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Yesterday Warren Buffett’s Berkshire Hathaway (BRK.B) announced it had hired Ted Weschler as an investment manager. Weschler will manage between $1 billion and $3 billion of Berkshire’s money when he starts next year.

Weschler currently runs a hedge fund. Here are his latest portfolio holdings:

  • DirecTV (DTV): 25.98%
  • W.R. Grace (GRA): 25.11%
  • DaVita (DVA): 19.04%
  • Liberty Media (LCAPA): 11.83%
  • Valassis Communications (VCI): 7.74%
  • Cogent Communications (CCOI): 3.48%
  • Cincinnati Bell (CBB): 3.36%
  • WSFS Financial (WSFS): 3.04%
  • FiberTower (FTWR): 0.42%

These are long positions only. Weschler also shorts stocks and uses leverage.

Weschler is an investor after my own heart. His top 5 positions make up 90% of his portfolio, and he spent time at two of the companies he owns: W.R. Grace and WSFS Financial. The W.R. Grace connection is well documented.

Weschler became a director of WSFS in 1992. He’s 50 now, so he must have become a director of WSFS at age 31 or 32. By age 34, Weschler is shown as a director of 6 different companies, and described as “the general partner for several investment partnerships.”

Weschler worked for Quad-C, which controlled Thrift Investors LP, which in turn owned 24.81% of WSFS Financial back in 1996 (the earliest date WSFS filed with EDGAR). So, in reality, Weschler was WSFS’s biggest shareholder as far back as the 1990s.

This supports the general impression that Weschler – like Buffett – buys what he knows. He holds few stocks. And he has relationships with some of these companies going back many, many years.

Source: What Berkshire's New Manager, Ted Weschler, Holds In His Hedge Fund