Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Fiat Chrysler Automobiles NV (FCAU), General Motors Company (GM), and Google Inc (GOOG), among Mohnish Pabrai’s Top Picks

Page 1 of 2

Mohnish Pabrai was widely known for his entrepreneurial activities, but he later switched to funds management, where he has registered enormous success over the years. He founded Dalal Street, a hedge fund, through which he manages money for investors. Mohnish Pabrai tries to employ Warren Buffett’s investment approach and his fund also has a fee structure and there is no management fees levied on investments, taking only 25% of returns. Started only with $1 million in assets under management in 1999, the fund has an equity portfolio of $535.88 million at the end of March, down by $16.53 million from the fourth quarter of 2014. In this article, we consider its top picks for the first quarter, namely, Fiat Chrysler Automobiles NV (NYSE:FCAU), General Motors Company (NYSE:GM), HORSEHEAD HOLDING CORP. (NASDAQ:ZINC), POSCO (ADR) (NYSE:PKX), and Google Inc (NASDAQ:GOOG).


Mohnish Pabrai is just one of more than 700 hedge funds that we have in our database, whose equity portfolios we collate quarterly as part of our small-cap strategy. Even though most smaller investors believe that tracking 13F filings is a fruitless endeavor because they are filed with a delay of a maximum of 45 days after the end of a calendar quarter, the results of our research prove that is not the case. To be on the safe side, we used a delay of 60 days in our back tests that involved 13F filings between 1999 and 2012 and we still managed to gain an annual alpha in the double digits. Moreover, since the official launch of our strategy in August 2012, our small-cap strategy has obtained returns of more than 144%, beating the S&P 500 Total Return Index by greater than 84 percentage points (see the details).

Fiat Chrysler Automobiles NV (NYSE:FCAU) represents Pabrai’s largest position, which contains 13.80 million shares valued at $225.08 million. The Italian-American company, which ranks on the seventh spot among global automakers, is currently facing a recall problem that is likely to affect up to 3,900 Fiat 500e vehicles manufactured between 2013 through 2015. The vehicles are reported to have a problem with the control units. This was not the first time that Fiat Chrysler Automobiles NV (NYSE:FCAU) has recalled this vehicle, having done so twice this year over software malfunction. For the first quarter of 2015, the company posted EPS of $0.05, missing the estimates by $0.02. A couple of days ago, Barclays reiterated their ‘Overweight’ rating on the stock. Analysts expect that the automaker will post earnings per share of $0.87 for the current fiscal year. Other shareholders of Fiat Chrysler include Cliff Asness‘ AQR Capital Management and Ken Heebner’s Capital Growth Management, owning 8.72 million shares and 6.38 million shares respectively.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!