market folly

Whitney Tilson and Glenn Tongue's hedge fund T2 Partners recently held their quarterly conference call and in it we get some meaningful updates to their portfolio. For the year, they're up over 13% versus a 7.9% return on the S&P 500. Most notably, they reveal their "fairly sizable" short position in Capital One (COF) as they feel the company will see putback risk in their mortgage portfolio from the GreenPoint acquisition a couple years ago.

Here are T2 Partners' largest short positions:

1. Capital One (COF)
2. DineEquity (DIN)
3. GameStop (GME)
4. A basket of for-profit education plays
5. Lululemon Athletica (LULU)
6. Homebuilders via exchange traded fund XHB
7. Moody's (MCO)
8. MBIA (MBI)
9. St. Joe Company (JOE)
10. OpenTable (OPEN)
11. Rosetta Stone (RST)
12. VistaPrint (VPRT)


Of these short positions, we just this morning posted up a potential short thesis on OpenTable (OPEN). David Einhorn's hedge fund Greenlight Capital has also been short two of the same stocks. We've detailed Einhorn's short thesis on Moody's: Curse of the Triple-A and most recently his bearish presentation on St. Joe (JOE) from the Value Investing Congress.

If you've followed T2's short positions on MarketFolly.com, you'll notice that their short positions in Netflix (NFLX) and InterOil (IOC) are not listed as some of T2's largest shorts. However, they do still hold a short position in these names. On NFLX in particular, T2 feels that the company's valuation is extreme at 67x trailing earnings and their transition to a streaming video company is a less desirable business model.


And here are Tilson & Tongue's 10 largest long positions:

1. Automatic Data Processing (ADP)
2. Microsoft (MSFT)
3. CIT Group (CIT)
4. Berkshire Hathaway (unclear which share class, either BRK.A or BRK.B)
5. BP (BP)
6. General Growth Properties (GGP)
7. Iridium (IRDM)
8. Liberty Acquisition (LIA & warrants)
9. Resource America (REXI)
10. Kraft (KFT)

Of these positions, we recently detailed T2's bullish case for Automatic Data Processing (ADP). Additionally, their recent presentation at the Value Investing Congress laid out their stance on BP (BP) and Liberty Acquisition (LIA).

Tilson and Tongue commented on their thesis and relative information regarding their positions in their in-depth conference call. You can hear a replay of the call via the embedded audio player below (email readers will need to come to the site to hear it):