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Hedge Fund Manager Mohnish Pabrai Buys Chesapeake Energy Corp, General Motors Co, Sells Goldman Sachs Group Inc

November 13, 2012 | About:
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Hedge Fund manager Mohnish Pabrai just reported his third quarter portfolio. He buys Chesapeake Energy Corp, General Motors Co, reduces Goldman Sachs Group Inc during the 3-months ended 09/30/2012. As of 09/30/2012, Pabrai Mohnish owns 6 stocks with a total value of $273 million. Mohnish Pabrai runs a concentrated portfolio, now 65% of that in financials. 24% of the portfolio is in Bank of America (BAC). Another 21% is in Citigroup (C). These financials have hurt famed mutual fund manager Bruce Berkowitz badly. Mohnish Pabrai got in at lower prices.

Mohnish Pabrai was known for his bid on lunch with Warren Buffett, in which he paid $650,000 to have lunch with Warren Buffett. He even called himself the Buffett clone. He wrote two well received books "The Dhandho Investor: The Low - Risk Value Method to High Returns" and "Mosaic: Perspectives on Investing". Pabrai’s funds suffers larges losses during the financial crisis in 2008. We will still need to see how his bets with financials will fare over the next few years.

These are the details of the buys and sells.

  • Added Positions: CHK, GM,
  • Reduced Positions: GS,
For the details of Mohnish Pabrai's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Mohnish+Pabrai

This is the sector weightings of his portfolio:

Financials 54.1%
Oil & Gas 20.6%
Consumer Goods 19%
Basic Materials 6.3%


These are the top 5 holdings of Mohnish Pabrai

  1. Bank Of America Corporation (BAC) - 7,502,000 shares, 24.2% of the total portfolio.
  2. Citigroup Inc (C) - 1,807,000 shares, 21.6% of the total portfolio. Shares reduced by 0.03%
  3. Chesapeake Energy Corp (CHK) - 2,983,817 shares, 20.6% of the total portfolio. Shares added by 196.9%
  4. General Motors Co (GM) - 2,283,650 shares, 19.0% of the total portfolio. Shares added by 2.09%
  5. Goldman Sachs Group Inc (GS) - 198,863 shares, 8.3% of the total portfolio. Shares reduced by 60.71%


Added: Chesapeake Energy Corp (CHK)

Mohnish Pabrai added to his holdings in Chesapeake Energy Corp by 196.9%. His purchase prices were between $16.83 and $20.52, with an estimated average price of $19.08. The impact to his portfolio due to this purchase was 13.66%. His holdings were 2,983,817 shares as of 09/30/2012. Chesapeake Energy Corp. is an independent oil and gas company engaged in the development, exploration, acquisition and production of onshore natural gas and oil reserves. Chesapeake Energy Corp has a market cap of $11.34 billion; its shares were traded at around $17.5 with a P/E ratio of 18.5 and P/S ratio of 1. The dividend yield of Chesapeake Energy Corp stocks is 2.1%. Chesapeake Energy Corp had an annual average earnings growth of 8% over the past 10 years.

Added: General Motors Co (GM)

Mohnish Pabrai added to his holdings in General Motors Co by 2.09%. His purchase prices were between $18.79 and $24.77, with an estimated average price of $21.06. The impact to his portfolio due to this purchase was 0.39%. His holdings were 2,283,650 shares as of 09/30/2012. General Motors Company is engaged in the designing, manufacturing and retailing of vehicles globally including passenger cars, crossover vehicles, and light trucks, sport utility vehicles, vans and other vehicles. General Motors Co has a market cap of $39.21 billion; its shares were traded at around $25.04 with a P/E ratio of 8 and P/S ratio of 0.3.

Reduced: Goldman Sachs Group Inc (GS)

Mohnish Pabrai reduced to his holdings in Goldman Sachs Group Inc by 60.71%. His sale prices were between $93.12 and $121.3, with an estimated average price of $104.19. The impact to his portfolio due to this sale was -12.26%. Mohnish Pabrai still held 198,863 shares as of 09/30/2012. Goldman Sachs is a global investment banking and securities firm, providing a full range of investing, advisory and financing services worldwide to a substantial and diversified client base, which includes corporations, financial institutions, governments, and high net worth individuals. Goldman Sachs Group Inc has a market cap of $55.68 billion; its shares were traded at around $118.22 with a P/E ratio of 11.2 and P/S ratio of 1.9. The dividend yield of Goldman Sachs Group Inc stocks is 1.6%. Goldman Sachs Group Inc had an annual average earnings growth of 4.8% over the past 10 years.

Here is the complete portfolio of Mohnish Pabrai. Also check out:

1. Mohnish Pabrai's Undervalued Stocks

2. Mohnish Pabrai's Top Growth Companies, and

3. Mohnish Pabrai's High Yield stocks


Rating: 4.2/5 (5 votes)

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