Hedge fund guru Whitney Tilson, the co-founder T2 Partners, has been absolutely dominating this week.
One of the big stories was Tilson going from short to long on Barnes & Noble last week. Then this week Microsoft announced a $300 million venture with the bookseller/Nook maker sending the stock price through the roof on April 30th.
In fact, that trade alone made a huge difference for his fund on the long side on the last day of the month.
Here’s an excerpt from his April performance letter (emphasis ours).
Our fund rose 1.5% in April vs. -0.6% for the S&P 500, +0.2% for the Dow and -1.4% for the Nasdaq. Year to date, our fund is up 25.8% vs. 11.9% for the S&P 500, 9.0% for the Dow and 17.2% for the Nasdaq.
On the long side, we were having a lousy month thanks to Netflix (-30.3%), SanDisk (-25.4%),
Grupo Prisa (B shares) (-23.7%), Goldman Sachs (-8.0%), and Citigroup (-7.4%) – until the last
day when Barnes & Noble jumped 51.7% (discussed further below). Other winners on the long
side included AIG (10.4%) and dELiA*s (10.0%).
Our gains for the month came entirely on the short side thanks to Nokia (-33.5%), First Solar
(-26.5%), and Tesla (-11.0%), partially offset by Interoil (17.6%)