Breaking down the stocks Mohnish Pabrai (Dalal Street) bought, sold, and held in Q1 2026, including their holdings at the end of the quarter. All data sourced from Dalal Street's 13F filed on May 14, 2026.
Who are Mohnish Pabrai and Pabrai Investment Funds?
Mohnish Pabrai is the Managing Partner of Pabrai Investment Funds and the CEO of Dhandho Funds and its parent Dhandho Holdings. As of June 30, 2025, Mohnish manages approximately $900 million in private partnership and mutual fund (the Pabrai Wagons Fund) assets through Dhandho Funds and its affiliated advisor Dalal Street LLC. Mohnish is an ardent disciple of Warren Buffett and closely follows his principles of value investing and capital allocation. He is the author of two books on value investing, The Dhandho Investor and Mosaic: Perspectives on Investing. His investment strategy is a classic value investing approach inspired by Warren Buffett and Charlie Munger, emphasizing a "few bets, big bets, infrequent bets" philosophy with a focus on asymmetric opportunities that offer limited downside and substantial upside. Pabrai focuses on undervalued, high-quality companies—often in cyclical or "old economy" sectors—that can compound intrinsic value over long periods, with strong qualitative factors like predictable cash flows, strong balance sheets, margin of safety, competent management, long-term reinvestment potential, and durable competitive advantages.
Pabraifunds.com
Chai with Pabrai
Mohnish Pabrai on X
Q1 '26 13F filed with SEC
Holdings in Q1 2026
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| HCC | Warrior Met Coal | 39.9% | Added (+1%) | $168.68B |
| RIG | Transocean | 32.0% | Trimmed (-25%) | $135.2B |
| AMR | Alpha Metallurgical | 28.1% | Added (+7%) | $119B |
| VAL | Valaris | 0.0% | Exited | $-23.14B |
Current Investment Strategy
Mohnish Pabrai, the Warren Buffett-inspired managing partner of Pabrai Investment Funds, continued to run an exceptionally concentrated U.S. public equity portfolio in Q1 2026, holding just three positions—Warrior Met Coal, Transocean, and Alpha Metallurgical Resources—worth approximately $423 million, after fully exiting Valaris during the quarter. Adhering to his hallmark "few bets, big bets, infrequent bets" philosophy, Pabrai remained deeply committed to cyclical, commodity-linked sectors—specifically metallurgical coal and offshore drilling—where he sees deeply undervalued assets with asymmetric upside as supply constraints and recovering day rates stand to reward patient, high-conviction capital.
New Investments
Dalal Street did not open any new positions during Q1 2026.
Added, Trimmed, and Exited
Added
Dalal Street made modest additions to two existing positions: Alpha Metallurgical (AMR) was increased by 36,738 shares (~6.8%) and Warrior Met Coal (HCC) was nudged up by 11,000 shares (~0.6%).
What it means: Both Alpha Metallurgical (AMR) and Warrior Met Coal (HCC) are pure-play metallurgical (coking) coal producers supplying the global steelmaking industry. These are small, incremental adds rather than aggressive position-building, suggesting Mohnish Pabrai is maintaining conviction in the met coal thesis rather than dramatically sizing up. It likely reflects a view that coking coal fundamentals—driven by steel demand in developing economies—remain intact, and that the current valuation still offers an attractive margin of safety consistent with his value-investing framework.
Trimmed
Dalal Street meaningfully reduced its position in Transocean (RIG), cutting 6,647,461 shares—a reduction of roughly 24.6% of the prior holding.
What it means: Transocean (RIG) is an offshore drilling contractor, and this trim comes alongside the outright exit of fellow offshore driller Valaris (VAL) (see below), painting a clear picture of deliberate de-risking within the offshore energy services space. The position still showed a positive return during the quarter, so this could represent disciplined profit-taking as the original thesis has partially played out, or a reassessment of the risk/reward as offshore dayrates and contracting activity face uncertainty. Pabrai's "few bets, big bets" philosophy means trimming—rather than holding—when upside becomes less asymmetric is consistent with his approach to capital reallocation.
Exited
Dalal Street fully liquidated its position in Valaris (VAL), selling all 459,098 shares.
What it means: The complete exit from Valaris (VAL), another offshore drilling contractor, reinforces the pattern seen in the Transocean (RIG) trim: Mohnish Pabrai appears to be decisively stepping back from the offshore drilling sector. Whether driven by valuation (the original asymmetric upside having narrowed), a changing macro view on oil demand and capital expenditure cycles, or a desire to concentrate capital into higher-conviction ideas like the met coal names, the combined moves signal a meaningful portfolio pivot away from energy services and toward the hard-coking-coal trade.
Disclaimer: All posts are for informational purposes only. They are NOT a recommendation to buy or sell the securities discussed. Please do your own research and due diligence before investing your money.
