WARREN BUFFETT advanced his succession plan yesterday by naming Ted Weschler, a low-profile hedge fund manager who has produced outsized returns in the last decade, to help manage the investments of Berkshire Hathaway.
Mr Weschler will start early next year and work with Todd Combs, who joined Berkshire last year, to manage its equity portfolios. Mr Buffett (81) has said he may also bring in a third manager, but meanwhile he continues to oversee the lion’s share of the company’s $52.36 billion (€38.40 billion) in US equities.
Mr Weschler (50), like Mr Combs before him, has succeeded while keeping a low profile far from the canyons of Wall Street.
The Charlottesville, Virginia-based money manager delivered total gains of 1,236 per cent over the last 11 years, according to investors. Over the same period of time, Berkshire’s own class B shares have risen 84 per cent and the SP 500 index has fallen nearly 23 per cent.
As of June 30th, his Peninsula Capital Advisors had long positions in about $2 billion worth of stock, according to regulatory filings. Mr Combs was managing about $400 million when he was hired.
Since Mr Combs was hired, Mr Buffett has made it clear there would be more people added to the investment team to replace him eventually. When and how many, however, have been open questions that have weighed on Berkshire’s stock, some analysts following the stock have said in recent weeks. – (Reuters)
