Wednesday, 23 July 2014
Last updated 25 min 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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…