Hedge Fund - Greenhaven Associates

Edgar Wachenheim purchased Greenhaven Associates in 1998 from the Gottesman family. Edgar Wachenheim is a value investor. Edgar Wachenheim manages a fairly small-scale operation at Greenhaven Associates considering the size of its assets under management: billions of dollars are capital are invested through the fund, but because of its long-term investing horizon and its tendency towards a concentrated portfolio only a small number of analysts are needed. Wachenheim also stands out as an investor who has groomed other fund managers; for example, Chieftain Capital and Brave Warrior Capital are both managed by Greenhaven alumni.

Wachenheim’s investment process begins by the assumption that a low-priced stock is that way because of problems in the business which the market believes to be permanent (or at least long term). The question then becomes whether the market is correct- in which case the stock should be discarded as a potential investment- or if in fact the problems are short term in nature. Sometimes an entire industry or industry segment is afflicted by a short-term problem and so Greenhaven can then capitalize even further by investing in a larger theme.