Mohnish Pabrai (Trades, Portfolio), managing partner of Pabrai Investment Funds, disclosed in a 13-F filing this week that during the fourth quarter of 2021, his firm exited its remaining shares of Alibaba Group Holding Ltd. (BABA, Financial), trimmed its holding in Seritage Growth Properties (SRG, Financial) and boosted its holding in Micron Technology Inc. (MU, Financial).
A value investor, Pabrai said in an 2019 GuruFocus interview that he has allocated most of his funds in non-U.S. countries like India and South Korea, where he is finding more attractive opportunities. Investors should note that his U.S.-based portfolio represents only a fraction of his firm’s total assets under management.
Alibaba
Having slashed more than 77% of its Alibaba (BABA, Financial) holding during the third quarter of 2021, Pabrai's firm sold the remaining 57,347 shares during the fourth quarter. The transaction knocked off 4.45% of its equity portfolio.
Shares of Alibaba averaged $145.10 during the fourth quarter; the stock is significantly undervalued based on Monday’s price-to-GF-Value ratio of 0.32.
GuruFocus ranks the Chinese e-commerce giant’s profitability 8 out of 10 on the heels of a three-star business predictability rank and profit margins outperforming more than 80% of global competitors.
Gurus with holdings in Alibaba include Charlie Munger (Trades, Portfolio)’s Daily Journal Corp. (DJCO), PRIMECAP Management (Trades, Portfolio), Baillie Gifford (Trades, Portfolio) and Dodge & Cox.
Seritage Growth Properties
Pabrai sold 1.211 million shares of Seritage Growth Properties (SRG, Financial), slicing 25.59% of the position and 9.41% of its equity portfolio. On Jan. 6, the firm sold another 66,108 shares of Seritage according to GuruFocus Real-Time Picks, a Premium feature.
Shares of Seritage averaged $14.63 during the fourth quarter; the stock is significantly undervalued based on Monday’s price-to-GF-Value ratio of 0.58.
GuruFocus ranks the New York-based retail REIT’s financial strength 2 out of 10 on several warning signs, which include a low Piotroski F-score of 2 and a debt-to-equity ratio that underperforms more than 90% of global competitors.
Micron Technology
Pabrai added 244,662 shares of Micron Technology (MU, Financial), boosting the position by 15.49% and its equity portfolio by 10.52%.
Shares of Micron averaged $78.57 during the fourth quarter; the stock is modestly overvalued based on Monday’s price-to-GF-Value ratio of 1.20.
GuruFocus ranks the Boise, Idaho-based semiconductor company’s profitability 9 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank, a high Piotroski F-score of 9 and an operating margin that has increased more than 30% per year on average over the past five years and is outperforming over 85% of global competitors.
Gurus with holdings in Micron Technology include PRIMECAP and Li Lu (Trades, Portfolio)’s Himalaya Capital Management.
