David Tepper – Appaloosa Management

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David Depper Net Worth: $5.5 billion

Born on: Sep 11, 1957 (Age: 55) Virgo
Born in: Stanton Heights
Marital status: Married
Occupation: Founder of Appaloosa Management, Hedge Fund Manager

David Tepper, 55,   is one of the top hedge fund managers and the founder of Appaloosa Management. He is also in Forbes magazine hedge fund manager top earner – $2.2 billion.

David Tepper ( born on September 11, 1957 ) continues to make a good case that he is one of the great hedge fund investors of all time. While most hedge funds underperformed the U.S. stock market in 2012, Tepper trounced it. His flagship hedge fund successfully bet on stocks and other securities at key moments in 2012, posting a net return of nearly 30%.

His $15 billion Appaloosa Management has been knocking out annual net returns of about 30% since 1993. Tepper gave back some cash to his investors at the end of the year. He has continued to focus his philanthropy on educational efforts like Teach for America and feeding the hungry in his home state of New Jersey, where he has donated significantly to food banks over the past five years.

David Tepper with his wife

David Tepper with his wife

He earned his BA in Economics from the University of Pittsburgh in 1978 and his MBA (then known as an MSIA) from Carnegie Mellon in 1982. Tepper attended the University of Pittsburgh and helped pay his way through school by working at the Frick Fine Arts library. He graduated with honors, receiving his Bachelor of Arts degree in economics. He also dabbled in the markets during college. After graduation he entered the finance industry, working for Equibank as a credit analyst in the treasury department. In 1980, unsatisfied with this position, he enrolled at Carnegie Mellon University’s business school to pursue its version of an MBA at the time, a Master of Science in Industrial Administration (MSIA).

tepperCareer After earning his MBA in 1982, Tepper accepted a position in the treasury department of Republic Steel in Ohio. In 1984, he was recruited to Keystone Mutual Funds (now part of Evergreen Funds) in Boston, and in 1985, Tepper was recruited by Goldman Sachs, which was forming its high yield group. He joined the firm in New York City as a credit analyst. Within six months, Tepper became the head trader on the high-yield desk at Goldman where he worked for eight years. His primary focus was bankruptcies and special situations.

He left Goldman in December 1992 and started Appaloosa Management in early 1993. In 2001 he generated a 61% return by focusing on distressed bonds, and in the fourth quarter of 2005 he pursued what he saw as better opportunities in Standard & Poor’s 500 stocks. He makes significant gains year after year by “investing in the diciest of companies,” such as MCI and Mirant.

 

Net Worth: $5.5 billion
Tepper is doing pretty well in 2012. His Palomino fund was up 13.3% net of fees through the first half of the year, after sinking 5.09% in 2011. A trader at Goldman Sachs, the Pittsburgh native left to start Appaloosa Management in 1993 after he failed to make partner. Appaloosa now manages $12 billion. In 2009, Tepper, who lives in New Jersey, made one of the most legendary trades ever, earning $7 billion for his hedge fund by buying the shares of beaten down banks like Bank of America. In 2011 Tepper razed the Sagaponack beach house he had bought from Jon Corzine’s ex-wife for $43 million in 2010. Tepper is a minority owner of the Pittsburgh Steelers.

Read more about David Tepper’s  lavish real-estate

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