Tilson and Tongue said last year that Warren Buffett's Berkshire Hathaway (BRKA) was their fund's biggest holding "by far," and predicted shares would soar as Berkshire became less of an investment company and more of an operating business. That turned out to be a good call.
At more than $132,000 a share, Berkshire isn't a cheap stock but Tilson and Tongue thought it should be worth even more. They put 'fair value' at $170,000 a share.
Meanwhile, investors would have taken a big hit on J.C. Penney (JCP) if they followed Tilson and Tongue, who like Ackman (see slide 1), also believed in a J.C. Penney turnaround. As an activist investor, Ackman has had a more pronounced effect on J.C. Penney's operations, but Tongue and Tilson's lauding of the retailer's future prospects also carries weight.
Since last year's conference, Tilson and Tongue have dissolved their fund, which reportedly suffered losses of more than 10% in 2011. They'll be giving separate presentations at this year's conference.
