Tilson, Tongue Split from T2 Partners; Tilson in Rebuilding Phase

On June 22, hedge fund managers Whitney Tilson and Glenn Tongue of T2 Partners disclosed to investors that the two would go their separate ways, leaving Tilson sole principle of T2 Partners.According to the letter, it was after careful consideration that they decided not to manage money together anymore. It stated their friendship has not changed, and they will continue operating their funds. Tongue will be creating a new investment firm called Deerhaven Capital Management that will independently manage the T2 SPAC Fund.Upon the split, Tilson stated that T2 Partners has liquidated most of its positions, raising its cash position to just about 70 percent. Some of these recently liquidated positions included Berkshire Hathaway (NYSE: BRK.A), J.C. Penney (NYSE: JCP), AIG (NYSE: AIG), and Netflix (NASDAQ: NFLX). However, Tilson did state that he is going through a rigorous process with each position, and since July, he has begun investing some of the recently raised cash, with some of it re-entering into Berkshire Hathaway.According to his letter, Tilson stated, "It has been a productive period as I picked some low-hanging fruit, and the fund is now over 50% invested on the long side and more than 20% on the short side. I will invest more slowly in the coming months as I carefully and deliberately rebuild the portfolio toward my approximate target of 100% long and 40% short."The once fairly outspoken hedge fund manager stated that he "will adopt a much lower public profile and let my investment returns speak for themselves." He specifically stated he will reduce appearing on television, interviewing with the media, and speaking to the public.