Whitney Tilson’s T2 Partners Management assets under management declined from $333, 956,589 million to $117,943,589 million based on its 13F filing during the second quarter of 2012 following Glen Tongue’s decision to end his role as managing partner of the firm last June. Tongue will independently manage the T2 SPAC Fund under his newly established investment firm, Deerhaven Capital Management.
As the sole manager of the T2 Partners, Tilson restructured his hedge fund and decided to sell majority of its stocks under its portfolio to raise its cash position and to rebuild its portfolio. Tilson sold out his shares in Wells Fargo & Company (NYSE:WFC), Anheuser-Busch InBev NV (EBR:ABI) (NYSE:BUD), Microsoft Corporation (NASDAQ:MSFT), Diamond Offshore Drilling, Inc. (NYSE:DO), Bank of America Corp (BAC) calls, Goldman Sachs Group, Inc. (NYSE:GS) calls and eleven other stocks. Full 13-F can be found here.
He also reduced his shares in Warren Buffet’s, Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) by 97.3 percent to 4,782 shares, with $398.484 market value. The stock was its top holding during the first quarter (939,800 shares) worth $76,265,000. The firm also reduced its stakes in Howard Hughes Corp (NYSE:HHC) by 95.2 percent, from 271,647 shares to 12,959 shares;
Citigroup Inc. (NYSE:C) by 94 percent from 311, 764 shares to 18,717 shares; J.C. Penney Company, Inc. (NYSE:JCP) by 87.6 percent to 34,837 shares; and Netflix, Inc. (NASDAQ:NFLX) by 88.24 percent to 9,995 shares.
As of August 14, 2012, Tilson is managing 62 stocks under its portfolio. As of June 30, he purchased new stocks including MFC Industrial Ltd (NYSE:MILL) 465,000 shares; Brookfield Asset Management Inc. (TSE:BAM.A) (NYSE:BAM) 90,000 shares; Big Lots, Inc. (NYSE:BIG) 62,500 shares; Symantec Corporation (NASDAQ:SYMC) 90,000 shares; Ruby Tuesday, Inc. (NYSE:RT) 131,500 shares; Miller Industries, Inc. (NYSE:MLR) 49,100 shares and bought four other stocks.
Tilson also raised his stakes in Fifth Street Finance Corp. (NASDAQ:FSC) by 134.3 percent to 257, 821 shares; Accenture Plc (NYSE:ACN) by 133.3 percent to 35,000 shares; Iconix Brand Group, Inc. (NASDAQ:ICON) by 56.5 percent to 180,000 shares. He also bought an additional 18.5 percent or more than 1.8 million shares of Promotora de Informaciones S.A. (NYSE:PRIS) (NYSE:PRIS.B) and more than 3.6 million shares of dELiA*s, Inc. (NASDAQ:DLIA), etc.
The hedge fund placed a call option on 105,600 shares of Berkshire Hathaway, worth $8.8 million, and 129, 400 shares of Barnes & Noble, Inc. (NYSE:BKS), with a $2.13 million market value. Tilson considers Bershire Hathaway as a low volatility and safe stock.
During an interview with CNBC last June, Tilson said he is not convinced the U.S. economy is going over a cliff or into a double-dip recession based on the weak employment data. Tilson expressed strong confidence in the U.S. Financials. He said Citigroup and American International Group, Inc. (NYSE:AIG) are two of his favorite stocks.