This report covers Pabrai Wagons fund's year ending June 2026. The fund just converted to an ETF (exchange-traded fund, like a stock), doubling its size to $212.7 million with a 28.90% return. The author is cautiously optimistic: performance is good, but net investment income was only $69,179, almost all gains came from unrealized appreciation (price increases), while fees were $1.26 million. No specific stock holdings are highlighted.
One-sentence summary of the author’s market view for this period: The fund completed its conversion to an ETF, achieving growth in both scale and performance, but net investment income was extremely low, with performance primarily driven by unrealized appreciation. [Cautiously Optimistic]
As of June 30, 2026, the Pabrai Wagons ETF had net assets of $212,744,904, with a NAV per share of $13.69, and a net increase from operations of $19,211,014 for the fiscal year.
Total investment income for the fiscal year was $1,330,628. After deducting net expenses of $1,261,449, net investment income was only $69,179.
| Item | Amount (USD) |
|---|---|
| Dividend Income (Unaffiliated) | 1,419,965 |
| Dividend Withholding Tax | (90,106) |
| Other Income | 769 |
| Total Investment Income | 1,330,628 |
| Investment Advisory Fees | 1,130,111 |
| Distribution Fees | 72,167 |
| Fund Administration and Accounting Fees | 69,166 |
| Other Expenses | 243,413 |
| Total Expenses | 1,514,857 |
| Advisory Fee Waiver | (253,408) |
| Net Expenses | 1,261,449 |
| Net Investment Income | 69,179 |
Total realized and unrealized gains amounted to $19,141,835, with unrealized appreciation contributing $17,109,133, which was the primary source of performance.
| Item | Amount (USD) |
|---|---|
| Realized Gain on Investments | 2,171,933 |
| Realized Foreign Currency Loss | (139,231) |
| Net Realized Gain | 2,032,702 |
| Unrealized Appreciation (Unaffiliated Investments) | 11,649,228 |
| Unrealized Appreciation (Affiliated Investments) | 5,452,272 |
| Change in Deferred Foreign Capital Gains Tax | 6,649 |
| Change in Foreign Currency Translation | 984 |
| Net Unrealized Appreciation | 17,109,133 |
| Net Realized + Unrealized Gain | 19,141,835 |
The net increase from operations for the fiscal year was $19,211,014, and net capital inflows were $70,552,699 (including $64.01 million from Retail Class conversions to Institutional Class), leading to a significant increase in total net assets.
| Item | 2026 (USD) | 2025 (USD) |
|---|---|---|
| Net Increase (Decrease) from Operations | 19,211,014 | (5,495,746) |
| Distributions to Shareholders | (647,228) | (531,520) |
| Net Increase (Decrease) from Capital Transactions | 70,552,699 | 24,003,557 |
| Change in Net Assets | 89,116,485 | 17,976,291 |
At the end of fiscal year 2026, the Pabrai Wagons ETF had net assets of $212.7 million, a 169% increase from $78.93 million at the end of the prior fiscal year, primarily driven by 6.62 million new ETF subscriptions from the conversion and large-scale exchanges into Institutional Class shares.
Performance Comparison: For the fiscal year 2026 (ended June 30), the fund's total return was 28.90% (NAV increased from $10.69 to $13.69), compared to 24.86% in fiscal 2025 and -13.29% in fiscal 2024 (from inception to June 30, 2024).
Capital Transaction Changes:
| Item | Fiscal 2026 | Fiscal 2025 |
|---|---|---|
| Institutional Class Net Subscriptions (USD) | -51,767,248 | 28,603,541 |
| ETF Net Subscriptions (USD) | 96,461,429 | — |
| Net Increase in Net Assets (USD) | 133,810,666 | 46,579,832 |
Share Transaction Details:
| Share Class | Net Change Fiscal 2026 | Net Change Fiscal 2025 |
|---|---|---|
| Institutional Class | +5,305,739 shares | +2,171,716 shares |
| Retail Class | -3,782,622 shares | +2,629,574 shares |
| ETF | +6,620,000 shares | — |
| Total | +8,143,118 shares | +4,801,290 shares |
Key Restructuring Milestones:
Expenses and Turnover:
| Metric | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
|---|---|---|---|
| Gross Expense Ratio (before waivers) | 1.08% | 1.59% | 4.22% |
| Net Expense Ratio (after waivers) | 0.94% | 1.00% | 1.01% |
| Net Investment Income Ratio | 0.07% | (0.04%) | 0.66% |
| Portfolio Turnover Rate | 40% | 69% | 45% |
Fund Organization Note: The fund is a non-diversified series of the Professionally Managed Portfolios trust, registered as an open-end management investment company under the 1940 Act. The investment objective is long-term capital appreciation. Mohnish Pabrai serves as the chief operating decision maker, regularly monitoring income, expenses, assets, and performance.
The Pabrai Wagons Fund (Predecessor Fund) completed a tax-free reorganization after market close on February 6, 2026, merging entirely into the newly formed Pabrai Wagons ETF (Acquiring Fund). The reorganization was executed in three steps: ① The Acquiring Fund exchanged an equivalent value of its ETF shares for all assets and liabilities of the Predecessor Fund (fractional shares were paid in cash); ② ETF shares were distributed pro rata to shareholders of the Predecessor Fund; ③ The Predecessor Fund was liquidated and dissolved. The Acquiring Fund succeeded to the accounting and performance records of the Predecessor Fund's Institutional Class, having no performance history of its own prior to the reorganization. The cost basis of investments was carried forward to maintain consistency in realized/unrealized gains and losses and tax distributions. The net assets transferred in the reorganization were as follows:
| Item | Amount |
|---|---|
| Shares Issued to Predecessor Fund Shareholders | 8,920,814 shares |
| Combined Net Assets | $122,457,265 |
| Tax Status | Non-taxable |
| Predecessor Fund Net Assets (Transferred) | $122,457,265 |
Note: Net assets included accumulated net investment loss of $(310,396), accumulated realized gains of $313,661, and unrealized appreciation of $21,228,254. Prior to the reorganization's effective date, the Predecessor Fund's Retail Class shares were converted to Institutional Class shares on January 23, 2026, to facilitate the transaction. The new fund issues only a single class of shares.
The fund follows U.S. GAAP, measuring its investment portfolio at fair value and categorizing inputs into three levels based on observability. As of June 30, 2026, all investments were classified as Level 1 (quoted prices in active markets), with no Level 2 or Level 3 assets. Specific valuation methods include: equity securities (including REITs, BDCs, MLPs) are priced at the closing price on the primary exchange or the mean of bid/ask quotes; debt securities are priced by independent pricing services using models such as matrix pricing; exchange-traded options are priced using the composite price from the National Best Bid and Offer (NBBO). The Board has designated Dhandho Funds LLC (the advisor) as the valuation officer, responsible for fair value determinations of securities without market quotations.
The fund has elected to be taxed as a "regulated investment company" and intends to distribute substantially all of its taxable income to shareholders; therefore, no provision for federal income or excise taxes has been made. To avoid excise taxes, the fund commits to distributing at least 98.0% of its net investment income and at least 98.2% of its realized capital gains (for the 12-month period ending October 31) each calendar year, plus any previously undistributed amounts. As of June 30, 2026, the fund had no late-year loss carryforwards but deferred $211,218 in post-October losses. For foreign currency, the fund does not separate exchange rate fluctuations from security price movements; all foreign currency gains and losses are included in net realized/unrealized gains on investments.
| Ticker | Direction | Author's One-Sentence View | Key Data |
|---|---|---|---|
| Pabrai Wagons ETF (Fund itself) | Hold and Observe | Post-transformation, both scale and performance have risen, but net investment income is extremely low, relying on unrealized appreciation | Net assets $212.7 million, total return 28.90%, net investment income $69,179 |