Mohnish Pabrai Q1 2026 Portfolio — VALARIS Fully Exited, AMR Stake Raised
Mohnish Pabrai's Dalal Street LLC reported total AUM of $423M with a highly concentrated 3-stock portfolio as of Q1 2026. He fully exited VALARIS and increased his AMR position by 7%.
- Pabrai's Q1 2026 portfolio holds $423M across 3 stocks — VALARIS fully exited, AMR raised 7%
- TRANSOCEAN cut 25%; HCC remains top holding at 39.9% of AUM
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.
Frequently Asked Questions
Which stock did Mohnish Pabrai fully exit in Q1 2026?
Mohnish Pabrai fully exited VALARIS in Q1 2026, liquidating his entire $23M position. No new positions were initiated during the quarter.
What was the biggest portfolio change for Mohnish Pabrai in Q1 2026?
The most significant changes were the complete exit of VALARIS ($23M → $0) and a 25% reduction in TRANSOCEAN ($135M). On the other hand, AMR was increased by 7% to $119M.
What is Mohnish Pabrai's largest holding?
As of Q1 2026, HCC is Pabrai's largest holding at $169M, representing 39.9% of the portfolio. It is followed by TRANSOCEAN at $135M (32.0%) and AMR at $119M (28.1%).
What is the total AUM of Dalal Street LLC?
Based on the Q1 2026 13F filing, Dalal Street LLC manages total AUM of $423M, spread across just three holdings — HCC, TRANSOCEAN, and AMR — in an ultra-concentrated portfolio structure.
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