Tracking Mohnish Pabrai's Pabrai Funds Portfolio: Q1 2012 Update

Below is a spreadsheet that highlights Mohnish Pabrai's moves this quarter. Please check-out our SeekingAlpha column for an analysis of the moves:

Carnival of road to financial independence #43

Welcome to the May 25, 2012 edition of carnival of financial independence.

Frugal Living

Jailan Marie presents Letting go posted at Innovative Solutions For Positive Change, saying, "Letting go of the negative behaviors has been an energizing and positive life changing experience."

Dr. Dean presents 100 Words On How To Become “Well To Do!” posted at Dr. Dean's TheMillionaireNurse.com Blog, saying, "Want to be financially successful? Check out this short mantra, and repeat it daily."

Tim presents Personal Finance: How to Retire Rich on Latte’s posted at BrilliantFinances.com, saying, "If you were to invest $2 a day into your retirement instead of buying latte's you would be suprised at the result."

Passive Income

Jeremy Biberdorf presents Importance Of Diversifying Online Business posted at Modest Money, saying, "In the blink of an eye, your online business can get turned on its head. It is incredibly important that you diversify both your traffic sources and income streams."

Daniel Rosenstein presents Don’t Fall into the Student Loan Debt Trap | Miss Money Bee posted at Miss Money Bee, saying, "Student loans can be a double-edged sword. On one side, they may allow you to build a successful career, buy a beautiful house and form a family. On the other side, they can become a nightmare if you are unemployed or if your salary is too low to cover all your bills."
 

That concludes this edition. Submit your blog article to the next edition of carnival of financial independence using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

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Stock Portfolio & Watch List Updates for May 2012

Following are the activity from the previous month:

a)      Closed the following longs: Sold our Kraft (KFT) position at $38.57 for a 46% return and impact to the portfolio of 0.77%.

b)      Increased/Added the following longs: Bought Southern Copper (SCCO) at $33.27 with ~1.5% of portfolio on 05/03/2012.

c)      Long Calls: None.

d)     Long Puts: None.

e)      Shorts: Bought to cover GMCR short at $47.67 for a 5% gain and marginal impact to the portfolio.

f)       Short Calls: Our DBD covered calls were called away at 30 on 05/10/2012 for a slight loss. The net impact to the portfolio was (0.10%). Opened new covered calls on half our position in MSFT (Aug 2012 31 @ 1.02), half our position in INTC (Oct 2012 27 @ 1.67), and our entire position in CLWR (Jan 2013 1.5 @ 0.35). The trades generated cash worth roughly 0.6% of portfolio.

g)      Short Puts: 1. Wrote ABB Ltd (ABB Dec 2012 15) puts at $0.65 on 04/30/2012 with a cash-coverage requirement of ~2% of portfolio, 2. Wrote Quality Systems (QSII Sep 2012 30) puts at $2.15 on 05/08/2012 with a cash-coverage requirement of ~1.5% of portfolio, and 3. Click Software puts that we wrote (CKSW May 2012 7.5 @ 1.3) on 09/21/2011 expired worthless netting cash worth roughly 0.3% of portfolio.

The cash position in our portfolio is at 35.19%.

Long/Short Portfolio Update:

The overall portfolio is 1.84% down compared to our cost-basis.

2012 Transactions Summary:

 Excluding dividends, we have a realized gain of 8.8% in the portfolio YTD.

Option Position Updates:

Short Puts: ABB Ltd (ABB Dec 2012 15 @ 0.65) and Quality Systems (QSII Dec 2012 30 @ 2.15). The short puts together have a cash coverage requirement of about 12.8% of our cash position.

Short Calls: Nucor (NUE July 2012 43 at $2.90), Itron (ITRI Aug 2012 40 at $4.20), Quality Systems (QSII Sep 2012 45 at $2.70), Alcoa (AA Jan 2013 12.5 at $0.64), Market Vectors Gold Miners ETF (GDX Jan 2013 59 at $6), Dryships (DRYS Jan 2013 2.5 at $0.65), Microsoft (MSFT Aug 2012 31 at 31), Intel (INTC Oct 2012 27 at 1.67), and Clearwire (CLWR Jan 2013 1.5 at 0.35). The short calls account for ~17.85% of the portfolio.

Watch List: Automatic Data Processing (ADP), Air Products & Chemicals (APD), Bank of America (BAC), Beam Inc (BEAM), Bemis Company (BMS), Citigroup (C), Canon (CAJ), Dell Inc (DELL), Emerson Electric (EMR), Forest Laboratories (FRX), J. C. Penney (JCP), Jefferies Group (JEF), Kaman Corporation (KAMN), Coca Cola (KO), McGraw Hill (MHP), 3M Company (MMM), PepsiCo (PEP), State Auto Financial (STFC), Teva Pharmaceuticals (TEVA), and Whirlpool (WHR).