Saturday, 20 September 2014
Last updated 12 hours ago
Jul 30 2010 | 1:29pm ET
With succession in mind, one of the world’s most famous investors is poised to hire a hedge fund manager to help him run his firm’s portfolio.
Berkshire Hathaway’s Warren Buffett plans to hire hedge fund manager Li Lu, a student leader of the Tiananmen Square democracy protests in 1989, The Wall Street Journal reports. The 44-year-old Li is believed to be the leading contender to take over management of Berkshire’s $100 million portfolio when the 80-year-old Buffett retires.
“In my mind, it’s a foregone conclusion,” Berkshire Chairman Charlie Munger said of Li’s hiring. Li and Munger are longtime friends.
Li founded his hedge fund, Himalaya Partners, in 1997, and has since founded a technology venture capital fund. The former dissident, who escaped to France and then to the U.S. in the wake of the Chinese crackdown following Tiananmen, has already earned Berkshire about $1.2 billion after introducing Munger to Chinese battery and auto maker BYD Co.
That investment helped Himalaya post a 26.4% compound annualized return since 1998. But the Journal warns that, aside from the BYD investment, Himalaya’s performance is “unremarkable.” The fund, which soared 200% last year in no small part due to BYD, is down 13% this year.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.