Weschler founded Peninsula Capital in 1999, and is a managing partner of the firm, based in Charlottesville, Va. The hedge fund makes investments in publicly traded companies. Peninsula Capital held a concentrated portfolio of nine stocks as of June 30 that was worth nearly $2 billion, according to documents filed with the Securities and Exchange Commission.
Berkshire has said that the board has a list of four internal candidates to replace Buffett as chief executive, but Buffett has always refused to name them.
Berkshire said Buffett will continue to manage most of the company’s investments “until his retirement.’’
Stifel Nicolaus analyst Meyer Shields said he believes the use of the word retirement may be significant because previously Buffett had suggested he would continue working until he either became incapacitated or died.
“The word retirement seems sort of jarring to us,’’ Shields said.
Andy Kilpatrick, the stockbroker-author of “Of Permanent Value, the Story of Warren Buffett,’’ said it is unusual for Berkshire or Buffett to use the word retirement, but he doesn’t expect imminent change at the company. And Weschler’s hiring helps clarify the succession plan a bit.
“I think that should give some relief to people who are wondering what’s going to happen,’’ Kilpatrick said.
Buffett did not immediately respond to a request for an interview Monday.
Weschler’s hiring comes after Berkshire last fall named Todd Combs to help run a portfolio of roughly $1 billion to $3 billion of investments. Weschler also will run a segment, but Monday’s release didn’t specify the size of the portfolio he will run.
Monday’s announcement said that Combs and Weschler will eventually share responsibility for Berkshire’s entire equity and debt portfolio, after Buffett no longer serves as CEO. The announcement said that they could be aided by one additional manager, and their management of the entire portfolio would be subject to the direction of the CEO at that time, as well as the company’s board.
