The Pabrai Investment Funds (PIF) were inspired by the original 1950s Buffett Partnerships and are a close replica of the original Buffett Partnership Rules. The Pabrai Funds Managing Partner, Mohnish Pabrai, is an ardent disciple of Warren Buffett and closely follows Buffett’s principles on value investing and capital allocation. The Pabrai Investment Fund I (PIFI) was launched on 7/1/99 with $1 Million from 8 accredited individual investors. The fund has consistently beaten the Dow, Nasdaq Composite, S&P 500 indices and 99+% of mutual fund managers.

Mohnish’s stated objective of The Pabrai Investment Fund is to, over the long run, beat all three major indices and over 90% of mutual and hedge fund managers. To date, the funds have exceeded these goals. The Pabrai Investment Fund 2 (PIF2) was launched on 10/1/00 with $1 Million from 9 accredited individual investors. If you are an accredited investor and have an interest in The Pabrai Funds, please join the waiting list to get more information.

Like the original Buffett Partnerships, The Pabrai Funds have an unusual set of rules and guidelines under which it operates. The salient aspects of The Pabrai Funds are:

• All funds are managed solely by Mohnish Pabrai, the Managing Partner.
• The Pabrai Funds are only open to accredited high net worth individual investors and qualified institutions.
• The funds can invest in any publicly traded equity or debt instrument on any exchange worldwide.
• There are no Management Fees until the fund delivers an annualized 6% return to investors.
• Returns above 6% are split in a 3:1 ratio between Limited Partners and the Managing Partner after fund expenses.
• Holdings are only disclosed to the extent required by law. Limited Partners and Investors receive GAAP compliant audited financials prepared by PricewaterhouseCoopers annually.
• Redemptions are permitted once a year with at least 60 days advance notice before the December 31 redemption date. Investors can request a partial or complete withdrawal.
• Please refer to the legal documents for a complete narrative on the fund structure, rules, fees etc.