Mr. Weschler 50, received his B.S. in Economics with concentrations in finance and accounting from The Wharton School of the University of Pennsylvania.
Ted Weschler the highly successful managing partner of hedge fund Peninsula Capital Advisors
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%.
Weschler’s investment style has been to own only a few stocks and to stay with them — a modus operandi sure to have endeared him to Buffett, whose style is the same. Peninsula’s latest 13F filing, for the quarter ended in June, showed the fund holding 11 stocks.
Those of you that think Buy and hold or diversified portfolios doesn’t work.Think again
His latest filing, for the second quarter of 2011, gives his long position in stocks as almost $2 billion. (That amount would no doubt be higher, were it not that Weschler closed the fund to new money in the 2004-2005 period).
But that $2 billion in long positions only partly tells the story, because in true hedge-fund style, Weschler shorts stocks (positions that do not have to be reported in 13Fs) and also borrows money to leverage the fund’s capital.
At Berkshire, Weschler’s shorting is likely to cease and certainly leveraging will. Charlie Munger, Berkshire’s vice-chairman, has long said that most of the world’s ills are caused by “liquor and leverage.”