Netflix, Inc. (NASDAQ:NFLX)
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5 Years : From Jan 2013 to Jan 2018
T2 Partners LLC posted a 12.6% rise in January as the hedge fund's bets on a rebound in stock prices panned out.
"Some might say that we have a hot hand so far this year, but this would be incorrect," the fund's managers Whitney Tilson and Glenn Tongue said in a letter to investors Thursday. "Our hands have been largely idle, as our portfolio today is nearly identical to the one that did so poorly last year. As we noted in our annual letter, time will tell whether we were wrong or just early on many of our favorite stocks--but the past month has provided some evidence for the latter."
The fund, which invests in stocks that are undervalued, has been positioning for a recovery in share prices, especially in financials, for some time. Those positions led to a 24.9% decline in the fund last year as investors were jittery over the European debt crisis and a slowdown in global economy.
Its January gains beat the S&P 500's 4.5% rise for the month.
Returns were buoyed by share price increases in companies like Netflix Inc. (NFLX), Goldman Sachs Group Inc. (GS) and Citigroup Inc. (C), according to the letter.
On the short positions or trades that bet on a decline in share prices, T2 made gains from Lululemon Athletica Inc. (LULU) and Green Mountain Coffee Roasters Inc. (GMCR), among others.
-By Amy Or, Dow Jones Newswires; 212-416-3142; email@example.com