Value investor Mohnish Pabrai of Pabrai Investment Funds filed a 13F for the second quarter of 2026, revealing a highly concentrated portfolio of just four stocks valued at $326.75 million. The filing shows Pabrai's continued conviction in the energy sector, with significant holdings in coal and offshore drilling. His top positions include Warrior Met Coal (HCC) at a 43.32% weight, Transocean Ltd (RIG) at 30.53%, and Alpha Metallurgical Resources (AMR) at 26.11%. A small new position was also initiated in Kaspi.kz (KSPI), making up just 0.05% of the portfolio.
The most significant change during the quarter was a reduction in the fund's Alpha Metallurgical Resources stake. Pabrai sold a portion of the holding, decreasing the share count from 579.74K to 517.19K. Despite the sale, AMR remains a top-three position, though its portfolio weight slightly decreased from 28.14% to 26.11%. This high-conviction bet, alongside other energy-related stocks, aligns with Pabrai's known strategy of making large, infrequent bets in distressed or out-of-favor industries.
Pabrai, a self-described "shameless cloner" of Warren Buffett, is known for his long-term, value-oriented approach and running a concentrated portfolio. This latest filing continues to reflect that philosophy, with the top three holdings accounting for nearly the entire portfolio value. The minor reduction in one of his core holdings while maintaining a highly concentrated structure suggests a nuanced shift rather than a broad change in strategy. Investors often follow Pabrai's moves closely due to his successful long-term track record and disciplined investment framework.