market folly

Whitney Tilson of hedge fund T2 Partners recently appeared on television to give his thoughts on the market and some of his positions. Specifically, he notes that they are still short Palm (PALM) and expect further downside to come. However, it is obviously a smaller sized position for them than it once was given the precipitous fall it's seen lately. We've also previously gotten a look at some of T2's other short positions.

Turning to General Growth Properties (GGP), Tilson argues that there is essentially a 'floor' here at $15 because there is a credible bid for the company at this level on top of Simon Property Group's previous bid at $9. So, the risk/reward skew is favorable here and he ultimately thinks someone will make a higher bid. Many other hedgies and prominent investors own shares and debt of this name as Bill Ackman's Pershing Square is one of the largest owners. Bruce Berkowitz's Fairholme Fund is also the largest unsecured creditor. Berkowitz and Ackman both recently teamed up to help provide funding for the latest proposed GGP bid.

Turning next to his position in Pfizer (PFE), Tilson argues that PFE is attractive because it is trading at less than 10x earnings and has a solid 4% dividend. Many other hedgies agree as we've seen Pfizer is one of the most popular holdings among hedge funds.

Embedded below is the video of T2 Partners' Whitney Tilson. RSS & Email readers will need to come to the site to view the video:



For more from Tilson and his hedge fund, head to T2's annual letter, as well as his presentation of three stock picks. Both Tilson and Berkowitz will be presenting investment ideas at the upcoming Value Investing Congress and we've secured a discount for our readers here.