Mohnish Pabrai’s Latest Portfolio: Big Bets on Coal, Energy, and Cyclical Recovery
Sunday, February 22, 2026 · Johnny Hopkins
Mohnish Pabrai’s Dalal Street LLC reported an equity portfolio of approximately $402 million in the latest quarter, maintaining its signature high-conviction, concentrated value investing approach. The portfolio remains heavily focused on a small group of cyclical commodity and energy services companies, particularly coal producers and offshore drilling firms — areas where Pabrai has historically sought asymmetric upside tied to industry cycles and capital scarcity.
The latest filing suggests selective position adjustments rather than a major strategic shift. While one legacy energy holding was fully exited, incremental additions to core positions indicate continued conviction in energy-linked equities despite recent volatility.
Dalal Street continues to prioritize deep value opportunities with substantial cyclical leverage, consistent with Pabrai’s long-standing philosophy of concentrated bets where downside appears limited relative to potential upside.
Portfolio Snapshot
Total Portfolio Value: ~$402M
Top 10 Weight: ~100% (extremely concentrated)
Turnover: Low–Moderate — selective adds and one exit
Top Holdings & Weights
| Company | Ticker | Value | Portfolio % |
|---|---|---|---|
| Warrior Met Coal | HCC | ~$158.7M | ~39.5% |
| Transocean | RIG | ~$111.7M | ~27.8% |
| Alpha Metallurgical Resources | AMR | ~$108.5M | ~27.0% |
| Valaris | VAL | ~$23.1M | ~5.8% |
Biggest Changes Last Quarter
Notable Adds
Transocean (RIG):
Shares increased by ~2.6M (~+10.6%)
→ Suggests continued conviction in offshore drilling recovery and tightening rig supply.
Alpha Metallurgical Resources (AMR):
Small increase (~+2%)
→ Likely incremental accumulation within an existing high-conviction metallurgical coal thesis.
Major Trim
Valaris (VAL):
Shares reduced by ~607k (~-57%)
→ Appears to be profit-taking or position rebalancing within offshore drilling exposure rather than a full exit.
Stable Core Position
Warrior Met Coal (HCC):
No reported change
→ Remains the largest single holding, reflecting strong conviction in metallurgical coal fundamentals.
Full Exits Last Quarter
Noble Corp (NE):
Previous value ~$6.8M — position fully exited.
→ Consolidation within offshore drilling exposure, possibly favoring higher-conviction operators.
Portfolio Characteristics
Style: Deep Value / Concentrated Cyclical Bets
Holding Period: Typically multi-year
Turnover: Generally low, opportunistic adjustments
Sector Exposure:
-
Metallurgical coal producers (dominant weight)
-
Offshore oil drilling contractors
-
Energy services cyclicals
Geographic Exposure:
-
Primarily U.S.-listed global commodity businesses
-
Revenues tied to global energy and steel demand cycles
Summary
Dalal Street’s latest filing reinforces Mohnish Pabrai’s reputation for high-conviction, concentrated value investing with strong cyclical tilts. The portfolio is heavily exposed to metallurgical coal and offshore drilling — sectors characterized by supply constraints, volatile pricing, and potentially significant upside during favorable commodity cycles.
Recent activity suggests portfolio refinement rather than repositioning: incremental additions to core holdings, a meaningful trim in Valaris, and a full exit from Noble Corp. Overall, the strategy remains consistent with Pabrai’s long-standing approach — focus capital where downside appears limited, maintain concentration, and allow cyclical value realization to play out over time.