Whitney Tilson's Kamikaze Investment Strategy

whitney tilson

Photo: CNBC

The news today is that Whitney Tilson is splitting up from his long time hedge fund partner Glenn Tongue.Tilson said in a letter to investors that he plans to do less publicity and let his returns speak for themselves.

Tilson is a fixture on CNBC, so this will be a loss, but beyond his TV appearances, he and his fund were famous for their incredibly wild swings. Some quarters he’d be up huge. The next month or quarter he’d be crushed.


Basically basically T2 took on a wildly dangerous long-short investment strategy.

Here’s a list of his top 15 favourite longs from back in April:

1. Berkshire Hathaway
2. Iridium (stock & warrants)
3. Howard Hughes Corp.
4. Citigroup
5. Goldman Sachs
6. JC Penney
7. Netflix
8. SanDisk
9. AIG
10. Pep Boys
11. Alexander & Baldwin
12. Dell
13. Resource America
14. MRV Communications
15. Grupo Prisa (B)

So many of these stocks are “broken” in some way or another. Goldman, Citi, Iridium, AIG, Dell, and Netflix are some of the most dubious names around.

On the flipside, he was fond of shorting super-momentum names like Green Mountain, Lululemon, and others like that.

So he’d go long deep value broken names and go short the hottest momentum names in the world, but which he thought were overvalued.

That meant wild swings when momentum names ignored their overvaluation and kept moving against him, or when some beaten down name suddenly surged.

Wild times!

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