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Value investing nerds and Buffett admirers rejoice. We have a new portfolio manager for Berkshire Hathaway (NYSE:BRK.A) who was hand-picked by Buffett himself. His name is Ted Weschler and we get to drill into his past performance at Peninsula Capital Advisors.
Buffett’s close friend provided us some details on Mr. Weschler and his past record. And it is quite remarkable:

For partners who invested with Peninsula in early 2000, the fund at the end of 2011's first quarter had delivered a total gain of 1236% (a percentage so large it looks like a typo, but isn't). In contrast, Berkshire B had gained a mere 146%

We all know that the stock market has gone nowhere over the time that Peninsula has been open so this kind of performance is extraordinary. It is quite likely that Weschler will take a serious pay cut to come to Berkshire which will not compensate in line with what a successful hedge fund manager makes.
Let’s have a look at the past two SEC filings that reveal just what Weschler has been recently invested in:


Value (K)
Shares
%
Value (K)
Shares
%
Holding
6/30/11
6/30/11
6/30/11
3/31/11
3/31/11
3/31/11
Cincinnati Bell
(NYSE:CBB)
$65,736
19.8M
3.36%
$53,064
19.8M
3.15%
Cogent Communications (NASDAQ:CCOI)
$68,040
4M
3.48%
$57,000
4M
3.39%
Davita Inc (NYSE:DVA)
$372,423
4.3M
19.04%
$367,693
4.3M
21.84%
DirecTV (NASDAQ:DTV)
$508,200
10M
25.98%
$327,600
7M
19.46%
FiberTower Corp (NASDAQ:FTWR)
$8,196
6.83M
0.42%
$13,728
6.83M
0.82%
Liberty Media
$231,525
2.7M
11.83%
$228,377
3.1M
13.56%
Valassis Communications (NYSE:VCI)
$151,500
5M
7.74%
$145,700
5M
8.65%
WSFS Financial (NASDAQ:WSFS)
$59,475
1.5M
3.04%
$70,650
1.5M
4.20%
Grace WR (NYSE:GRA)
$491,234
10.76M
25.11%
$412,215
10.76M
24.48%
Tivo (NASDAQ:TIVO)
$0
0
0.00%
$7,656
875,000
0.45%
Total
$1,956,329
100%
$1,683,680
100%
I have to say that a look into this portfolio warms this business focused value investor’s heart.
Look at the concentration in the top holdings:
DirecTV – 25.98%
WR Grace – 25.11%
Davita Inc – 19.04%
Liberty Media – 11.83%
I’m rounding, but that appears to be 80% of the portfolio in just four names. Truly, Buffettesque.
And apparently a business focused long term approach to investing as the only changes in holdings from quarter one to quarter two were:
Add 3 million shares of DirecTV
Sell 400,000 shares of Liberty Media
Sell 875,000 shares of Tivo
This is a man who is following exactly what Buffett has taught us. Invest in a few companies that you understand well, that are undervalued and hold them until Mr. Market figures out what you know. And it appears that Weschler has some real knowledge in the media space, as the portfolio is heavily skewed in that direction.
Here and here are the links to the SEC filings detailing the Peninsula holdings.
Congratulations on your new job Mr. Weschler. You now have hundreds of wannabe value investors scrambling to get familiar with this concentrated portfolio to see if we can profit from your ideas.

Disclosure: I am long BRK.A.

Source: A Look At The New Berkshire Portfolio Manager's Holdings