Buffett's successor tipped as Chinese hedge fund manager

Chinese hedge fund manager Li Lu may be Warren Buffett's successor at Berkshire Hathaway.

Lu, who has a close relationship with Berkshire vice chairman Charlie Munger, may manage a chunk of Berkshire's portfolio, according to the Wall Street Journal.

Buffett remains active as chairman of Berkshire at age 79 and has always been tight-lipped about his replacement.

Li's Group owns about 2.4% of BYD, a maker of mobile phone batteries that has evolved into one of China's largest non-government-owned carmakers.

He is believed to have helped set up the deal which saw Berkshire invest in the company in 2008.

Over the years, Li appeared in BYD's annual reports as a significant investor, but the company would not provide information about his role in the business.

Li is a Chinese-American whose hometown is Tangshan. His parents were prosecuted during the country's chaotic Cultural Revolution and he later participated in protests at Tiananmen Square in 1989.

After leaving China, Li earned three degrees from Columbia University and went on to build a career in finance in part with human rights connections.

His funds have returned 26% since 1998 versus 2.2% for the Standard & Poor's 500 stock index.