Pabrai Buys Posco; Reduces Chesapeake Energy

Pabrai Investment Funds acquired a stake in Posco (ADR) (NYSE:PKX) and reduced its stockholding in Chesapeake Energy Corporation (NYSE:CHK) based on its 13F filing with the Securities and Exchange Commission (SEC) for the second quarter.

Pabrai Buys Posco; Reduces Chesapeake Energy

Pabrai Investment’s new position

The filing showed that Pabrai Investment Funds bought 977,634 shares of Posco (ADR) (NYSE:PKX) worth approximately $72.77 million. Posco is a Korean-based manufacturer and distributor of steel products such as hot rolled steels, steel plates, wire rods, cold rolled steels, galvanized steels, stainless steels and others.

Last month, Posco (ADR) (NYSE:PKX) reported strong second-quarter financial results with a net income of KRW 487 billion ($473.8 million), a 770% increase sequentially. Its earnings per share were KRW 5,581.7 per share ($1.36) per ADR. The Korean steel company’s consolidated revenues increased 8.2% sequentially to KRW 16,704 billion ($16.3 billion).

Reduced position

During the quarter, Pabrai Investment Funds reduced its stake in Chesapeake Energy Corporation (NYSE:CHK) by 2,594,545 share to 668,000 shares. The investment management firm’s stake in the energy company is still worth around $20.76 million.

Chesapeake Energy Corporation (NYSE:CHK) is the sixth largest stockholding of Pabrai Investment Funds.

Other positions

Pabrai Investment Funds owns 6,333,296 shares of HORSEHEAD HOLDING CORP. (NASDAQ:ZINC) worth more than $115.6 million, its largest position in its portfolio.

The investment management firm also owns 5,936,015 shares of General Motors Company (NYSE:GM) Warrant (expires July 10, 2019). Its investment in the automakers’ warrant is worth approximately $110.15 million. It also owns 23,305 shares of the common stock of the automaker worth $846,000.

Pabrai Investment Funds also owns 4,875,000 shares of Bank of America Corp (NYSE:BAC) worth around $74.93 million and 1,420,000 shares of Citigroup Inc (NYSE:C) with a market value of around $66.88 million.

In addition, Pabrai Investment Funds also own stakes in Goldman Sachs Group Inc (NYSE:GS) and Berkshire Hathaway Inc (NYSE:BRK.B). The investment management firms has 106,863 shares of Goldman Sachs worth around $17.89 million and 7,025 Class B shares of Berkshire Hathaway worth approximately $889,000.

Monish Pabrai is a managing partner of Pabrai Investment Funds. He is a value investor and author of books on investing and operating a business entitled: The Dhandho Investor: The Low – Risk Value Method to High Returns and Mosaic: Perspectives on Investing.

Pabrai Investment Funds; equity portfolio for the second-quarter has a market value of around $480.77 million based on its 13F filing.

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.