T2 Partners

Whitney Tilson, the outspoken founder of hedge fund T2 Partners LLC, is girding for a deeper mortgage market meltdown after being singed in his first foray into the credit crisis' most toxic of securities -- subprime bonds. Tilson and partner Glenn Tongue have halted their move into the U.S. mortgage bond market, where an investment gone awry in one risky bond in late 2008 led them to rein in risk.

Without doubt, timely and democratic access to financial and market information contributes to smoothly functioning financial markets. But it’s worth asking whether the ubiquity of such information today is a friend or foe of sound investment decision-making. For all but the most active professional traders, the answer is often “no”.

The biggest problem, as studies have shown, is that investors tend to over-react to news, so its 24/7 availability harms their long-term success.

Whitney Tilson of T2 partners appeared on CNBC fast money and commented on the housing market.

Watch the video

Read Whitney Tilson's presentation on EMC, Resource America and Berkshire Hathaway.

I'm always surprised by the sweeping generalisations made by financial commentators during times of market distress. To say that in the current environment shares of companies in the financial sector are "oversold" or "already discounting a recession" or "poised to fall much further" is a simplistic view that doesn't reflect the diversity of businesses, companies and risks present among financial firms.

Speaking at the annual Value Investing Congress in New York City, Whitney Tilson & Glenn Tongue of T2 Partners recommended Resource America (Nasdaq: REXI) today at the Value Investing Congress.

Resource America, Inc. is a specialized asset management company that generates and administers investment opportunities for the Company and for outside investors in the financial fund management, real estate and commercial finance sectors.