Buffett's Ex-Hedge Fund Managers Outperform Oracle

Jan 21 2014 | 11:54am ET

Warren Buffett is proving to have as keen an eye for talent as he has for investment opportunity. In fact, if last year's any indication, he's an even better talent scout than he is an investor.

Two former hedge fund managers hired by the Berkshire Hathaway chief a few years ago to eventually succeed him outdid the Oracle of Omaha in 2013. Indeed, both Todd Combs and Ted Wechsler managed to beat the Standard & Poor's 500 Index's more than 30% return for the year, a feat that eluded the overwhelming majority of their former hedge-fund manager peers.

For his own part, Buffett failed to meet or exceed his own performance target for the first time in the nearly 50 years since he took control of Berkshire, The Wall Street Journal reports.

Combs and Wechsler, who also topped the S&P 500 in 2012, each manage about $7 billion of Berkshire's $100 billion portfolio. It is unclear exactly how well each did last year.

"They have helped Berkshire in significant ways that are not directly connected with investment management," Buffett told the Journal. "They'll both be huge assets for decades to come."

Buffett hired Combs, who ran Castle Point Capital, in 2010, and Wechsler, who ran Peninsula Capital partners, in 2011.


In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of