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Mohnish Pabrai Good side

Over a term of five years or more, his funds have

consistently surpassed the major indexes by a handsome

margin. This out-performance was huge during the early

years (1999 to 2004)

Pabrai is among the minority managers that run

concentrated portfolios making large bets on a small

number of stocks - many investors consider his selections

as good hunting-ground, when looking to add to their own

portfolios

special situations investing decisions, idea of 

concentrated bets, expertise in valuing businesses

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Mohnish Pabrai Good side

Highlights of his portfolio:

Stewart Enterprises (STEI), Level 3 Convertible Bonds,

Frontline, Tesoro Petroleum , Fremont General, Ternium,

Sears, Fairfax Financial, Teck Cominco, Pinnacle Airlines aresome of the stocks in his portfolio that performed

exceedingly well during his initial years

The positions in Air Transport Services, Horsehead Holding,

Pinnacle Airlines Corp, and Teck Cominco returned well over

200% each for the time period 2008 end to 2009 completion

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Mohnish Pabrai Bad side

Mohnishs assets have performed really poorly in Q2 2011

making him second in the 10 worst performing star hedge

fund managers of the world

M

ohnish Pabrai had three securities in two S&P 500 stocks:Wells Fargo (WFC) and Goldman Sachs (GS). During the

quarter:

Goldman Sachs lost 15.9%

WFC lost 11.1%

As a result Pabrais value weighted return was -13.9%

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Mohnish Pabrai Ugly side

Mohnish Pabrais Investment Fund had a free fall in 2008

when it disgracefully lost 60% of its value. Some of the

factors that led to these losses:

The 10x10 portfolio allocation resulted in a small numberof huge concentrated bets. This lack of diversification is

naturally more volatile than the overall market.

Pabrais portfolio sported a small-cap bias that sent his

picks downhill faster in a bear market or uphill sooner in a

bull market than the overall market.

Pabrai had huge bets on a couple of highly leveraged

small-cap financial companies that went bankrupt.