Warren Buffett Meant To Be More Specific When He Said Hedge Fund Managers Rob Their Clients Blind

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As you may have heard, Warren Buffett has tapped a Berkshire Hathaway successor in the 39 year-old Todd Combs, the manager of Greenwich-based Castle Point Capital Management. Previously, the Oracle had this to say with regard to hedge fund managers:

[In 2006 Buffett opined] that hedge funds, which he described as “hyper-helpers,” overcharge investors. “Particularly expensive is the recent pandemic of profit arrangements under which Helpers receive large portions of the winnings when they are smart or lucky,” he said in an annual letter.

To be clear, however, he just meant to say that some, and not all hedge fund managers, are blood-sucking leeches.

“He’s not tarring every hedge fund manager with the same brush,” said David Kass, finance professor at the University of Maryland. “Warren has said that he hires people who he likes, those that share his same work ethic and value system. They love their work more than the money.”

Buffett Picking Combs Means Defense Beats Offense At Berkshire [Bloomberg]

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