Mohnish Pabrai Still Likes Automotive Stocks, Goes Into Aircraft Leasing

Dalal Street’s stake in Ferrari NV (NYSE:RACE) amassed 14.69% of its equity portfolio, containing 1.07 million shares, down by some 208,200 shares over the quarter. The value of the position amounted to $43.52 million. In the second quarter, Ferrari’s net revenue grew by 5.9% to 811 million euro ($904 million), while earnings for the quarter came in at 0.55 euro ($0.61) per share. Heading into the third quarter, 17 investors we track were long Ferrari’s stock, holding $288.70 million worth of shares, down from 19 funds with stakes worth $318.80 million a quarter earlier.

Alphabet Inc (NASDAQ:GOOG)  is next in line with Dalal Street holding 69,188 class C shares worth $47.88 million. Earlier this week, Alphabet announced that it will release its third-quarter results on October 27 and analysts expect the tech giant to report earnings of $8.64 per share on revenue of $22.04 billion. The number of funds holding shares of Alphabet’s class C stock declined to 126 from 142 during the second quarter, while the value of their positions slid to $11.20 billion from $14.90 billion. 

Fiat Chrysler Automobiles NV (NYSE:FCAU) represented Pabrai’s biggest holding at the end of the second quarter. The fund held 13.78 million shares of Fiat Chrysler valued at $84.36 million at the end of June. The position amassed over 32% of the equity portfolio. Fiat Chrysler recently has announced that it is recalling 1.9 million cars due to airbag defects. The vehicles are being recalled worldwide after the airbag defect was linked to three deaths and five injuries. The recall put more pressure on the stock, which is already down by more than 54% year-to-date. Among the funds we track Insider Monkey, 27 held $534.79 million worth of Fiat Chrysler shares at the end of June, compared to 28 funds that held $645.66 million worth of stock a quarter earlier.

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