Hedge Fund Manager Tapped As Buffett Successor

Sep 12 2011 | 2:29pm ET

For the third time in little more than a year, Berkshire Hathaway has hired an obscure hedge fund manager as a potential successor to Warren Buffett—one who bought his way to Buffett's attention.

Ted Wechsler of Peninsula Capital Partners will start with only a small piece of Berkshire's $66 billion. But when the 81-year-old Buffett steps aside, Wechsler and Todd Combs, the hedge fund manager hired by Berkshire last year, will manage the company's stock and bond investments, possibly with a third person, Berkshire said in a statement today.

"With Todd and Ted on board, Berkshire is well-positioned for successor investment management at the time Mr. Buffett is no longer CEO," Berkshire said.

Wechsler has won the past two auctions to dine with Buffett—a meal he offers for charity annually. All told, Wechsler paid in excess of $5 million for what amounted to a job interview; Buffett asked him to join Berkshire at the second dinner, an offer Wechsler accepted within weeks.

Like Combs, who shuttered his Castle Point Capital, Wechsler told investors in his Charlottesville, Va.-based fund that he'll wind it down before joining Berkshire early next year. Peninsula manages about $2 billion. Another hedge fund manager tapped as a possible Buffett replacement, Li Lu, continues to work for his own firm.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…