In a news release announced on Monday, Warren Buffett’s Nebraska-based Berkshire Hathaway said that hedge fund manager Todd Combs would join Berkshire Hathaway as an investment manager to handle a significant position that would eventually lead the firm to manage and expand its portfolio. Berkshire Hathaway, at present, owns numerous businesses focused on the insurance sector and a huge amount of liquidity involved in stocks.
According to Warren Buffett, one of the world’s richest tycoons, the new yet unexpected move fits with the succession plan, which the 80-year-old has outlined for the company he owns and leads since 1965.
Buffett had addressed his succession agenda in May this year and as per his plan his position would ultimately be split into a CEO role that would be taken care of by three or four investment chiefs.
Since then there has been a speculation on the kind of recruitments Buffett’s Berkshire Hathaway would make.
Buffett made a significant statement in his company news release, he said that he and his business partner Charlie Munger looked for someone like Combs for three years and they finally found Combs, who will now handle a significant position of Berkshire Hathaway’s investment portfolio.
“We are delighted that Todd will be joining us,” added Buffett.
James Armstrong, owner of the Berkshire stocks and president of Pittsburgh-based Henry H. Armstrong Associates said, “The fact that he’s come public with one of the names means he must be pretty confident in Mr. Combs, or why release the name. It’s not been his practice.” Armstrong oversees $ 400 million.
Combs’ appointment news, however, was surprisingly revealed right after Berkshire disclosed a dispute with securities regulators over its accounting for investments.
Todd Combs: Fact File
39-year-old Todd Combs has been managing Castle Point Capital, a financial service, as a hedge fund manager since five years. Combs has reportedly been able to manage $ 395 million since the firm’s inception in November 2005 till July 2010 and his fund climbed 28% up during the mentioned period.
Combs issued a letter to the limited partners of Castle Point Capital after Berkshire’s announcement that he is joining them.
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