Tilson Boosts Stakes In MagicJack, Spark Networks, Sodastream

Whitney Tilson’s T2 Partners Management increased its stake in ten companies during the first quarter based on 13F filing with the Securities and Exchange Commission (SEC).

The filing showed that T2 Partners’ equity portfolio has a market value of $59,886,000 as of March 31, 2015.

Tilson –  top three stockholdings

During the quarter, the largest stockholding of T2 Partners is Howard Hughes. The hedge fund increased its stake in the company by 3,844 shares to 50,425 shares. Its stake has a market value of approximately $7.8 million, which accounts 13.05% of its equity portfolio.

Howard Hughes Corp is a developer and operator of master-planned communities and mixed-use properties. TheStreet recently upgraded its rating for HHC shares to Buy and Zacks issued a Strong Buy recommendation.

T2 Partners’ second largest stockholding is Platform Specialty Products, a global producer of high-technology, specialty chemical products and provider of technical services.

The hedge fund bought additional 79,075 shares of PAH shares during the quarter. T2 Partners now owns 271,140 shares in the company worth around $6.95 million, which accounts 11.62% of its portfolio. Analysts at Zacks recently issued a Strong Buy rating on the stock. Brokerage firms have a one-year consensus price target of$30.50 a share for Platform Specialty Products.

The third largest stockholding of T2 Partners is Reading International, a diversified hard asset company focused on the development, operation, and ownership of entertainment and real property assets in Australia, New Zealand, and the United States.

T2 Partners boosted its stake in the Reading International by 19,500 shares to 371,106 shares. Its position in the company has a market value of around $4.99 million and accounts 8.33% of its portfolio.

On Tuesday, Reading International reported its financial results for the first quarter of 2015. The company’s net income increased from a loss of $215,000 to $3.1 million or $0.13 per share. Its revenue rose 4.4% from %58.1 million to $60.6 million.

The shares of Reading International closed $13.34 per share, up by more than 2% on Wednesday driven by its positive financial performance.

T2 Partners other increased positions

T2 Partners also increased its positions in Spark Networks, a global media business company. The hedge fund acquired additional 38,940 shares bringing its stake to 761,709 shares worth around $3.07 million.

The stock price of Spark Networks declined almost 4% to $3.80 per share on Wednesday. Over the past 52 weeks, the stock traded between $3.12 and $6.21 per share. The company lost more than 14% of its stock value over the past year.

The hedge fund bought additional 17,810 shares of magicJack during the period. T2 Partners now owns 338,014 shares of the company worth approximately $2.3 million.

In February last year, Tilson said magicJack was his next Netflix during the Value Investing Congress. According to him, the company’s stock was beaten down and heavily shorted at the time, but it has a great management. He also noted that magicJack has fixable problems and enormous global market.

Tilson also boosted his stake in Sodastream International, which now is over 5% of the Kase Capital portfolio. The company was down 7% amid rough earnings, and has dropped over 50% in the past twelve months.

See Tilson’s Q1 letter here