market folly

Whitney Tilson of hedge fund T2 Partners recently presented at the Stern Hedge Fund Association Summit and talked about the US economic overview, what worries his fund, as well as an analysis of his three largest positions: Berkshire Hathaway (BRK.A), Iridium (IRDM & warrants), and Howard Hughes (HHC).

On The Economy: He notes that it appears the recovery has gradually picked up steam and that job creation has been positive for 24 consecutive months. And while unemployment continues to be high, it has fallen some.

What Worries Them: Further downturn in the US housing market, the European banking system entering another crisis, a sharp slowdown in China, and/or a sovereign debt crisis in Japan. On the market, they say that "based on inflation-adjusted 10-year trailing earnings, the S&P 500 at 21.9x is trading at a 13% premium to its 50-year average of 19.4x."

The full presentation is embedded below and details analysis of his 3 top positions BRK.A, IRDM, & HHC:



Tilson will be presenting his latest investing ideas at the Value Investing Congress in Omaha right after the annual Berkshire Hathaway meeting next month. Market Folly readers can receive a discount here.

To see more thoughts from T2 Partners, you can also check out a long/short equity investing panel from the CIMA Conference.