This presentation explains how the Pabrai Wagons ETF seeks out overlooked companies and holds them concentrated for the long term. The six core allocations total approximately 82%, primarily comprising offshore oil services (21%), Reysas (19%), and Mark Leonard-related companies (13%). The author discusses drilling vessel supply constraints, warehouse asset valuations, and Edelweiss’s spin-off plans; these are judgments from the position holders, with some forecasts relying on specific conditions.
At a Glance The Pabrai Wagons ETF demonstrates its concentrated investment philosophy and six core allocations: offshore oil services 21%, Reysas 19%, Mark Leonard-related companies 13%, metallurgical coal 12%, financial services 11%, and TAV Airports 6%. The report discusses supply constraints, ass
The Pabrai Wagons ETF outlines its strategy of concentrated global equity investing: focusing on long-term investments in the highest-conviction businesses, seeking opportunities in market corners deemed mispriced or overlooked by the author. The author's three principles are: retain excellent businesses; do not overpay for excellent businesses; and seek wide moats, superior management, and long growth runways. These represent the fund's investment philosophy and cannot be equated with current income promises.
The presentation uses Berkshire Hathaway to illustrate the importance of a few key decisions: over 58 years, there were more than 80 corporate acquisitions, over 210 common stock investments, and more than 10 significant personnel appointments, totaling over 300 decisions. The presentation cites Buffett's retrospective, attributing the main results to roughly 12 truly outstanding decisions, about 4%. This is an analogy for concentrated investing and does not guarantee the fund will replicate Berkshire's historical performance.
The text states that seven large-cap tech companies account for roughly 35% of the S&P 500, with a weighted forward P/E of about 26x. Citing examples like Google's search and Android, Apple's iPhone ecosystem, Meta's social platforms, Tesla's electric vehicles, and Microsoft's Windows ecosystem, the author believes that previously relatively independent areas of advantage are being altered by direct competition from AI and rising capital expenditures, making future winners harder to determine. The seven companies also include Amazon and NVIDIA. These are the author's assessments of the competitive landscape. The presentation states that as of September 30, 2026, WAGN's holdings had no overlap with the S&P 500.
As of September 30, 2026, the fund's performance is as follows (Currency: USD, Total Return Basis):
| Period | WAGN NAV | WAGN Market Price | S&P 500 Total Return Index |
|---|---|---|---|
| 1 Month | -8.21% | -8.32% | -0.35% |
| 3 Months | 8.55% | 8.14% | 2.30% |
| 6 Months | 6.60% | 5.49% | 17.85% |
| Year-to-Date | 21.70% | 21.87% | 12.75% |
| 1 Year | 29.28% | 29.46% | 15.74% |
| Since Inception (Annualized) | 14.84% | 14.89% | 22.87% |
Note: Fund inception date is September 29, 2023.
As of September 30, 2026, weight as a percentage of fund net assets; countries follow the presentation labels.
| Company | Country | Weight |
|---|---|---|
| Reysas REIT | Turkey | 15.7% |
| Warrior Met Coal | USA | 8.0% |
| Transocean | USA | 7.7% |
| Edelweiss Financial Services | India | 7.4% |
| Gimat | Turkey | 5.9% |
| TAV Airports | Turkey | 5.8% |
| Danaos | Greece | 4.7% |
| Kaspi.KZ | Kazakhstan | 4.6% |
| Odfjell Drilling | Norway | 4.5% |
| Valaris | USA | 4.4% |
The text states that the six allocation groups together account for approximately 82% of the portfolio. The proportions below have been verified against the chart on page 14 of the original PDF.
| Group | Region (Text) | Approx. % of Portfolio |
|---|---|---|
| Offshore Oil Services | USA, Norway | 21% |
| Reysas | Turkey | 19% |
| Mark Leonard-Related Companies | Canada, EU | 13% |
| Met Coal | USA | 12% |
| Financial Services | India | 11% |
| TAV Airports | Turkey | 6% |
This set of thematic buckets and the top 10 holdings listed by individual company represent different statistical scopes.
The fund states it holds four offshore oil service positions. Offshore production accounts for roughly one-third of global oil and gas output, with breakeven levels lower than extraction methods like shale oil. The author argues that drilling ships are complex and expensive to build, new supply is currently lacking, and the related stocks trade at a discount to replacement value.
The author's conditions for building a new Generation 8 drillship are: delivery typically takes at least 5 years, costs exceed $1 billion, with approximately 50% prepayment; to make new build CapEx viable, dayrates might need to exceed $1 million and be sustained for over 20 years, more than double current dayrates. Based on these conditions, the author projects that annual free cash flow for Transocean, Valaris, and Noble could increase significantly, exceeding $1 billion. This figure is a forecast dependent on dayrate conditions, not realized profits or cash flows.
The text introduces the logistics parent company Reysas, which holds approximately a 62% stake in Reysas REIT. The REIT owns over 12 million square feet of Grade A warehouses in Turkey. The logistics business also involves rooftop solar power generation and vehicle inspection with long-term government concessions. The author views operations, capital allocation, and recurring revenue as its key attractions.
As of September 30, 2026, the text lists Reysas REIT's market cap at approximately $2 billion. The author estimates the liquidation value of its asset portfolio exceeds $2.5 billion. Liquidation value is an estimate by the position holder and cannot be considered a guaranteed exit price.
The author views Constellation Software as a compounder in acquiring and operating vertical market software, and discusses its spin-offs Topicus and Lumine. The author believes the sell-off in AI-related software stocks may be misguided, arguing that AI could instead benefit these existing enterprises. This paragraph expresses the position holder's view on competitive advantages; the text provides no quantified AI-related gains already realized.
The fund states it holds two met coal companies, believing their costs are near the lowest quartile of the industry, with high-quality reserves, and that steel production will find it difficult to fully replace met coal for decades. Warrior Met Coal is listed in the top 10 holdings.
The author also discusses Alpha Metallurgical Resources: the company returns capital to investors via buybacks, reducing its fully diluted share count by approximately 32% over the four years since 2022. The presentation compares this to Apple, Microsoft, Alphabet, and Meta, which reduced shares by 11%, 2%, 9%, and 7% respectively over the same period. The author projects Alpha could retire over 70% more shares in the next decade before shifting to dividends. This is a forward-looking judgment, not a confirmed execution plan.
The author states that Indian financial services group Edelweiss Financial Services has a market cap of about $1.4 billion and plans to demerge at least four subsidiaries over the next 5 to 6 years. The author estimates each could have a market cap between $500 million and $1.5 billion at the time of demerger. The first expected entity is its wholly-owned alternative asset management business, with an IPO valuation estimated at around $1 billion to $1.5 billion.
These figures are the author's projections for future demerger and listing valuations. They cannot be summed up as currently realizable asset values, nor do they indicate the demergers have been completed.
TAV Airports operates 15 airports across 8 countries. The author believes it has high operating leverage: if passenger traffic grows 6% to 9% annually, cash flow growth could more than double that rate. The text also discusses the duty-free business ATU, ground handling Havas, and airport software TAV Technologies, suggesting these businesses may have significant standalone value.
In 2021, TAV acquired an 85% stake in Almaty International Airport in Kazakhstan for an equity investment of $120 million. In 2025, the airport's EBITDA attributable to TAV was $112 million. EBITDA is earnings before interest, taxes, depreciation, and amortization, and cannot be directly equated to net profit or distributable cash to shareholders. The text mentions that Harvard Business School has written a case study on TAV and the Almaty transaction to support its discussion of capital allocation.
The predecessor mutual fund operated since September 29, 2023. The ETF assumed the accounting and performance history of its institutional share class. Performance prior to February 6, 2026, belongs to the predecessor fund. The ETF began trading on the NYSE on February 9, 2026, and subsequently moved to NYSE Arca. The text states that the manager, investment objective, and strategy remain continuous. The ETF replaced the original institutional and retail share classes with a single share class, with a management fee of 0.90%.
The author believes the ETF structure may improve fees, transparency, tax efficiency, and trading accessibility. The text uses the difference between limit orders and market orders to illustrate trade execution. The above are product descriptions and the author's views, and do not imply that the ETF structure eliminates risks associated with concentrated holdings, non-US markets, small/mid-cap stocks, or premiums/discounts in the secondary market.