Whitney Tilson’s T2 Partners Up Whopping 10.6% in March

Below is commentary from Whitney Tilson:

Our fund rose 10.6% in March vs. gains of 3.3% for the S&P 500, 2.1% for the Dow and 4.3% for the Nasdaq.  Year to date, during the best first quarter for the S&P 500 and Dow since 1998, and the best for the Nasdaq since 1991, our fund also had its best first quarter, jumping 23.6% vs. 12.6% for the S&P 500, 8.8% for the Dow and 18.9% for the Nasdaq.

 

Seth Klarman: Investors Can No Longer Rely On Mean Reversion

Volatility"For most of the last century," Seth Klarman noted in his second-quarter letter to Baupost's investors, "a reasonable approach to assessing a company's future prospects was to expect mean reversion." He went on to explain that fluctuations in business performance were largely cyclical, and investors could profit from this buying low and selling high. Also Read More


On the long side, winners included Iridium warrants (45.1%), dELiA*s (32.1%), JP Morgan Chase (17.2%), Howard Hughes (15.0%), Citigroup (9.7%), Wells Fargo (9.1%), AB InBev (8.1%), and Goldman Sachs Group (NYSE:GS) (8.0%).  Our only losers of note on the long side were J.C. Penney (-10.5%) and Grupo Prisa (B shares) (-8.6%).

 

Despite the market’s rise, we eked out a gain on the short side thanks to our two largest short positions, Green Mountain Coffee Roasters (GMCR) (which in last month’s letter we said is likely to be the next Krispy Kreme) and InterOil, (NYSE:IOC) falling 27.9% and 14.5%, respectively.  Also contributing on the short side were First Solar (-22.4%) and OpenTable (-16.6%), offset by St. Joe (18.0%), Tesla (11.5%), and Lululemon (11.5%).

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