Pabrai Investment Boosts Stakes In Chesapeake And Horsehead Holding

Pabrai Investment Boosts Stakes In Chesapeake And Horsehead Holding
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Pabrai Investment Funds, a group of focused value funds managed by value investor Mohnish Pabrai has no major changes in its portfolio in the second quarter based on its 13F filing with the Securities and Exchange Commission (SEC).

Pabrai Investment Boosts Stakes In Chesapeake And Horsehead Holding

Pabrai Investment’s Stake

During the period, Pabrai’s assets under management (AUM) in his portfolio increased from $399,464,855 to $421,255,000. The fund did not acquire new equities but boosted its stockholdings in Chesapeake Energy Corporation (NYSE:CHK) and HORSEHEAD HOLDING CORP. (NASDAQ:ZINC).

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Pabrai acquired 53,895 shares of Chesapeake Energy Corporation (NYSE:CHK), bringing its stake in the second largest natural gas producer in the United States to 3,268,145 shares. Its stake in the company has a market value of $66,605,000.

Last month, Chesapeake Energy Corporation (NYSE:CHK) sold some of its shale assets to Exco Operating Company, a subsidiary of EXCO Resources Inc (NYSE:XCO) for approximately $1 billion. The sale was part of its objective to compensate for the gap between its cash flow and proposed spending this year.

Chesapeake Energy beats The Street

The recent quarterly financial results for Chesapeake Energy Corporation (NYSE:CHK) exceeded the expectations of Wall Street analysts. The oil and natural gas producer posted $0.51 diluted earnings per share on $4.89 billion revenue compares with the consensus estimate of $0.38 EPS on $3.21 billion revenue.

On the other hand, Pabrai also increased his stake in HORSEHEAD HOLDING CORP. (NASDAQ:ZINC) by 2,974,719 shares to $5,070,000 shares worth $64,947,000 shares. The company sells zinc and nickel-based products.

Horsehead Holding steadily improving and expanding

HORSEHEAD HOLDING CORP. (NASDAQ:ZINC) posted earnings losses in its recent quarterly financial results. The company posted -$0.02 losses per share on $110.5 million revenue, which are lower than the expectations of analysts. Despite the underperformance of the company, its management said the results improved compared with its performance in the second quarter a year ago.

Jim Hensler, president and CEO of the HORSEHEAD HOLDING CORP. (NASDAQ:ZINC) said the company started winding down its Manaca operations, and it is starting the operations of its plant in Mooresboro, North Carolina. The company is also expanding its operations in Zochem.

Meanwhile, other equities owned by Pabrai Investments include Bank of America Corp (NYSE:BAC) 7,502, 000 shares, Citigroup Inc (NYSE:C) 1,560,000 shares, General Motors Company (NYSE:GM) Warrants (WTB) 5,928,876 shares, and  Goldman Sachs Group Inc (NYSE:GS) 141,863 shares. The fund’s stake in these companies did not change in the second quarter.

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