Mohnish Pabrai’s 5 Biggest Investments in 10 Years

Below we present the list of Mohnish Pabrai’s 5 Biggest Investments in 10 Years. For our methodology and a more comprehensive list please see Mohnish Pabrai’s 10 Biggest Investments in 10 Years.

5. Chesapeake Energy Corporation (NASDAQ:CHK)

Value of Pabrai Investment Funds’ 13F Position: $88.7 million (Q4 2013)

Stock Performance Since Q4 2013: +200%

Number of Hedge Fund Shareholders (Q1 2023): 60

Mohnish Pabrai had built a large stake in natural gas producer Chesapeake Energy Corporation (NASDAQ:CHK) by the end of 2013 but sold out of it during 2014. It wasn’t until Chesapeake emerged from bankruptcy protection in 2021 that the stock started to take off, doubling in value from then until the present and having tripled in value since Pabrai built his largest position in it.

Rising natural gas prices have been a major boon for Chesapeake Energy Corporation (NASDAQ:CHK) in recent years, driving the company’s cash flow higher. Thanks to its low leverage, Chesapeake is able to return much of that free cash flow to shareholders in the form of dividends (including variable dividend payouts) and buybacks. Chesapeake’s dividend currently yields over 7% and should natural gas prices continue to rise into 2024 and beyond, those dividend payouts will rise even further alongside them.

Carillon Tower Advisers laid out Chesapeake Energy Corporation (NASDAQ:CHK)’s return to prominence in its Q3 2022 investor letter:

“Chesapeake Energy Corporation (NASDAQ:CHK), a natural gas exploration and production company, emerged from bankruptcy with little fanfare in 2021, despite having rid itself of its debt burden and onerous pipeline contracts. The company was able to make two large acquisitions at very reasonable prices within its core producing areas, allowing for scale and cost savings. Then in 2022, natural gas prices began to rise well above expectations, increasing the value of Chesapeake’s large natural gas resources and production and contributing to its outperformance.”