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We like those money managers who are willing to share their investment ideas with ordinary investors. Whitney Tilson, co-founder of T2 Partners, is one of these managers. He is the co-author of “More Mortgage Meltdown: 6 Ways to Profit in These Bad Times.” He has also written for different magazines and websites, and appeared many times on CNBC and Bloomberg TV. With a reputation for picking unloved stocks, Tilson’s T2 Partners had a cumulative return of about 177% during the last decade, heavily beating the 36.4% return for S&P 500 (NYSEARCA:SPY) index.

In this article, we are going to focus on the stocks T2 Partners sold out over the third quarter. Below we compiled a list of 12 biggest sells of the fund.

Company

Ticker

Value

GENERAL GROWTH PPTYS INC

GGP

7470

BP PLC

BP

7143

BLUE COAT SYSTEMS

BCSI

3279

WINN DIXIE STORES

WINN

2631

TARGET CORP

TGT

2624

GAMESTOP CORP

GME

2265

INTERDIGITAL INC

IDCC

2055

ALEXANDER & BALDWIN

ALEX

1729

IMATION CORP

IMN

1721

RICHARDSON ELECTRONICS LTD

RELL

1397

REPUBLIC AIRWAYS

RJET

1143

SPROTT RESOURCE LENDING

SILU

1138

During the third quarter Whitney Tilson initiated brand new positions in out of favor financial stocks like Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), Wells Fargo (NYSE:WFC). Tilson already had a position in JP Morgan (NYSE:JPM). Tilson also initiated a brand new position in Apple (NASDAQ:AAPL) too. He sold several stocks to finance these purchases. The biggest position that T2 Partners sold out over the third quarter was General Growth Properties Inc (NYSE:GGP). At the end of June, T2 reported to own $7.5 million of GGP stock, while at the end of the third quarter, the fund did not disclose owning any shares of GGP. The stock returned 24.67% so far in the fourth quarter. It has a market cap of $14.0B. George Soros also sold out his stakes in GGP during the third quarter.

Another big sell of T2 Partners during the third quarter was BP Plc (NYSE:BP), an international oil and gas company. T2 sold out all $7.1 million worth of BP shares in the third quarter. The stock returned 20.27% since the end of September. It has a market cap of $136B and a P/E ratio of 5.88. David Einhorn and Dan Loeb are also no longer bullish about BP.

Target Corp (NYSE:TGT) is another large-cap stock that T2 sold out during the third quarter. At the end of the second quarter, the fund had $2.6 million invested in TGT. The stock returned 5.15% since the end of the third quarter, versus 11.41% for SPY in the same period. TGT has a market cap of $34.4B and a P/E ratio of 11.98. George Soros, Steven Cohen, Joel Greenblatt, Paul Tudor Jones, and Ray Dalio also sold out their TGT stakes over the third quarter.

Tilson also sold out all his stakes in Blue Coat Systems Inc (NASDAQ:BCSI), Gamestop Corp (NYSE:GME), Interdigital Inc (NASDAQ:IDCC), and Alexander & Baldwin Inc (NYSE:ALEX). Some of the stocks that Tilson sold out during the third quarter outperformed the market since the end of September, but these stocks may be trading at premium. For example, BCSI and ALEX have relatively high P/E ratios. Therefore, we recommend investors be cautious about the stocks that Tilson is no longer in favor of. We are also bullish about the financial stocks. This may not be the best time to buy financials but they are attractively priced for long-term investors.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 12 Big Sells By Whitney Tilson