Warren Buffett couldn’t hire superstar hedge fund manager David Einhorn but the managers he hired can imitate Einhorn’s long stock picks and generate similar results. Warren Buffett’s Berkshire disclosed a $256 million brand new position in General Motors (GM) during the first quarter. David Einhorn was the most bullish hedge fund manager about GM at the end of the fourth quarter. He still had nearly $400 million invested in the stock at the end of March. Here is what Einhorn said about GM in his investor letter: (more…)

Berkshire Adds DirectTV, Liberty Media (Bloomberg)

Berkshire Hathaway Inc. (BRK/A) boosted its stake in DirecTV and added holdings of Liberty Media Corp. and DaVita Inc. after billionaire Warren Buffett hired stock picker Ted Weschler to help manage investments. Weschler oversaw investments in all three firms while running Peninsula Capital Advisors LLC, the hedge fund he wound down after agreeing to join Omaha, Nebraska-based Berkshire. (more…)

Billionaire Falcone: No Lightsquared Bankruptcy (Reuters)

Hedge fund manager Philip Falcone is ruling out a bankruptcy filing for his telecom startup LightSquared Inc, one day after U.S. regulators said they planned to revoke approval for the company to build a national wireless broadband network.

Falcone Seeks Spectrum Swap for LightSquared (Bloomberg)

Billionaire Phil Falcone is seeking to swap spectrum owned by LightSquared Inc. with that controlled by the U.S. Department of Defense, a person with knowledge of the company said, in an effort to salvage his investment and save his hedge fund. Falcone’s Harbinger Capital Partners LLC has sunk $3 billion in LightSquared, a Reston, Virginia-based firm that plans to build a high-speed broadband network to serve 260 million Americans. The Federal Communications Commission said Feb. 14 it won’t let the company begin service because it interferes with GPS navigation of cars, boats, planes and tractors. (more…)

Paulson Files to Approach Hartford Holders About Breakup (Bloomberg)

Billionaire John Paulson, who controls an 8.4 percent stake in Hartford Financial Services Group Inc. (HIG), filed a document with regulators so he can approach other investors about his plan to break up the insurer. “We have done exhaustive research on the challenges and opportunities of the Hartford and believe that a spinoff would produce an increase in value for Hartford shareholders,” the hedge fund manager said in a letter to Chief Executive Officer Liam McGee that was published today in a statement. Hartford said in a separate statement it is willing to talk to Paulson and other investors about his proposal. (more…)

Hedge Funds Fall 4.9% As Long/Short, Macro Funds Suffer (FINalternatives)

Hedge funds sank almost 5% last year amidst market volatility and the European sovereign debt crisis. The Bloomberg Aggregate Hedge Fund Index ended 2011 down 4.9% after a 0.9% decline in December. By contrast, the Standard & Poor’s 500 Index ended the year essentially flat. Most of the industry’s losses were suffered in September, when the Bloomberg index fell 4.7%. (more…)

CNBC reports Ted Weschler, who paid $5.3 Million to have two meals with Warren Buffett, has just been hired to help manage the portfolio of Berkshire Hathaway.

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