Founded in 2004, T2 Partners Management (T2) is a registered investment adviser (long/short equity hedge fund) that provides discretionary and non-discretionary investment advisory services to separately managed accounts, mutual funds and private funds. Current Managing Partners include Whitney Tilson and Glenn Tongue. As of February 28, 2011, T2 had approximately $262 million in assets under management across 6 accounts.
The Private Funds’ Fees: T2 typically receives a management fee, payable quarterly, equal to 0.375% or 1.5% annually. T2 also charges an annual incentive allocation of 20% of the Private Funds’ net income, which include realized and unrealized gains.
The Mutual Funds’ Fees: In terms of its Focus Fund, T2 typically receives a monthly variable performance incentive fee comprised of an annual rate fee of 1.5% of average daily net assets, which is subject to a monthly performance incentive adjustment that typically ranges from -0.45% to +0.45%. In terms of the Dividend Fund, T2 also receives a monthly management fee equal to an annual rate of 1.5% of the Dividend Fund’s net assets.
The Private Funds’ and Mutual Funds’ investment objectives are to achieve long-term after-tax capital appreciation commensurate with moderate risk, primarily by investing with a long-term perspective in a concentrated portfolio of U.S. stocks. T2 offers four value-driven private investment funds:
T2 Accredited Fund: the objective is to buy and hold a concentrated portfolio of securities for an extended period of time in order to achieve long-term capital appreciation while minimizing risk.
T2 Qualified Fund and Tilson Offshore Fund: The objective is to achieve long-term after-tax capital appreciation commensurate with moderate risk, primarily by investing with a long-term perspective in a concentrated portfolio of U.S. stocks.
T2 SPAC Fund: the objective is to generate long-term capital appreciation, primarily by investing in common stock and warrants of SPACs.