The GM Building, 767 Fifth Avenue, 18

th
Floor, New York, NY 10153

Whitney R. Tilson and Glenn H. Tongue phone: 212 386 7160
Managing Partners fax: 240 368 0299
www.T2PartnersLLC.com

April 4, 2011

Dear Partner,

Our fund declined 4.3% in March vs. 0.0% for the S&P 500, 0.9% for the Dow and 0.0% for the
Nasdaq. Year to date, it`s down 3.1 vs. up 5.9% for the S&P 500, 7.1% for the Dow and 5.0%
for the Nasdaq.

Our weak performance was driven primarily by the same two stocks (discussed below) that
drove last month`s strong perIormance: Iridium (the stock Iell 15.1 and the warrants dropped
24.1%) and Berkshire Hathaway (-4.6%). Partially offsetting these losses were Howard Hughes
Corp. (up 22.3%), Seagate (13.4%), and Grupo Prisa (7.5%).

Our fund was profitable on the short side during the month thanks to Barnes & Noble (-31.4%),
Boyd Gaming (-12.3%), MBIA (-10.4%) and St. Joe (-6.4%). These gains were partially offset
by OpenTable (19.7%) and Lululemon Athletica (14.8%).

Deviating f rom the Crowd
As we`ve discussed in recent letters, our recent underperIormance is due in part to some mistakes
we made, mostly on the short side: we were short a Iew stocks like NetIlix that we shouldn`t
have been and, overall, we had too big oI a short book. We`ve done our best to identify,
acknowledge and correct these mistakes.

We`re convinced, however, that a bigger reason Ior our underperIormance, especially last month,
is our investment strategy, which is rooted in deviating from the crowd with contrarian bets. It`s
the only way to outperform the market over the long term, but it also carries with it the risk
indeed, the certainty that there will be periods during which one underperforms the market,
which is why most money managers don`t do it. BuIIett once said, 'As a group, lemmings have
a rotten image, but no individual lemming has ever received bad press. Jean-Marie Eveillard
put it even more succinctly: 'It`s warmer inside the herd.

It`s easy to deviate Irom the crowd, oI course, but it`s much harder to be right and even harder
to be right on the timing. For example, as we discuss below, we`re conIident that Iridium`s stock
will triple over the next 3-5 years but we don`t know when this will occur. In the meantime,
the stock can fluctuate quite widely, which can help (as in February) or hurt (as in March) our
short-term returns. We think we`ll eventually be proven right on the positions we hold, both
long and short, but sometimes it takes time for our investment theses to play out.

This letter brought to you by MarketFolly.com
-2-

Ber kshi re Hathaway
Berkshire dropped 2% on the last day of the month due to the resignation of David Sokol, who
had been widely believed to be Warren BuIIett`s heir apparent. We were surprised and
disappointed by the news for two reasons: 1) We think Sokol is a first-rate executive who`s done
an excellent job managing MidAmerican Energy, Johns Manville and NetJets; and 2) We share
the concerns expressed by many others about the troubling appearance of his stock trades in
Lubrizol.

That said, as investors in Berkshire Hathaway, what we really care about is the company`s
intrinsic value, which we think remains intact. Buffett is at the top of his game and is in
excellent health, so we think it`s highly likely that he will continue to run Berkshire for at least
the next five years, if not the next 10. Thus, the resignation of a potential successor at this point
is almost irrelevant. In any case, the company has a deep bench of seasoned managers. The
media frenzy around Sokol will soon pass and investors will then refocus on what really matters:
the $1 billion per month (and growing) that is pouring into Omaha for Buffett and Munger to
allocate.

Our slide presentation on Berkshire Hathaway, in which we peg the stock`s intrinsic value at
nearly $170,000/A share (vs. March`s closing price oI $125,300, is posted at:
www.tilsonfunds.com/BRK.pdf.

I ridium
Iridium fell during the month for two reasons: it reported quarterly earnings that, while strong,
were apparently lower than what some analysts had expected, and a large inside shareholder sold
four million shares, which knocked the stock down nearly 10% in the last two days of the month.
Regarding the latter, the seller was Syndicated Communications, a private equity fund that had
owned Iridium as a private company and sold it to the Greenhill SPAC, thereby taking the
company public. We expected the sale and are glad that this overhang on the stock is now gone.
In addition, the Iact that Iridium didn`t sell any stock demonstrates that it doesn`t need any
incremental proceeds to fund its operations, which is a positive in our view.

Regarding Iridium`s Q4 earnings report, we thought it was very strong:

x Adjusted EBITDA was up 40% year over year, thanks to 16,000 new subscribers.
x For the full-year, subscribers increased 25% to 427,000.
x Iridium affirmed its 2011 guidance, which reflects 20% subscriber growth and adjusted
EBITDA growth of approximately 16%.

Apparently some analysts were disappointed by these results, but they shouldn`t have been.
Here`s a summary oI the guidance the company gave throughout 2010, with the actual
performance in the last column:
-3-



Initial 2010
Guidance
Updated
Guidance, Q2
Updated
Guidance, Q3
Reported
Numbers
Total Billable Subscriber Growth 10-15% 20%+ Approx. 25% 24.9%
Commercial Service Revenue Growth 10-12% 12%+ 12%+ 11.2%
Government Service Revenue Growth 3-5% 5%+ 8-10% 9.8%
Equipment Revenue Growth single digit
mid to high
single digit
mid to high
single digit
8.0%
Operational EBITDA $145-155M At least $150M $155-160M $159M

In summary, the company increased its guidance throughout the year and then delivered on the
last guidance it gave (nitpickers might say they missed Commercial Service revenue growth, but
by less than 1%).

Our view of Iridium is unchanged and we continue to believe that the stock is deeply
undervalued.

Q1 Conference Call
Our Q1 conference call will be next Tuesday, April 12
th
from noon-1:30pm. The call-in number
is (712) 432-0075 and the access code is 781636#.

Conclusion
In their latest Kiplingers column, A Look at BuIIett`s Heir, John Heins and Whitney write about
Berkshire`s new hire, Todd Combs.

Thank you for your continued confidence in us and the fund. As always, we welcome your
comments or questions, so please don`t hesitate to call us at (212) 386-7160.

Sincerely yours,

Whitney Tilson and Glenn Tongue

The unaudited return for the T2 Accredited Fund versus major benchmarks (including reinvested
dividends) is:

March Year-to-Date Since Inception
T2 Accredited Fund net -4.3% -3.1% 176.3%
S&P 500 0.0% 5.9% 34.0%
Dow 0.9% 7.1% 77.4%
NASDAQ 0.0% 5.0% 31.1%
Past performance is not indicative of future results. Please refer to the disclosure section at the end of this letter. The T2
Accredited Fund was launched on 1/1/99.
Click here to read more hedge fund letters on MarketFolly.com
-4-


T2 Accredited Fund Performance (Net) Since I nception
-40
-20
0
20
40
60
80
100
120
140
160
180
200
Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11
(%)
T2 Accredited Fund S&P 500


T2 Accredited Fund Monthly Performance (Net) Since I nception
T2 S&P T2 S&P T2 S&P T2 S&P T2 S&P T2 S&P T2 S&P T2 S&P T2 S&P T2 S&P T2 S&P T2 S&P T2 S&P
A F 500 A F 500 A F 500 A F 500 A F 500 A F 500 A F 500 A F 500 A F 500 A F 500 A F 500 A F 500 A F 500
January 7.8 4.1 -6.3 -5.0 4.4 3.6 -1.8 -1.5 -5.5 -2.6 4.7 1.8 1.1 -2.4 1.9 2.7 2.4 1.7 1.9 -5.9 -3.6 -8.4 -1.6 -3.6 -2.8 2.4
Fe bruary -2.9 -3.1 6.2 -1.9 -0.6 -9.2 -1.1 -2.0 2.9 -1.6 7.0 1.5 2.1 2.0 -3.1 0.2 -3.3 -2.1 -6.9 -3.3 -8.9 -10.8 7.3 3.1 4.1 3.4
March 4.1 4.0 10.3 9.8 -2.6 -6.4 3.0 3.7 1.4 0.9 3.9 -1.5 3.9 -1.7 3.9 1.3 -0.8 1.1 -2.3 -0.5 2.9 9.0 4.6 6.0 -4.3 0.0
April 2.1 3.7 -5.1 -3.0 5.1 7.8 -0.2 -6.0 10.5 8.2 2.4 -1.5 0.6 -1.9 2.2 1.4 4.4 4.6 -0.9 4.9 20.1 9.6 -2.1 1.6
May -5.7 -2.5 -2.8 -2.0 1.8 0.6 0.0 -0.8 6.6 5.3 -1.4 1.4 -2.6 3.2 1.8 -2.9 2.5 3.3 7.9 1.2 8.1 5.5 -2.6 -8.0
June 2.2 5.8 4.1 2.4 4.6 -2.4 -7.3 -7.1 2.9 1.3 0.1 1.9 -3.1 0.1 -0.2 0.2 -3.0 -1.5 -1.2 -8.4 -5.0 0.2 4.5 -5.2
July -0.7 -3.2 -3.6 -1.6 -1.1 -1.0 -5.0 -7.9 2.3 1.7 4.6 -3.4 0.5 3.7 -0.9 0.7 -5.4 -3.0 -2.5 -0.9 6.8 7.6 3.5 7.0
August 4.1 -0.4 5.4 6.1 2.5 -6.3 -4.3 0.5 0.4 1.9 -0.9 0.4 -3.2 -1.0 2.9 2.3 1.7 1.5 -3.3 1.3 6.3 3.6 -1.5 -4.5
Se pte mbe r -3.3 -2.7 -7.2 -5.3 -6.1 -8.1 -5.4 -10.9 1.7 -1.0 -1.6 1.1 -1.5 0.8 5.0 2.6 -1.1 3.6 15.9 -9.1 5.9 3.7 1.7 8.9
Octobe r 8.1 6.4 -4.5 -0.3 -0.8 1.9 2.8 8.8 6.2 5.6 -0.4 1.5 3.5 -1.6 6.3 3.5 8.2 1.7 -12.5 -16.8 -1.9 -1.8 -1.7 3.8
Nove mbe r 2.8 2.0 -1.5 -7.9 2.3 7.6 4.1 5.8 2.2 0.8 0.8 4.0 3.1 3.7 1.9 1.7 -3.6 -4.2 -8.9 -7.1 -1.2 6.0 -1.9 0.0
De ce mbe r 9.8 5.9 2.3 0.5 6.5 0.9 -7.4 -5.8 -0.4 5.3 -0.2 3.4 -1.3 0.0 1.4 1.4 -4.3 -0.7 -4.0 1.1 5.5 1.9 0.5 6.7
YTD
T O T A L
31.0 21.0 -4.5 -9.1 16.5 -11.9 -22.2 -22.1 35.1 28.6 20.6 10.9 2.6 4.9 25.2 15.8 -3.2 5.5 -18.1 -37.0 37.1 26.5 10.5 15.1 -3.1 5.9
1999 2000 2001 2002 2003 2004 2011 2005 2006 2007 2008 2009 2010

Note: Returns in 2001, 2003, and 2009 reflect the benefit of the high-water mark, assuming an investor at inception.
-5-


T2 Accredited Fund, LP (the 'Fund) commenced operations on January 1, 1999. The Fund`s
investment 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. In carrying out the Partnership`s investment objective, the Investment Manager, T2
Partners Management, LLC, seeks to buy stocks at a steep discount to intrinsic value such that
there is low risk of capital loss and significant upside potential. The primary focus of the
Investment Manager is on the long-term fortunes of the companies in the Partnership`s portfolio
or which are otherwise followed by the Investment Manager, relative to the prices of their stocks.

There is no assurance that any securities discussed herein will remain in the Fund`s portfolio at
the time you receive this report or that securities sold have not been repurchased. The securities
discussed may not represent the Fund`s entire portfolio and in the aggregate may represent only a
small percentage of an account`s portfolio holdings. It should not be assumed that any of the
securities transactions, holdings or sectors discussed were or will prove to be profitable, or that
the investment recommendations or decisions we make in the future will be profitable or will
equal the investment performance of the securities discussed herein. All recommendations within
the preceding 12 months or applicable period are available upon request.

Performance results shown are for the T2 Accredited Fund, LP and are presented net of
management fees, brokerage commissions, administrative expenses, other operating expenses of
the Fund, and accrued performance allocation or incentive fees, if any. Net performance
includes the reinvestment of all dividends, interest, and capital gains. Performance for the most
recent month is an estimate.

The fee schedule for the Investment Manager includes a 1.5% annual management fee and a 20%
incentive fee allocation. For periods prior to June 1, 2004, the Investment Manager`s fee
schedule included a 1% annual management fee and a 20% incentive fee allocation, subject to a
10% 'hurdle rate. In practice, the incentive fee is 'earned on an annual, not monthly, basis or
upon a withdrawal from the Fund. Because some investors may have different fee arrangements
and depending on the timing of a specific investment, net performance for an individual investor
may vary from the net performance as stated herein.

The return of the S&P 500 and other indices are included in the presentation. The volatility of
these indices may be materially different from the volatility in the Fund. In addition, the Fund`s
holdings differ significantly from the securities that comprise the indices. The indices have not
been selected to represent appropriate benchmarks to compare an investor`s performance, but
rather are disclosed to allow for comparison of the investor`s performance to that of certain well-
known and widely recognized indices. You cannot invest directly in these indices.

Past results are no guarantee of future results and no representation is made that an investor will
or is likely to achieve results similar to those shown. All investments involve risk including the
loss of principal. This document is confidential and may not be distributed without the consent
of the Investment Manager and does not constitute an offer to sell or the solicitation of an offer
to purchase any security or investment product. Any such offer or solicitation may only be made
by means of delivery of an approved confidential offering memorandum.