Whitney Tilson is closing his hedge fund

• Business Insider – Whitney Tilson is closing his hedge fund

You might not know him, but I have followed Whitney Tilson for years – I even read his book:

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I have never been very impressed by his Hedge Fund results, but I think he is a very smart dude – and he can’t find anything to invest in right now.  His Hedge Fund has lost 8% in 2017 – a year the S&P 500 is up almost 12%.  So he has decided to close his fund – and look at new career options.

I love this quote from his letter to shareholders “Given the high prices and complacency that currently prevail in the market, my favorite safe stocks (like Berkshire Hathaway and Mondelez) don’t feel cheap, and my favorite cheap stocks (like Hertz and Spirit Airlines) don’t feel safe.”

That one quote sums up today’s market for me – are there great companies to invest in right now, of course – but everybody knows about them, so they are trading at ridiculous levels (think Amazon – Trailing PE of 242).  Are there companies trading at a discount right now?  A few, but not for temporary reasons (think about the Amazon fueled retail apocalypse and companies like Sears).  These companies are probably going to zero.

Not looking for vindication, but if Whitney Tilson can’t find value in this market, I am not going to be beating myself up about being underinvested.