekulatius said: I think Monish peak coal was a few month ago- it has faded a bit with the met coal and stock prices. It’s wasn’t a bad idea actually, but I think he overstayed his welcome. I think you''re right. Looks like he is getting off the coal wagon, onto another (Nick Sleep?) wagon.
winjitsu Posted February 6 Posted February 6 (edited) On 2/5/2025 at 12:14 PM, This2ShallPass said: Thanks for posting this. I missed the original post by @oscarazocar connecting the dots. I have been one of the Pabrai defendants in this board, followed him closely for a few years (luckily didn't clone). In 2023 I initiated a small position in the Wagons fund, I really liked exposure to some of the stocks that I cannot have. But this is definitely deceptive, he should be ashamed..the brazen switch of the benchmark in the two slides He's under-performed outside of the first 5 years. https://x.com/eriksen_tim/status/1814015323752071364 The fact he has raised and managed billions while under performing says alot Edited February 6 by winjitsu
Gregmal Posted February 6 Posted February 6 5 minutes ago, winjitsu said: He's under-performed outside of the first 5 years. https://x.com/eriksen_tim/status/1814015323752071364 The fact he has raised and managed billions while under performing says alot Not really. He beautifully networked himself into a Rolodex of future marketing material, and people bought it hook, line, and sinker.
Munger_Disciple Posted February 6 Posted February 6 @Vish_ram can you please explain your chart? Is the final value a compounded one? Does't appear to be.
Vish_ram Posted February 6 Posted February 6 assume that in the beginning of each period, the person comes up with 100K and invests. Whats the value if the person never sold and kept it life to date. The last column is difference between S&P and PIF2. this is the money the investor got extra or lost investing in PIF2.
Parsad Posted February 6 Posted February 6 Vish, I'm still confused by your spreadsheet...can you put the actual spreadsheet with formulas on the board? Cheers!
Munger_Disciple Posted February 7 Posted February 7 (edited) 10 minutes ago, Parsad said: Vish, I'm still confused by your spreadsheet...can you put the actual spreadsheet with formulas on the board? Cheers! I too am still confused. Suggestion to @Vish_ram: perhaps you can post the IRR for both options & when the capital is invested/taken out for the two strategies. Edited February 7 by Munger_Disciple
Vish_ram Posted February 7 Posted February 7 (edited) sorry for not making it clear and for the small error (I should have ignored last row as period sequencing was interrupted). I've recomputed it manually. For first period of 10/1/00-6/30/01 - Investor invests 100K on 10/1/00 and holds it until 6/30/23. Investor puts 100K in each of PIF2 and S&P. This is cumulative return. Formula for excel row 2 S&P 500 is (1-.14)*(1-.18)*(1+.03)....*(1+.1960)* 100K = 472,629.02 for S&P 500 life to date Formula for excel row 2 PIF2 is (1+.1740)*(1+.353).....*(1+.2460) * 100K = $953,727.79 For excel row 3, I do the same starting with row 3 returns onwards. Edited February 7 by Vish_ram
Vish_ram Posted February 7 Posted February 7 (edited) When an advisor shows returns, the pertinent question to ask is, what is the cumulative return assuming one joined in each of past years. Some may show life time CAGR that looks bad against S&P, but over the years if they are getting better and better, then except for few who joined on Day 1, most of latter would have done well. Pabrai avoided the .com collapse and was in the value stocks during early phase and is living off the past glory by showing a return of first few investors (when he was managing < 10M). 99% of capital that got in later (after 2nd year) got thrashed by S&P. The annualized and cumulative percentages are misleading as it shows the % for first investor on Day 1. If I do this for PIF4, it’ll look like those Reddit WSB loss porn. Edited February 7 by Vish_ram
schin Posted February 7 Posted February 7 30 minutes ago, Vish_ram said: sorry for not making it clear and for the small error (I should have ignored last row as period sequencing was interrupted). I've recomputed it manually. For first period of 10/1/00-6/30/01 - Investor invests 100K on 10/1/00 and holds it until 6/30/23. Investor puts 100K in each of PIF2 and S&P. This is cumulative return. Formula for excel row 2 S&P 500 is (1-.14)*(1-.18)*(1+.03)....*(1+.1960)* 100K = 472,629.02 for S&P 500 life to date Formula for excel row 2 PIF2 is (1+.1740)*(1+.353).....*(1+.2460) * 100K = $953,727.79 For excel row 3, I do the same starting with row 3 returns onwards. @Vish_ram I think your row 2 S&P .03 should be .003
Munger_Disciple Posted February 7 Posted February 7 (edited) 4 hours ago, Vish_ram said: When an advisor shows returns, the pertinent question to ask is, what is the cumulative return assuming one joined in each of past years. Some may show life time CAGR that looks bad against S&P, but over the years if they are getting better and better, then except for few who joined on Day 1, most of latter would have done well. Pabrai avoided the .com collapse and was in the value stocks during early phase and is living off the past glory by showing a return of first few investors (when he was managing < 10M). 99% of capital that got in later (after 2nd year) got thrashed by S&P. The annualized and cumulative percentages are misleading as it shows the % for first investor on Day 1. If I do this for PIF4, it’ll look like those Reddit WSB loss porn. Thanks for the explanation. Another useful way to see how a fund does is by looking at money weighted returns, or more commonly known as IRR which takes into account the timing of incoming & outgoing cashflows. A manager may have a decent time weighted return (a metric used by almost all funds, which only shows $1 invested at the beginning did over time) but a lousy money weighted return. That may be indeed the case with Pabrai Funds. Munger actually pointed out the usefulness of MWR in one of his last interviews. Edited February 7 by Munger_Disciple
Vish_ram Posted February 7 Posted February 7 Mutual fund Industry doesn’t use MWR but makes sense in PE and others. Even with TWR, a major factor influencing one’s personal return is timing of entry and addition. you can invest only in S&P and massively underperform/outperform it.
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