Whitney Tilson, the co-founder of the T2 hedge fund company and the Tilson Focus Fund (MUTF:TILFX) has parted ways with long time partner, Glenn Tongue. Earlier in the day, ZeroHedge, the most popular financial blog reported:
From the inbox:David Einhorn: This NJ Deli With One Location And Little Revenue Is Trading At $100M+ Valuation
In his first-quarter letter to investors of Greenlight Capital, David Einhorn lashed out at regulators. He claimed that the market is "fractured and possibly in the process of breaking completely." Q1 2021 hedge fund letters, conferences and more Einhorn claimed that many market participants and policymakers have effectively succeeded in "defunding the regulators." He pointed Read More
Tilson splitting from Tongue, unwinding T2 Partners, new fund at KASE Capital
We have just confirmed that the reports are at least partially true. Value Investor Insight, a website run by Whitney Tilson now has the following information in Tilson’s biography:
Whitney Tilson is the co-founder and Chairman of Value Investor Media, Inc., founder of Kase Capital, which manages value-oriented private investment partnerships, and Chairman of The Value Investing Congress.
Right now, Whitney Tilson is in Italy running a value investing seminar, which donates all the proceeds to charity. Tilson has frequently been sending emails to colleagues, but the practice has slowed down in the past few months.
The T2 hedge fund fund is up for the year 8.5%, however, May was a brutal month. The hedge fund fell close to 14%. Performance for June has not been disclosed to investors, according to our sources. Additionally, Whitney Tilson is no longer listed as being part of the Tilson Focus Fund on their website. We have no idea if performance has anything to do with changes.
Below is a quote from Tilson Mutual Funds from May 2012:
Mr. Tilson and Mr. Tongue manage the Tilson Focus Fund using a value-oriented investment strategy, seeking to identify companies whose stocks they believe are trading at a substantial discount – preferably at least 50% – to their intrinsic value. They concentrate the Fund in their best investment ideas – hence the name “focus” – and typically do not hedge via short or put positions.
The most recent paragraph states:
The Tilson Focus Fund is managed by Glenn Tongue. Mr. Tongue utilizes a value-oriented investment strategy, seeking to identify companies whose stocks they believe are trading at a substantial discount – preferably 50% – to their intrinsic value.
However, things are even murkier, some quotes from T2 Partners LLC (a hedge fund run by Tilson and Tongue):
Whitney Tilson is the founder and Managing Partner of T2 Partners LLC, which manages three value-oriented investment partnerships: T2 Accredited Fund, L.P., Tilson Offshore Fund, Ltd. and T2 Qualified Fund, L.P.
Glenn H. Tongue is the co-manager of T2 Partners LLC, which manages three value-oriented investment funds: T2 Accredited Fund, L.P., Tilson Offshore Fund, Ltd. and T2 Qualified Fund, L.P.
It appears that Tilson has left Tilson Focus fund, but Glenn Tongue still manages the mutual fund. The reasons and facts are still unclear. However, T2 Partners which still runs a hedge fund, Tilson and Tongue manage. So we have Whitney Tilson Partner of T2, and founder of Kase Capital. However, Glenn Tongue is partner of T2 and the manager of Tilson Focus Fund.
We will likely find out more facts in the coming days, but for now the mystery remains….