This is the annual update for the Pabrai Wagons fund (ticker WAGN). The fund returned 28.9% over the past year, beating the S&P 500. The manager says the portfolio is now optimized for its highest-conviction holdings and plans to hold them long-term. The top six buckets make up about 78% of the portfolio, including global offshore oil services (Transocean), Indian financial services (Edelweiss Financial Services), and US met coal (Warrior Met Coal). In February 2026, the fund converted from a mutual fund to an ETF, lowering fees.
One-sentence summary of the author's current market view: The portfolio has been optimized to maximum conviction, holding high-quality global companies at deep discounts for the long term, with a [bullish] stance.
WAGN delivered a NAV return of 28.90% during the period from July 1, 2025, to June 30, 2026, surpassing the S&P 500's 22.32%. Its year-to-date return (as of June 30, 2026) of 12.02% also exceeded the index's 10.21%. Since its inception (September 29, 2023), the annualized return stands at 12.87%, still trailing the index's 24.15%. The report argues that the current portfolio has been optimized to achieve long-term capital appreciation and plans to hold its highest-conviction positions for the long term.
The portfolio consists of 19 high-discount global quality enterprises, with the top six buckets totaling approximately 78%. The author's original statement: "Six buckets make up approx. 78% of the portfolio. These buckets consist of businesses whose long-term prospects are bright, but whose present market values represent significant dislocations from their intrinsic value."
| Bucket | Allocation |
|---|---|
| Global Offshore Oilfield Services | 18% |
| Indian Financial Services | 14% |
| Mark Leonard Complex (Canada & EU) | 14% |
| U.S. Metallurgical Coal | 14% |
| Reysas Group (Turkey) | 9% |
| TAV Airports (Turkey) | 9% |
As of June 30, 2026, the top ten holdings are highly concentrated, with the top five accounting for approximately 44% of the portfolio.
| Rank | Holding | % of Net Assets |
|---|---|---|
| 1 | Warrior Met Coal, Inc. | 9.7% |
| 2 | Transocean Ltd. | 9.5% |
| 3 | Edelweiss Financial Services Ltd. | 8.7% |
| 4 | TAV Havalimanlari Holding AS | 8.5% |
| 5 | Gimat Magazacilik Sanayi Ve Ticaret AS | 7.6% |
| 6 | Nuvama Wealth Management Ltd. | 5.0% |
| 7 | Kaspi.KZ JSC | 4.9% |
| 8 | Reysas Gayrimenkul Yatirim Ortakligi AS | 4.7% |
| 9 | Danaos Corp. | 4.6% |
| 10 | Topicus.com, Inc. | 4.6% |
Financials (18.6%), Energy (18.2%), and Industrials (17.4%) are the top three sectors, together exceeding 54%. Materials (14.3%) and Information Technology (14.2%) follow closely, with cash and other items accounting for only 0.5%.
On February 9, 2026, the former mutual fund Pabrai Wagons Fund was converted into an ETF via a tax-free reorganization. Previously, the retail class (WAGNX) had a net expense ratio of 1.25%, and the institutional class (WGNIX) was 1.00%. Post-restructuring, the ETF (WAGN) adopts a uniform expense ratio of 0.90%, resulting in lower actual costs for shareholders. The portfolio turnover rate is 40%, and net assets are approximately $212.7 million.
| Ticker | Direction | Author's One-Sentence View | Key Data |
|---|---|---|---|
| Warrior Met Coal, Inc. | Hold & Watch | Largest holding, core of U.S. met coal sector | 9.7% of net assets |
| Transocean Ltd. | Hold & Watch | Core of global offshore oil services sector, bright long-term outlook but market cap misalignment | 9.5% of net assets |
| Edelweiss Financial Services Ltd. | Hold & Watch | Representative of India's financial services sector, favorable long-term outlook | 8.7% of net assets |
| TAV Havalimanlari Holding AS | Hold & Watch | Turkish airport operator, bright long-term outlook | 8.5% of net assets |
| Gimat Magazacilik Sanayi Ve Ticaret AS | Hold & Watch | Under Reysas Group, related to Turkish retail/real estate | 7.6% of net assets |
| Nuvama Wealth Management Ltd. | Hold & Watch | Another holding in India's financial services sector | 5.0% of net assets |
| Kaspi.KZ JSC | Hold & Watch | Kazakhstan fintech, favorable long-term outlook | 4.9% of net assets |
| Reysas Gayrimenkul Yatirim Ortakligi AS | Hold & Watch | Turkish real estate investment trust, part of Reysas Group | 4.7% of net assets |
| Danaos Corp. | Hold & Watch | Shipping/industrial sector, bright long-term outlook | 4.6% of net assets |
| Topicus.com, Inc. | Hold & Watch | Part of Mark Leonard Complex (Canada & EU) | 4.6% of net assets |