Hedge Funds

Whitney Tilson: T2 Partners Nailed Its Netflix Short Except For The Fact That It Didn’t

“If you go back and read our original Netflix piece, we pretty well nailed it,” Tilson told Forbes today. “But we were quite early – we were almost a year early. So we got clobbered to the point that we couldn’t take the pain, and we just said, ‘You know what? There are better shorts out here.’ And later, to the Journal: “It’s been frustrating to see our original investment thesis validated, yet not profit from it. It certainly highlights the importance of getting the timing right and maintaining your conviction even when the market moves against you. The core of our short thesis was always Netflix’s high valuation. In light of the stock’s collapse, we now think it’s cheap and today established a small long position. We hope it gets cheaper so we can add to it.” [Forbes, WSJ]

35 comments
(hidden for your protection)
Show all comments

35 Responses to “Whitney Tilson: T2 Partners Nailed Its Netflix Short Except For The Fact That It Didn’t”

  1. Tom says:

    Whitney Tilson is a clown. He went from outspoken NFLX critic to Reed Hastings sycophant. Now he is claiming vindication. The way I see it, he was wrong every time – not right even once. I would admire him had he stayed short. But caving in and writing a letter about how awesome NFLX is, and now trying to take credit for just being early is intellectually dishonest, just like his stupid investment in Iridium. Whitney Tilson does not know what he is doing. Thank god Bill Ackman and David Einhorn let him ride their coat-tails.

    • Anal_ist says:

      True. But, there is some NKI joke in the fact that he still gets people to pay thousands to attend his Value Investing Congress while sucking so publicly.

  2. Moron... says:

    We're long NFLX too!

    – UBS MD

  3. timing guy says:

    I totally nailed that chick and would've gotten her knocked up if I hadn't come too soon. Like, before I was even inside her.

    • J. Epstein says:

      I also nailed the shorties before testifying, solely due to advice of counsel, that I did not nail any shorties.

  4. Paul Tudor Jones says:

    Losers average loser

  5. Guest says:

    To "nail it" as an investment manager, you need to make money on the position. Nothing else matters.

  6. NetFlix says:

    Boardwalk Empire………… $1.99/episode
    Entourage………………………$1.99/episode
    Shameless……………………..$2.99/episode
    East Down and Bound……$5.99/episode

    Bridesmaids……………………$9.99
    The Big Short………………….$367,428,762.99

    • Moron... says:

      Do you work for UBS?

      HBO OnDemand………….. $10.00/month
      Boardwalk Empire……….. Free Unlimited
      Entourage……………………. Free Unlimited
      EastBOUND and Down.. Free Unlimited
      Game of Thrones………… Free Unlimited

  7. Not Impressed says:

    "We hope it gets cheaper so we can add to it.”

    Very passive aggressive. Kind of like saying, I hope my girlfriend sleeps around on me even more, so that I can demonstrate the depth of my love for her.

  8. Hungry Intern says:

    I remember this happened to me once, but thankfully I was able to explain myself before I did not explain myself.

    John Kerry

  9. 2_Small_2_Bail says:

    "In light of the stock’s collapse, we now think it’s cheap and today established a small long position. We hope it gets cheaper so we can add to it."

    Buying a stock in hopes it goes lower to so you can average down and buy more is the NKI.

    • B. Gross says:

      Thats when the eating starts. Next thing, you're averaged in at 65 and "a minute on your lips, a lifetime on your hips" doesn't mean anything any more.

    • Huh? says:

      Like the morons who avereged down in Enron, BAC, etc……. His next buy is GM

  10. Nailz6 says:

    If I recall, Whitney rarely goes long enough for me.

    – Niki Marx

  11. investorcluzo says:

    the NKI is (1) losing money on a short position; (2) watching the stock fall 70% as your thesis plays out while licking your wounds; capped off by (3) going long only lose another 20%…
    -UBS Trader

  12. HAM05 says:

    so disappointing, thought i was gonna read about cumming in mouths etc :(
    damn you tilton/tilson, and your gender neutral names!

  13. The Truth says:

    Whitney, call me! We can start I Knew It Capital, LLC

    – D. Gartman

  14. Meredith Whitney says:

    Forget the Muni collapse! Munis are a bargain!! I hope to average into these myself!

  15. Paulson trader says:

    Whats Netflix, sorry only interested in financials.

  16. Jimmy says:

    This is what happens when you give your son a girls name.

  17. UFO says:

    1. There's only room for one Whitney in this town
    2. Bears go short, FYI

    Sincerely,
    – Meredith

  18. HFguy says:

    ‘You know what? There are better shorts out here.’ And later, to the Journal: “It’s been frustrating to see our original investment thesis validated, yet not profit from it.

    Yeah, like the Doom predicting Economists have got 3 of their 6 predictions right for all the bear markets out there. Keep saying it will crash and it will do eventually. Since I am on the roll here let me give you what John Maynard Keynes said " Markets can stay irrational longer than you can stay solvent"

  19. ttt says:

    You're short a stock based on its high valuation; the stock doubles and valuation multiples go even higher. Do you:
    a) increase your short and put out a 100 page presentation because you've actually done work on it (we can call this the Ackman)
    b) rumor monger the shi* out of the CEO and put some kiddie porn on his phone for good measure (the SEC)
    c) cover and go long (the UBS)
    d) cover, lock in your losses, discuss it all publicly, then gloat when it goes down even though you've lost your clients millions of dollars (tempting to also call this the UBS but I think this has to be either Tilsoned it or Munsoned.
    e) ?

  20. Steve says:

    e) Profit!

Our Sites

  • Above the Law
  • How Appealing
  • ATL Redline
  • Breaking Defense
  • Breaking Energy
  • Breaking Gov
  • Dealbreaker
  • Fashonista
  •