Pabrai Wagons｜年度财务及持仓报告｜2025-06-30

Turkish Airport Stock Becomes Top Holding, Indian Financial Stock Has Highest Weight

As of June 30, 2025, the Pabrai Wagons Fund had net assets of approximately $78.93 million, with 94% allocated to common stocks. The top three countries by holdings were the United States (46.1%), Turkey (25.2%), and India (24.8%). The largest single holding was Turkish airport operator TAV Havalimanlari Holding AS, with a market value of $12.66 million, representing 16.0% of net assets. Edelweiss Financial Services Ltd. from the Indian capital markets followed closely at $19.54 million (24.8%). The fund's overall investment cost was $81.87 million, with a market value of $79.01 million, resulting in an unrealized loss of approximately $2.86 million.

Industry	Market Value (USD)	% of Net Assets
Capital Markets (India)	19,542,036	24.8%
Transportation Infrastructure (Turkey)	12,662,521	16.0%
Metals & Mining (USA + Mongolia)	12,342,412	15.6%
Energy Equipment & Services (USA)	9,667,493	12.3%
Specialty Retail (USA)	7,200,919	9.1%
Household Durables (USA)	5,842,970	7.4%
Air Freight & Logistics (Turkey)	3,526,920	4.5%
Industrial REITs (Turkey)	3,711,581	4.7%
Oil, Gas & Consumable Fuels (USA)	1,974,470	2.5%
Marine (Greece)	1,436,758	1.8%
Money Market Fund	1,103,239	1.4%

Top Ten Holdings Highly Concentrated, Turkish Assets Account for Three Positions

The top five holdings collectively account for over 60% of net assets, with Turkish assets (TAV Havalimanlari, Reysas Tasimacilik, Reysas Gayrimenkul) totaling 25.2%. Among all common stocks, Edelweiss Financial Services is the only individual position exceeding 20%. The energy equipment sector comprises three stocks (Noble Corp., Tidewater, Valaris) totaling 12.3%, with balanced allocations. Warrior Met Coal, at $7.36 million (9.3%), is the largest U.S. metals and mining holding. Three auto dealers—Asbury Automotive, AutoNation, and Group 1 Automotive—together account for 9.1%, forming the specialty retail sector.

High Proportion of Non-Income-Producing Assets, Most Holdings Do Not Pay Dividends

Among the 20 common stocks, eight are designated as "Non-income producing securities," including Turkey's Reysas Tasimacilik, Tidewater, Valaris, Mongolian Mining, Alpha Metallurgical Resources, Asbury Automotive, AutoNation, and TAV Havalimanlari. This means approximately half of the fund's stock positions generate no dividends, with returns relying entirely on capital appreciation. The only income-producing asset is the money market fund (First American Treasury Obligations Fund, 7-day annualized yield of 4.24%), with a size of $1.1 million, accounting for just 1.4%.

Net Asset Structure: Investment Market Value Slightly Exceeds Liabilities

The fund's total assets are $79.57 million, total liabilities are approximately $0.638 million, and net assets are $78.93 million. Major liabilities include a non-U.S. deferred tax liability of $0.339 million, payable for investments of $0.106 million, and audit fees of $0.048 million. On the receivables side, the largest single item is $0.483 million in receivables from fund share sales, indicating recent capital inflows.

Fund Net Assets Grew 144%, Total Size Reaches $78.93 Million

As of June 30, 2025, the Pabrai Wagons Fund's net assets increased from $32.35 million at the beginning of the period to $78.93 million, a net increase of $46.58 million. The fund was established on September 29, 2023, and this period represents its first full fiscal year.

Both Share Classes Posted Positive Returns but Underperformed the Prior Period

Performance Comparison: The Institutional Class total return for the current period (FY2025) was -13.29%, compared to +24.86% in the prior period (FY2024, approximately 9 months); the Retail Class returned -13.47% for the current period versus +24.64% in the prior period. Both classes recorded losses, with the Institutional Class slightly outperforming the Retail Class.

Review of the 2020 MSCI China Tech + Semiconductor Index performance, with a cumulative annual gain of approximately 12%

Metric	Institutional Class (2025)	Institutional Class (2024)	Retail Class (2025)	Retail Class (2024)
Beginning NAV	$12.47	$10.00	$12.45	$10.00
Ending NAV	$10.69	$12.47	$10.65	$12.45
Total Return	(13.29)%	24.86%	(13.47)%	24.64%
Ending Net Assets (thousands USD)	$38,662	$18,002	$40,272	$14,352

Retail Class Net Subscriptions Far Exceed Institutional Class, Total Shares Grew 185%

Total outstanding fund shares increased from 2,596,407 to 4,801,290, a net increase of 2,204,883 shares. Net subscriptions (including reinvestments) for the Retail Class were 2,629,574 shares, and for the Institutional Class, 2,171,716 shares. In terms of redemptions, the Retail Class saw 611,732 shares redeemed, while the Institutional Class had 117,169 shares redeemed. The absolute redemption volume was higher for the Retail Class, but its proportion relative to total shares was lower.

Expense Ratio Declined Significantly, Portfolio Turnover Increased

The Institutional Class expense ratio (after reimbursements) decreased from 4.22% to 1.59% (before reimbursements) and 1.00% (after reimbursements); the Retail Class decreased from 4.74% to 1.84% (before reimbursements) and 1.25% (after reimbursements). Portfolio turnover increased from 45.34% to 69.25%, indicating higher trading activity. The Institutional Class net investment income ratio fell from 0.66% to -0.04%, and the Retail Class from 0.47% to -0.28%, with both classes turning to a net loss position.

Valuation Methodology: Three-Tier Input Hierarchy and Fair Value Measurement

The fund uses a three-tier fair value hierarchy (Level 1/2/3) to value its portfolio. As of June 30, 2025, the portfolio contained no Level 3 assets. Debt securities are valued using the average of evaluations from independent pricing services, and options are valued at the composite price based on the NBBO (National Best Bid and Offer). When market quotations are unavailable, the valuation designee appointed by the Board of Directors (Dhandho Funds LLC) performs fair value determinations according to established procedures—the author acknowledges that "fair value pricing is inherently subjective, and different funds may arrive at different values for the same security."

Valuation Hierarchy Distribution Table (as of June 30, 2025):

Asset Class	Level 1	Level 2	Level 3	Total
Common Stocks	$36,702,814	$37,493,685	$—	$74,196,499
Real Estate Investment Trusts (REITs)	$—	$3,711,581	$—	$3,711,581
Money Market Fund	$1,103,239	$—	$—	$1,103,239
Total Investments	$37,806,053	$41,205,266	$—	$79,011,319

Tax and Accounting Treatment: Tax Compliance and Foreign Currency Translation

The fund has elected to be taxed as a "regulated investment company," requiring no federal income tax provision, and as of the period end, there are no unrecognized tax risks. The fund intends to distribute at least 98.0% of its net investment income and 98.2% of its net realized capital gains annually to avoid excise taxes. Foreign currency assets and liabilities are translated at exchange rates on the valuation date. The impact of exchange rate fluctuations on investments is not separated from market price movements and is included in realized/unrealized gains and losses. Securities transactions are recognized on the trade date, dividends are recorded on the ex-dividend date, and REIT dividends may include ordinary income, capital gains, and return of capital.

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Position Moves

Ticker	Direction	Author's One-Sentence View	Key Data
TAV Havalimanlari Holding AS	Hold & Watch	Largest single position, Turkish airport operator, core holding	Market cap $12.66M, 16.0% of net assets
Edelweiss Financial Services Ltd.	Hold & Watch	Indian capital markets company, only single stock exceeding 20%, highest allocation	Market cap $19.54M, 24.8% of net assets
Warrior Met Coal	Hold & Watch	Largest U.S. metals & mining position, constitutes the metals & mining sector	Market cap $7.36M, 9.3% of net assets
Noble Corp.	Hold & Watch	One of three stocks in the energy equipment sector, balanced allocation	12.3% of net assets (combined with Tidewater and Valaris)
Tidewater	Hold & Watch	Same as above, non-income security	Same as above
Valaris	Hold & Watch	Same as above, non-income security	Same as above
Asbury Automotive	Hold & Watch	Auto dealer, specialty retail sector, non-income security	9.1% of net assets (combined with AutoNation and Group 1 Automotive)
AutoNation	Hold & Watch	Same as above	Same as above
Group 1 Automotive	Hold & Watch	Same as above	Same as above
Reysas Tasimacilik	Hold & Watch	Turkish air cargo & logistics, non-income security	4.5% of net assets
Reysas Gayrimenkul	Hold & Watch	Turkish industrial REITs	4.7% of net assets
Mongolian Mining	Hold & Watch	Mongolian metals & mining, non-income security	15.6% of net assets (combined with U.S. metals & mining)
Alpha Metallurgical Resources	Hold & Watch	U.S. metals & mining, non-income security	Same as above