Monish Pabrai is a well-known value investor who is often interviewed. He recently launched an actively managed ETF: WAGN listed on NASDAQ. After watching the interview and hearing about the ETF, I was curious about his performance. I found online his investor letter from 2020. PIF2, which started in 2000, returned 15.4% per year up to 2019 compared to the S&P 500's 7.1%. This sounds good, but the fund had extreme volatility, and so its information ratio was 0.54 compared to 0.48 for the S&P 500. You might still want to invest on this basis but PIF3, which started in 2002 returned 10.3% vs 8.2% for the S&P 500 with even higher volatility and PIF4 underperformed the S&P 500 also with extreme volatility. PIF4 has continued this pattern since 2020. The mutual fund and ETF have done well since inception in 2023 but I think it is likely that this pattern of high volatility continues. So, for now, I decided not to invest.
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