In a move that is sure to stun even the most ardent Warren Buffett watchers, Berkshire Hathaway(BRKA,BRKB) announced today that they have hired Todd Combs to “handle a significant portion of Berkshire’s investment portfolio” as an investment manager.
Mr. Combs, who has heretofore been largely unknown, has been managing a hedge fund for Castle Point Capital for the past 5 years. His most recent 13-F lists the following holdings:
Name of Issuer Title Cusip Mkt Val Shr/Prn Class (USD) Amount AERCAP HOLDINGS NV ORD CMN COM N00985106 9,529,000 918,001 SH ANNALY CAPITAL MANAGEMENT, INC CMN COM 035710409 12,245,000 714,000 SH BLACKROCK INC. CMN COM 09247X101 5,119,000 35,700 SH BROADRIDGE FINANCIAL SOLUTIONS INC COM 11133T103 9,716,000 510,000 SH CIT GROUP INC CMN CLASS A COM 125581801 12,088,000 357,000 SH CME GROUP INC. CMN CLASS A COM 12572Q105 14,360,000 51,000 SH CHATHAM LODGING TR COM COM 12608T102 1,914,000 107,100 SH CHUBB CORP CMN COM 171232101 12,753,000 255,000 SH WTS/FIRST FINANCIAL BANCORP 12.90 WTS 320209117 2,135,000 304,917 SH GENWORTH FINANCIAL INC CMN CLASS A COM 37247D106 7,999,000 612,020 SH GOLDMAN SACHS GROUP, INC. CMN COM 38141G104 10,712,000 81,600 SH HARTFORD FINANCIAL SRVCS GROUP CMN COM 416515104 4,515,000 204,000 SH JPMORGAN CHASE & CO CMN COM 46625H100 11,203,000 306,000 SH LEUCADIA NATIONAL CORP CMN COM 527288104 4,976,000 255,000 SH MB FINANCIAL INC. NEW CMN COM 55264U108 9,379,000 510,000 SH MASTERCARD INCORPORATED CMN CLASS A COM 57636Q104 20,352,000 102,000 SH PENNYMAC MTG INVT TR CMN COM 70931T103 12,974,000 816,003 SH WTS/THE PNC FINANCIAL SERVICES GRP WTS 693475121 2,144,000 185,000 SH PROGRESSIVE CORPORATION CMN COM 743315103 11,457,000 612,000 SH RENAISSANCE RE HOLDINGS LTD CMN COM G7496G103 14,349,000 255,000 SH CHARLES SCHWAB CORPORATION CMN COM 808513105 10,125,000 714,000 SH STARWOOD PROPERTY TRUST INC CMN COM 85571B105 12,535,000 739,500 SH STATE STREET CORPORATION(NEW) CMN COM 857477103 18,973,000 561,000 SH U.S. BANCORP CMN COM 902973304 22,797,000 1,020,000 SH UNITED AMERICA INDEMNITY LTD CMN CL A COM 90933T109 5,255,000 714,000 SH WELLS FARGO & COMPANY NON-CUM PERPET CNV 949746804 1,862,000 2,000 SH WESTERN UNION COMPANY CMN COM 959802109 18,250,000 1,224,000 SH
A first glance shows many financial and insurance names. We have not yet had a chance to go back over previous 13-Fs to review changes, but we’re certain that scores of such analysis are going on as we write.
Mr. Combs is 39, and well fits with Mr. Buffett’s stated goal of hiring managers who are likely to remain at Berkshire for several decades.
Update: As is often the case with Bufffett-related stories, Carol Loomis of Fortune gets the scoop. Loomis spoke to Buffett about Combs, and described him as an “All-American type” and not interested in publicity. He also revealed that, like Li Lu, Combs had been introduced to him by Munger. Loomis also provides some more analysis of Combs’ track record.
Disclosure: The author owns shares of BRKB
