Whitney Tilson’s T2 conference call on Current Positions

0

Whitney Tilson’s T2 conference call, summary:

Here’s an outline of the call, which lasted 80 minutes (with the minute/seconds if you want to skip directly to a certain part):

Opening Remarks

The Hedge Fund Manager Who Broke Even When Most Other Funds Got Killed

Moez Kassam of Anson FundsWhen investors are looking for a hedge fund to invest their money with, they usually look at returns. Of course, the larger the positive return, the better, but what about during major market selloffs? It may be easy to discount a hedge fund's negative return when everyone else lost a lot of money. However, hedge Read More

  • 0:00: 2012 YTD performance through today: 24.0-26.1% across our three hedge funds vs. 10.8% for the S&P 500 with dividends reinvested; MTD our funds are up 1.1% vs. -1.6% for the S&P.
  • 1:06: Our 10 largest long positions in descending order of size: Berkshire Hathaway Inc. (NYSE:BRK.A) (BRK.B) , Iridium Communications Inc. (NASDAQ:IRDM), Howard Hughes, American International Group, Inc. (NYSE:AIG), Goldman, Citigroup, JC Penney, Netflix, SanDisk, and Resource America. Other positions of note: we still own Dell and Microsoft; our newest position is Justice Holdings (Burger King); and we own Wells Fargo and JP Morgan Chase primarily via TARP warrants.
  • 2:37: Our 10 largest short positions in descending order of size: InterOil Corporation, five homebuilders (the largest of which is Standard Pacific), three social networking companies (the largest of which is LinkedIn), salesforce.com, inc. (NYSE:CRM), Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), five for-profit education companies (the largest of which is ITT Education), The St. Joe Company (NYSE:JOE) , Lululemon Athletica, Nokia Corporation (NYSE:NOK) , and Michael Kors.
  • 3:25: Lessons from 2011 and our good start to 2012; our economic outlook is “cautiously optimistic”; we have been trimming some longs and adding to some shorts.

 

Q&A

  • 8:00: What is your thinking on  American International Group, Inc. (NYSE:AIG)? (please excuse the technical snafu from 9:00-10:14)
  • 13:41: Regarding Berkshire Hathaway, why don’t you subtract liabilities when valuing its float?
  • 17:12: Why does Berkshire Hathaway Inc. (NYSE:BRK.A) (BRK.B)’s return on equity appear to be so low?
  • 18:38: When do you buy long-dated call options instead of stock, and what is your thinking behind your position in Goldman’s long-dated call options?
  • 24:32: Comments on Grupo Prisa
  • 29:33: Comments on Iridium Communications Inc. (NASDAQ:IRDM)
  • 34:32: Comments on Green Mountain Coffee Roasters Inc (NASDAQ:GMCR)
  • 41:15: Comments on Bank of America and why we prefer Citigroup
  • 45:33: Comments on SanDisk
  • 52:05: Comments on Facebook and LinkedIn
  • 57:28: Comments on Lululemon Athletica inc. (NASDAQ:LULU)
  • 1:00:21: Comparison of Lululemon Athletica inc. (NASDAQ:LULU) and Under Armour
  • 1:06:10: Thoughts on types of shorts and how we manage high-flyers; we prefer frauds and/or promotions like InterOil Corporation or broken businesses/industries like homebuilders, for-profit education,The St. Joe Company (NYSE:JOE), Nokia Corporation (NYSE:NOK) and First Solar.
  • 1:08:56: Has Berkshire’s float peaked and how does it affect how we think about the company’s long-term valuation?
  • 1:10:53: Comments on salesforce.com, inc. (NYSE:CRM)

Full link to call https://rcpt.yousendit.com/1470079789 and 923e3aa177ea4ecce5a03741c657e820

Updated on

No posts to display