Mohnish Pabrai Slims Alphabet, AerCap Holdings
- By Holly LaFon
Mohnish Pabrai (Trades, Portfolio), managing partner of Dalal Street LLC, which operates as Pabrai Investment Funds, reported Wednesday that he chopped positions in two out of just five of his holdings.
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The intrinsic value of AER
Pabrai's Dalal Street counted $617.8 million in assets under management as of Jan. 2016 after starting the funds in 1999 with $1 million. The funds invest in both U.S. and non-U.S. securities, and three of his portfolio's holdings are based in Italy, Ireland and the U.K. Fiat Chrysler Automobiles (FCAU), a U.K.-based car company, dominates at 60.6% of the portfolio.
In the fourth quarter, he snipped positions in AerCap Holdings NV (AER) and Alphabet Inc. (GOOG).
AerCap Holdings NV
Pabrai reduced 22.87% of his position in AerCap Holdings, selling 239,439 shares. After the sale, he retained 807,721 shares, which composed 11% of the portfolio. Given his start date for the position of second-quarter 2016 and subsequent purchases, Pabrai had an estimated gain of 28% on AerCap Holdings.
Aercap Holdings NV has a market cap of $8.32 billion; its shares were traded around $52.66 Wednesday with a P/E ratio of 7.81 and P/S ratio of 1.80. Aercap Holdings NV had an annual average earnings growth of 14.40% over the past 10 years.
Alphabet Inc.
Pabrai exited 30.8% of his Google holding, selling 20,400 shares and retaining 45,828. Alphabet shares traded for $1,018 on average in the fourth quarter. Since beginning the position in the fourth quarter of 2014, Pabrai has enjoyed an estimated gain of 94% on Alphabet.
Alphabet Inc. has a market cap of $740.46 billion; its shares were traded around $1,063.93 Wednesday with a P/E ratio of 59.45 and P/S ratio of 6.87. Alphabet Inc. had an annual average earnings growth of 16.60% over the past 10 years. GuruFocus rated Alphabet Inc. the business predictability rank of 3-star.
See Mohnish Pabrai (Trades, Portfolio)'s portfolio here.
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 4 Warning Sign with AER. Click here to check it out.
The intrinsic value of AER
