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Whitney Tilson’s T2 Partners is a value investing firm and, through 2010, it had always delivered. T2 Partners returned 177.1% cumulatively between its inception in 1999 and 2010, vs. the S&P 500’s 36.4% return for the same period. T2 partners lost nearly 25% in 2011. Tilson recently released a letter to investors in which he detailed his fund’s performance, outlining his largest losing positions and his top-performing ones.

All in all, T2 Partners’ top ten losing bets accounted for 21 percentage points of his fund’s losses last year. Tilson did have some winning stocks, but together its top ten “winning” stocks accounted for only 5 percentage points, falling short of covering the fund’s losses. Here is a list of seven of Tilson’s losing stocks.

1. Iridium Communications (NASDAQ:IRDM): Lost -3.3%

Tilson’s T2 Partners had $11.47 million in IRDM at the end of September after increasing its stake in the company by +12% during the third quarter. IRDM has a $529.31 million market cap and carries an analyst recommendation of 1.7 on a scale in which 1.0 means “Strong Buy” and 5.0 means “Sell.” It recently traded at $7.23 a share.

2. Seagate Technologies (NASDAQ:STX): Lost -1.9%

T2 Partners held $145,000 in STX at the end of September after decreasing its holding in the company by -98% during the third quarter. STX has a $7.81 billion market cap and carries an analyst recommendation of 2.3 on a scale in which 1.0 means “Strong Buy” and 5.0 means “Sell.” It recently traded at $18.60 a share.

3. Howard Hughes (NYSE:HHC): Lost -1.8%

Tilson’s T2 Partners had $10.93 million invested in HHC at the end of September after upping its stake in the company by +47% during the third quarter. HHC has a $1.80 billion market cap and carries an analyst recommendation of 1.00 on a scale in which 1.0 means “Strong Buy” and 5.0 means “Sell.” It recently traded at $47.34 a share.

4. CIT Group (NYSE:CIT): Lost -1.7%

T2 Partners had $215,000 in CIT at the end of September after decreasing its holding in the company by -96% during the third quarter. CIT has a $7.45 billion market cap and carries an analyst recommendation of 2.1 on a scale in which 1.0 means “Strong Buy” and 5.0 means “Sell.” It recently traded at $37.11 a share.

5. dELIA*s (NASDAQ:DLIA): Lost -1.7%

Tilson’s T2 Partners had $41.8 million at the end of September after upping its stake in the company by +2% during the third quarter. DLIA has a $35.49 million market cap and carries an analyst recommendation of 3.0 on a scale in which 1.0 means “Strong Buy” and 5.0 means “Sell.” It recently traded at $1.13 a share.

6. Citigroup (NYSE:C): Lost -1.4%

T2 Partners had $7.03 million in C at the end of September after increasing its stake in the company by +3335% during the third quarter. C has a $87.71 billion market cap and carries an analyst recommendation of 2.3 on a scale in which 1.0 means “Strong Buy” and 5.0 means “Sell.” It recently traded at $30.00 a share.

7. Microsoft (NASDAQ:MSFT): Lost -1.4%

Tilson’s T2 Partners had $5.53 million in MSFT at the end of September after decreasing its position in the company during the third quarter. MSFT has a $234.20 billion market cap and carries an analyst recommendation of 2.1 on a scale in which 1.0 means “Strong Buy” and 5.0 means “Sell.” It recently traded at $27.84 a share. David Einhorn had $378 million invested in Microsoft at the end of September.

Source: Whitney Tilson's 7 Losing Picks Of 2011