Mohnish Pabrai

Pabrai's portfolio is now three positions and $420M—about as concentrated as a public equity fund can get. HCC (metallurgical coal, 39.9%) leads, followed by TRANSOCEAN (offshore drilling, 32.0%) and AMR (Alpha Metallurgical Resources, 28.1%), a trio united by exposure to hard commodities and capital-intensive cyclicals that most investors avoid. The only activity this quarter was a 25% trim of TRANSOCEAN and the full exit of VALARIS (5.8%)—consolidating offshore drilling exposure into a single name rather than spreading across the sector. This suggests either profit-taking discipline or a preference for RIG's specific contract book and balance sheet over VAL's. With 100% of AUM in three deep-cyclical names, Pabrai is making an unusually bold macro call on commodity demand and offshore energy capex. There is essentially no diversification buffer. Watch whether any cash raised from the RIG trim and VAL exit gets redeployed into a fourth position next quarter, or whether Pabrai sits in cash waiting for a larger dislocation.