Mohnish Pabrai's Q1 2026 13F filing revealed Dalal Street LLC's total AUM of $423M across just 3 holdings. There were no new positions initiated this quarter. Notable moves include a full exit of VALARIS ($23M), a 7% increase in AMR, and a 25% reduction in TRANSOCEAN.
Top Holdings — Q1 2026
- HCC: $169M (39.9%)
- TRANSOCEAN LTD: $135M (32.0%)
- AMR: $119M (28.1%)
Q1 2026 Key Trading Activity
Pabrai's portfolio remains in an extremely concentrated structure. Top holding HCC accounts for $169M, or roughly 40% of the portfolio, followed by TRANSOCEAN (RIG) at $135M (32.0%) and AMR at $119M (28.1%). With just three positions comprising 100% of AUM, the portfolio is a textbook expression of Pabrai's high-conviction, low-diversification investment philosophy.
- VALARIS: Full exit $23M → $0 — Complete liquidation of offshore drilling exposure; a selective retreat from the sector
- AMR: Position increased +7% ($119M) — Added to coal and mineral resources play; portfolio weight rises to 28.1%
- TRANSOCEAN (RIG): Position reduced -25% ($135M) — Broad pullback from offshore drilling, consistent with VALARIS exit
- HCC: Position slightly increased +1% ($169M) — Retains top holding status; portfolio weight holds at 39.9%
The most notable move this quarter is the complete exit of VALARIS. Pabrai fully liquidated his $23M position in the offshore driller, while simultaneously trimming TRANSOCEAN — another offshore drilling name — by 25%. In contrast, he added 7% to AMR, his coal-related holding. The overall shift points to a deliberate repositioning within the energy sector: reducing offshore drilling exposure while tilting further toward mineral and commodity resources.
Ultra-Concentrated Portfolio, Clear Directional Conviction
Even as Pabrai pares back offshore drilling exposure, his conviction in coal and resource names AMR and HCC has only strengthened. Managing $423M across just three positions magnifies single-stock risk, but equally reaffirms his core principle of betting only on the highest-conviction ideas. Key watch points for next quarter include whether TRANSOCEAN sees further cuts and whether AMR and HCC continue to grow as core positions.
