New Berkshire Manager Short on Experience: Fund Exec

Berkshire Hathaway would have been wiser to outsource investing advice to hedge funds rather than hire a manager whose experience is concentrated in one sector, another fund's manager told CNBC Tuesday.

The New Warren Buffett
The New Warren Buffett   

“It sounds like this guy is really going to have a lot to learn,” said Mark Hake, president of Hake Investment Research, referring to Todd Combs, a hedge fund manager that Berkshire Hathaway tapped Monday to manage a large portion of its $100 billion portfolio.

“I’m not impressed with what Berkshire has done with this [hiring],” Hake added.

The legendary investor Warren Buffett is the chairman and CEO of Berkshire and its public face.

Combs is the manager of Castle Point Capital Management, a $400 million fund whose portfolio focuses on such financials as U.S. Bancorp , Mastercard , State Street and Western Union . Since the fund began in 2005, it has risen 28 percent through June 2010.

On the plus side, Hake said, Combs is a "value guy" who, like Buffett, is smart and whose fund has performed well.

Andrew Kirkpatrick, author of the biography "Of Permanent Value: The Story of Warren Buffett," said that Combs will be Buffett’s expert on banks and insurance companies.

“The main thing is what [Buffett and Combs] have not invested in,” said Kirkpatrick, “and those things are similar—like not AIG, not Lehman.”