How to Invest in Pabrai

by Matt McGew ; Updated July 27, 2017

Items you will need

  • $5,000,000 net worth
  • $2,500,500 cash

Mohnish Pabrai is the founder and manager of the Pabrai Investment Fund. The Pabrai Investment fund is a hedge fund that invests in value-oriented stocks. The fund charges no management fee unless it gains at least 6 percent in a calendar year. Once the fund hits the 6-percent threshold, the fund charges a 25-percent incentive fee on profits. You can invest in the Prabrai Investment Fund by meeting the minimum net worth requirement of $5,000,000 and investing at least the minimum required investment of $2,500,000.

Step 1

Contact the Pabrai Investment Fund at 949-453-0609 or email the fund at mp@pabraifunds.com. Request a prospectus and an application to invest in the fund.

Step 2

Carefully review the prospectus. The prospectus lays out the fund's investment strategy, lists information about the returns from previous years and lists projections of future earnings. Past performance is not a guarantee of future returns.

Step 3

Complete the application with information about your investing experience and net worth. List om the application all liquid and non-liquid assets currently held. Also list the amount of money you want to invest in the fund. As of February 2010, the minimum net worth requirement is $5,000,000 and the minimum initial cash investment is $2,500,000. Mail the completed application to the address listed on the application.

Step 4

Schedule an appointment with a fund representative. After the fund receives the application, a representative from the fund will contact you to schedule an appointment either over the phone or in person. During the appointment, the representative will go over information from the prospectus and answer any questions you may have.

Step 5

Wire funds to invest in the Pabrai Investment Funds. Once your application is approved, the fund will give you wiring instructions for your initial investment.

About the Author

Since 1992 Matt McGew has provided content for on and offline businesses and publications. Previous work has appeared in the "Los Angeles Times," Travelocity and "GQ Magazine." McGew specializes in search engine optimization and has a Master of Arts in journalism from New York University.