Did Greenlight’s Einhorn Reject Buffett?

Oct 28 2010 | 4:12am ET

Soon-to-be-former hedge fund manager Todd Combs may have been Warren Buffett’s third choice as one of his potential successors. Was David Einhorn the first?

The Wall Street blog Insider Monkey certainly thinks so. And it also thinks it knows why Einhorn turned down the opportunity to take over for the legendary Oracle of Omaha at Berkshire Hathaway: money.

Einhorn, who runs Greenlight Management, earns some $200 million a year, according to Insider Monkey. Buffett himself earns a $500,000 annual salary. The blog concludes, “David Einhorn is simply too expensive for Warren Buffett.”

But why Einhorn in the first place? Insider Monkey offers three good reasons and two, um, less good reasons. The blog cites his value investing and reinsurance backgrounds, as well as, of course, Greenlight’s impressive returns. Insider Monkey notes that the hedge fund has returned an annualized 22% after the fees that Buffett has frequently derided.

The other reasons? Einhorn is the same age as Combs, 42, and is a Midwesterner.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note