A Look At Buffett Pick Ted Weschler's Portfolio Holdings

by: The Manual of Ideas

Warren Buffett has tapped Ted Weschler to manage a piece of Berkshire Hathaway's (NYSE:BRK.A)(NYSE:BRK.B) investment portfolio. Weschler has been managing partner of Charlottesville, VA-based value-oriented hedge fund Peninsula Capital Advisors.

Here is a look at Weschler's long equity holdings at the end of Q2. Of note is the high concentration of the $2 billion stock portfolio, with one-half of the disclosed portfolio invested in just two companies -- DirecTV (NYSE:DTV) and W.R. Grace (NYSE:GRA). Both companies' stock prices advanced during the second quarter.

Peninsula Capital Advisors – Long Portfolio, June 30, 2011

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We also present a snapshot of key trading, valuation and performance metrics of the companies in Peninsula's long portfolio. Of note is that most of the companies have negative tangible book value, a sign that Weschler may be more of a Buffett-style "quality-at-a-reasonable-price" investor than a Graham-style deep value investor.

Peninsula Capital Advisors – Selected Data on Portfolio Companies

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Finally, we note that it is highly unusual for a die-hard value investor and Buffett follower such as Weschler to remain nearly anonymous within the value investment community, especially considering Peninsula's fairly large assets under management ($2+ billion). The fact that Weschler insisted on being an anonymous bidder for the charity lunch with Buffett in 2010 and 2011 only underscores the degree to which Weschler has preferred anonymity within the fairly tight-knit value community. This non-promotional attitude must have appealed to Buffett.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.