2017 has turned out to be an excellent year for Mohnish Pabrai’s Pabrai investment funds. After struggling in 2015 and 2016, Pabrai’s leading fund, the Pabrai Investment Fund II achieved a total return of 56.8% for the year to the end of the third quarter.
For the 12 months to the end of the quarter, the fund achieved a gross return of 100.6% according to Pabrai’s Q3 letter to investors, a copy of which has been reviewed by ValueWalk.
Also see Pabrai’s favorite books here
Following this return, the PIF2 has produced a total annualized return for investors of 15.8% since inception in 1999. Over the same period, the Dow Jones Industrial Average delivered a total annualized gain of 6.5%.
Mohnish Pabrai Fund top stocks
In his Q3 letter, Pabrai writes that these returns are not a result of great ideas he’s had over the past few quarters, but the result of years of diligently hunting for value. The primary driver of recent returns he writes is the “voting machine on its way to becoming a weighing machine.” He goes on to say, “The single most important skill for an investor is patience. Extreme patience. We are beginning to reap the rewards of both your patience and mine.”
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By far the most successful position for the fund this year has been Fiat Chrysler. In the middle of 2016, this stock was changing hands for $6 a share, at the time of writing the stock is trading above $18 “with no meaningful change in value.”
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