Tilson’s lucky move puts T2 partners ahead 26%

17 May

Whitney Tilson’s recent financial decisions could easily be called gambling by a casual observer. For months now, Tilson, a well followed money manager, has stuck to a short sell order on Barnes and Noble, over what he felt was a crashing company. The Nook, so far a failing enterprise, got a second lease on life when Microsoft made its announcement of investing in the project.

Whitney Tilson’s company, T2 Partners, happily rode in on the coattails of the announcement when they performed a sharp about face, with a long strategy towards the rocketing company. The bit of impeccable timing helped add to the firm’s 26% increase in profits this year, well above the average index. Short selling Nokia, Tesla, and First Solar were also major contributors.

Not all of Tilson’s decisions strike gold, however. Netflix, the popular television and movie streaming service, is still hemorrhaging money, and Tilson’s continued conviction to the property is hard to defend when the company had a sharp 30% decline in April. He counters, explaining that over all this year it’s been one of the five biggest winners for the company, and is sure that it will continue to increase as time goes on.

Whether or not Barnes and Noble continues to power on ahead with the energy Nook has instilled in it remains to be seen, but there’s no doubt that there has been some big winners among the investors like Tilson who knew exactly when to switch the bets around.


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