market folly

Whitney Tilson and Glenn Tongue's hedge fund T2 Partners is out with their August letter to investors. In it, we see that they're up 12.3% net for the year compared to the S&P -2.1%. Some of their long positions that have performed well include: Osteotech, Resource America, Liberty Acquisition (warrants), and Wesco. On the short side of the portfolio, they found success in homebuilders, for-profit education plays, Ambac, and Lululemon Athletica (LULU).

Tilson's hedge fund has been positioned conservatively as they see an unfavorable economic outlook. Their letter takes a closer look at their position in Liberty Acquisitions warrants which you can read below. Tilson then confirms that they've added to their bearish bet against InterOil (IOC) after the company reported second quarter earnings. He also goes into detail about his rationale behind this short in the embedded letter below:



You can download a .pdf copy here.

Tilson and Tongue will be presenting their latest investment ideas at the upcoming Value Investing Congress in New York City on October 12th & 13th. Market Folly readers can receive a discount to the event here.