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

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“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]

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Whitney Tilson Was As Surprised As You Are To Learn That He Was Long Netflix On The Way Up

NFLX is up 75% year to date so you probably assumed that Whitney Tilson had gotten rid of it sometime last year. You were not alone: We thought it was a little strange when Whitney Tilson and Glenn Tongue's hedge fund T2 Partners' latest 13F came out earlier this week and Netflix wasn't included. We sent the hedge fund manager an email to find out why and there's now a corrected version of the fund's regulatory filing out. It turned out, it was just an error. As of December 31, 2011, T2 Partners had combination of 89,771 shares and 81,000 call options in Netflix, according to the updated 13F. Here's Why Whitney Tilson's 13-F Didn't Have Netflix In It When It Came Out [BI]