Allan Mecham’s New Big Bet

Last month, we met Allan Mecham of Arlington Value Management, a.k.a. The 400% Man. This week, SmartMoney profiled Mecham’s newest big bet: a levered position in Berkshire Hathaway (NYSE: BRK.A, BRK.B):

[L]ast year he levered up the fund and has invested half the money in Warren Buffett’s Berkshire Hathaway.

“Able to borrow at around 1.5%, we levered (Berkshire) into a 50%+ position,” he wrote in his annual letter to shareholders. “Though not advocates of leverage, we . . .

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Allan Mecham: The 400% Man

SmartMoney Magazine recently profiled Allan Mecham, a 34-year old college drop-out turned value investor at Arlington Value Management, who returned a cumulative 400% return over the twelve years ending December 31, 2011 (including the astonishing 11% in 2008 and 59% in 2009 when the market was cratering). Rather than investing in unknown microcaps that soar after being “discovered” by the mainstream financial community, much of Mecham’s returns have been earned from large caps.

Mecham attended a community college and . . .

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