Pabrai Ups Stake In Horsehead; Cuts Bank of America, Goldman Sachs

Monish Pabrai DhandoBy Fabarsi (Own work) [CC BY-SA 3.0], via Wikimedia Commons

Dalal Street LLC, the investment management firm headed by Mohnish Pabrai, indicated that its stockholdings in the fourth quarter are worth $543.92 million based on its 13F filing with the Securities and Exchange Commission (SEC). The amount of its portfolio increased 18% from $459.68 million in the previous quarter.

Pabrai did not acquire any new equity, but he made changes in the amount of his position in four stocks during the quarter. His largest stockholdings were General Motors Company (NYSE:GM) 2019 warrants, Bank of America Corp (NYSE:BAC), and Horsehead Holdings Corp. (NASDAQ:ZINC).

Pabrai’s increased position

During the quarter, Pabrai raised his position in Horsehead Holdings Corp. (NASDAQ:ZINC) from 5,070,000 shares to 6,333,296 shares. His stake in the company is now worth approximately $102.66 million.

Pabrai first acquired his stake in Horsehead Holdings Corp. (NASDAQ:ZINC) in the fourth quarter of 2008. At the time, the stock was trading between $2.47 and $6 per share. Since then, he significantly increased his stake in the company. The stock is currently trading around $15.44 per share.  Over the past 52-week range, the stock price of Horsehead climbed from $9.38 to $15.50 a share.  The company manufactures and sells zinc and nickel-based products. Its primary market is the United States and Canada.

He also increased his stockholding in General Motors Company (NYSE:GM) 2019 warrants from 5,928,876 shares to 5,929,529 shares. His stake is now worth approximately $137.09 million. He first acquired a stake in the GM warrants in the fourth quarter of 2012. At the time the stake accounts only 4.55% in his portfolio, but is now the largest as it represents 25.20%. The warrants are set to expire on July 2019 with a strike price of $18.33 per share, and are now trading at around $26.45 per share.

Reduced positions

Pabrai sold some of his stake in Bank of America Corp (NYSE:BAC). He lowered his position in the bank from 7,502,000 shares to 7,401,000 shares. The market value of his stockholding is now approximately $115.23 million. He initially acquired his stake in the bank in the third quarter of 2011 when the stock was trading between $6.06 and $11.09 per share.

At present, Bank of America’s shares are trading around $16.78 per share. Over the past 52-week range, the stock climbed from $10.98 to $17.42 per share.

Pabrai also reduce his stake in Goldman Sachs Group Inc (NYSE:GS) from 141,863 shares to 106,863 shares. His stockholding in the company is worth approximately $18.94 million. The stock is currently trading around $163.26 a share. He initially acquired his stake in the stock in the third quarter of 2013 when it was trading in the range of $93.16 to $121.26 per share.

Bank of America Corp (NYSE:BAC) and Goldman Sachs Group Inc (NYSE:GS) are among the banks facing a $16 billion penalty in connection with the mortgage securities complaint filed by regulators.

About the Author

Marie Cabural
Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.