Whitney Tilson Shuts Hedge Fund

Another major closure see from the inbox

First some memorable moments

See the email from Tilson below

 

I recently decided to close my funds and return capital to investors (excerpts from my letter to them are below). It was a hard decision, but the right one.

Now, I am filled with enthusiasm about what I will do with the second half of my life. What might that be? I’m not sure, but I want to share a few thoughts – and would be grateful for your feedback and ideas.

 

I’ve been working full time for more than 30 years, almost all of that time in an entrepreneurial capacity. While my one “regular” job early in my career was a good experience, I like being independent and plan to remain so. My goal is to find opportunities that are personally interesting, give me the chance to collaborate with great people, and are sufficiently remunerative (contrary to Elizabeth Warren’s belief, I am most definitely not a billionaire!).

 

I expect that most of my work will continue to be in the investment field, as I still love it and am confident that I can put my energy and 18 years of experience to good use. While I no longer intend to manage others’ money, I’m exploring a number of ideas, such as:

 

1) Unearthing a few great investment opportunities each year, in which I can invest personally as well as share with a few others;

2) Serving on corporate boards;

3) Doing consulting in areas in which I have expertise such as capital allocation, strategy, and activist investing; and

4) Teaching and mentoring young value investors via writings, videos and seminars.

 

I would welcome your advice and suggestions, so please don’t hesitate to email me at WTilson@kasecapital.com or call me at (646) 258-0687.

 

Sincerely yours,

 

Whitney

———————

Here are excerpts from the letter I sent my investors recently:

 

Dear Partner,

 

I wanted to follow up on the conversations I’ve had with each of you recently regarding my decision to close the fund and return your capital.

 

Most importantly, I’d like to reiterate my tremendous gratitude for your patience and confidence in me over the years. You gave me the time to try to improve the fund’s performance, and I deeply regret that I was unable to do so.

 

If I were managing only my own money, the fund’s recent results wouldn’t bother me quite so much. But investing and running a money management business are two very different things, and reporting sustained underperformance to you was making me miserable.

 

I would have liked nothing better than to have rewarded you for standing by me during these difficult times by ending on a high note, but I ultimately concluded that I couldn’t in good conscience continue to manage your money unless I had a high degree of confidence that I could turn things around within a reasonable time frame.

 

Over the nearly two decades that I have managed money professionally, I have endured other periods of underperformance. During those times, however, I was certain that the losses were temporary because our portfolio was filled with cheap stocks that would quickly rebound.

 

Alas, I don’t have that feeling today. Historically, I have invested in high-quality, safe stocks at good prices as well as lower-quality ones at distressed prices. Given the high prices and complacency that currently prevail in the market, however, my favorite safe stocks (like Berkshire Hathaway and Mondelez) don’t feel cheap, and my favorite cheap stocks (like Hertz and Spirit Airlines) don’t feel safe. Hence, my decision to shut down.

 

It has been a tremendous privilege to manage your capital, and I want to express my deepest gratitude for your support and friendship over the years. It means the world to me.

 

Sincerely yours,

 

Whitney

Comments (2)

  • Witless Tilson now a coward

    Next to bite dust will be his best friend, bill ackman!

    September 28, 2017 at 12:00 pm
  • Stopping Libtardation

    It is nice when the bad guys lose. Pretty funny that one of his heroes, Pocahontas Warren, attacked him. Love when liberals eat their own. Next short idea is any company that has Whitney Tilson on their board.

    September 30, 2017 at 2:16 pm

LEAVE A COMMENT


Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Sign up for ValueWalkPremium today and get our exclusive content for 35% off.

Use coupon code vip19 or click on the button below

Limited time offer only ENDS 12/31/2019 or after next 25 subscribers take advantage whichever comes first – please do not share this discount with others

 

0