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Whitney Tilson Up 5.4% In October; Gains On GMCR, K12 Shorts

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Whitney Tilson’s latest letter to investors, which was reviewed by ValueWalk, can be found below.

The Kase Fund was up 5.4% in October vs. 4.6% for the S&P 500 and 1.8% for the HFRX Equity Hedge Index. Year to date, the fund is up 12.0% vs. 25.3% for the S&P and 8.6% for the HFRX Equity Hedge Index.


Whitney Tilson K12
Courtesy of Kase Capital

Driving the fund’s performance on the long side in October were Grupo Prisa (the A and B shares rose 17.2% and 29.3%, respectively, thanks to the company refinancing its debt),  Canadian Pacific Railway Limited (TSX:CP) (NYSE:CP) (up 16.0% on strong earnings),dELIA*s Inc. (NASDAQ:DLIA) (14.0%), and Avis Budget Group Inc. (NASDAQ:CAR) (8.7% — also strong earnings). On the short side, the big winners were  K12 Inc. (NYSE:LRN) (-40.8%) and Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) (-16.6%), both of which I discussed in my Q3 letter.

In the Q3 letter discuss my latest thinking on holding cash and long exposure, casting a wider net, and adjustments to my short strategy. I also share my analysis of my newest long position (and first ever outside of North America), Hyundai Motor Co (KRX:005380)  preferred stock, and two of my favorite shorts, K12 and Green Mountain Coffee Roasters (which David Einhorn also discusses in his Q3 letter, posted here: www.marketfolly.com/2013/10/david-einhorn-shorts-more-green.html)

Whitney Tilson Q3 letter embedded below

quarterlyletter-Q313 (1)

quarterlyletter-Q313 (1).pdf by ValueWalk.com

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