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Dhando investor meeting 2015 – A day with Mohnish Pabrai


phil_Buffett

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I don't understand how Horsehead could have started at the maximum size of 10% and have grown to 15%.  It doesn't bother me if it's a 15% holding, I'm just curious how it got that way if the limit is 10%.

 

Is it 15% of holdings but only 10% of fund size -- suggesting uninvested cash skewing the data?

 

 

From the notes:

"Pabrai currently holds: Fiat 42% of the fund , GM B Warrents >10% , POSCO ~10% , ~15% Horsehead Holding , ~10% Google"

 

"He doesn’t invest more than 10% into one position but doesn’t mind when a position grows."

 

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I don't understand how Horsehead could have started at the maximum size of 10% and have grown to 15%.  It doesn't bother me if it's a 15% holding, I'm just curious how it got that way if the limit is 10%.

 

Is it 15% of holdings but only 10% of fund size -- suggesting uninvested cash skewing the data?

 

 

From the notes:

"Pabrai currently holds: Fiat 42% of the fund , GM B Warrents >10% , POSCO ~10% , ~15% Horsehead Holding , ~10% Google"

 

"He doesnt invest more than 10% into one position but doesnt mind when a position grows."

 

 

i would suspect that it is because most of zinc mohnish bought at very low Prices. around $3-4 per share. therefore i think it is growing to 15%

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I don't understand how Horsehead could have started at the maximum size of 10% and have grown to 15%.  It doesn't bother me if it's a 15% holding, I'm just curious how it got that way if the limit is 10%.

 

Is it 15% of holdings but only 10% of fund size -- suggesting uninvested cash skewing the data?

 

 

From the notes:

"Pabrai currently holds: Fiat 42% of the fund , GM B Warrents >10% , POSCO ~10% , ~15% Horsehead Holding , ~10% Google"

 

"He doesn’t invest more than 10% into one position but doesn’t mind when a position grows."

 

He has a bunch of non-US holdings that are unreported to SEC, I believe.

BTW Horsehead was the only original idea in his current portfolio and it didn't do well so far. Mining is tough!

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I don't understand how Horsehead could have started at the maximum size of 10% and have grown to 15%.  It doesn't bother me if it's a 15% holding, I'm just curious how it got that way if the limit is 10%.

 

Is it 15% of holdings but only 10% of fund size -- suggesting uninvested cash skewing the data?

 

 

From the notes:

"Pabrai currently holds: Fiat 42% of the fund , GM B Warrents >10% , POSCO ~10% , ~15% Horsehead Holding , ~10% Google"

 

"He doesn’t invest more than 10% into one position but doesn’t mind when a position grows."

 

He has a bunch of non-US holdings that are unreported to SEC, I believe.

BTW Horsehead was the only original idea in his current portfolio and it didn't do well so far. Mining is tough!

 

A couple of Indian stocks of which he mentioned a few in an interview when he was in India and Hyundai Preferred. And maybe some other stuff.

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I don't understand how Horsehead could have started at the maximum size of 10% and have grown to 15%.  It doesn't bother me if it's a 15% holding, I'm just curious how it got that way if the limit is 10%.

 

Is it 15% of holdings but only 10% of fund size -- suggesting uninvested cash skewing the data?

 

 

From the notes:

"Pabrai currently holds: Fiat 42% of the fund , GM B Warrents >10% , POSCO ~10% , ~15% Horsehead Holding , ~10% Google"

 

"He doesn’t invest more than 10% into one position but doesn’t mind when a position grows."

 

 

i would suspect that it is because most of zinc mohnish bought at very low Prices. around $3-4 per share. therefore i think it is growing to 15%

 

ZINC stock chart suggests it hasn't traded at those levels since Feb 2009.

 

It makes sense if there are other foreign holdings skewing the data -- however I thought these were notes from the meeting so it's a little odd if the meeting didn't present the data in a non-skewed manner.  Anyways, doesn't really matter.

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I don't understand how Horsehead could have started at the maximum size of 10% and have grown to 15%.  It doesn't bother me if it's a 15% holding, I'm just curious how it got that way if the limit is 10%.

 

Is it 15% of holdings but only 10% of fund size -- suggesting uninvested cash skewing the data?

 

 

From the notes:

"Pabrai currently holds: Fiat 42% of the fund , GM B Warrents >10% , POSCO ~10% , ~15% Horsehead Holding , ~10% Google"

 

"He doesn’t invest more than 10% into one position but doesn’t mind when a position grows."

 

 

i would suspect that it is because most of zinc mohnish bought at very low Prices. around $3-4 per share. therefore i think it is growing to 15%

 

ZINC stock chart suggests it hasn't traded at those levels since Feb 2009.

 

It makes sense if there are other foreign holdings skewing the data -- however I thought these were notes from the meeting so it's a little odd if the meeting didn't present the data in a non-skewed manner.  Anyways, doesn't really matter.

 

It also does not work with FCAU: 10% could not have grown to 42% even if he bought at the bottom.

Hmm, I guess it could if the whole fund shrunk significantly...

But "Anyways, doesn't really matter." ;)

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Yesterday, I thought I heard Monish explicitly state that he will not invest more than 10% in any one position.

But if it grows well beyond 10%, that's ok, as long as the security is well undervalued - he will hold it.

 

There were several other COFB members in attendance - so please correct me or elaborate.

 

Perhaps the entry % skew is due to international holdings that are not listed and their ommission distorts the final math.

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Anybody knows at what prices he got into FCAU ? He started buying Q4-2014 so that suggests around ~$9/share. But, I might be wrong.

 

I think his average is a little over 5. He started buying much earlier than 2014, Q4.

 

cubsfan is correct. Prior to Q4 2014, the shares were not traded on a US exchange. They were traded either in the Italian stock exchange or OTC in the U.S. The reason it looks like he started buying in Q4 2014 is because that's when they listed on the NYSE, so that's when it shows up on a 13-F filing.

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He has a bunch of non-US holdings that are unreported to SEC, I believe.

BTW Horsehead was the only original idea in his current portfolio and it didn't do well so far. Mining is tough!

 

Horsehead doesn't mine Zinc. They get their zinc from EAF (Electric Arc Furnace) dust that they get from Steel plants e.g. Nucor for a fee.  They recycle zinc and nickle.

 

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