Billionare David Tepper’s hedge fund firm, Appaloosa Management, celebrated its 20th anniversary in 2013 and it’s turning into a year to remember for the former Goldman Sachs trader. Tepper’s big Palomino hedge fund posted net returns of 37.86% through the end of November…The Standard & Poor’s 500 index returned 29.1% this year through November. [Forbes, Related: David Tepper Has A Message For Jon Corzine]
An Investor Who Put $1 Million Into Appalossa Managment In 1993 Would Have Enough Money To Buy And Bulldoze Several Of Jon Corzine’s Houses TodayBy Bess Levin
David Tepper’s Appaloosa Management LP returned 17 percent in the first half of the year, according to a letter sent to investors last week…His returns this year have beaten the Standard & Poor’s 500 Index, which was up 14 percent with dividends reinvested, and event-driven funds, which returned 5.3 percent, according to Hedge Fund Research Inc. Appaloosa, based in Short Hills, New Jersey, has returned 28 percent a year, on average, since it started, said the letter, signed by Tepper. The firm celebrated its 20th anniversary last month. An investor who put $1 million into the fund in 1993, would have $149 million today, it said. [Bloomberg, related]
And anchor Stephanie Ruhle’s Joe Namath moment, which we’ll allow, because he really does have a beautiful singing voice.
“Of the top 25 earners of 2010, 15 did not make this year’s list [of highest paid hedge fund managers]. Among them: Appaloosa’s David Tepper, whose Palomino fund fell 3.33 percent, and Edward Lampert of ESL Partners, which plunged 12 percent on big losses from Sears Holdings. Mr. Tepper did not respond to requests for comment. A spokesman for ESL declined to comment. Mr. Paulson — the $5 billion manager in 2010 — failed to make the list this time. One of his largest funds lost more than 50 percent, after bets on the economic recovery soured. A spokesman for Paulson declined to comment.” [Dealbook, AR, related: "Mr. Tepper keeps a brass replica of a pair of testicles in a prominent spot on his desk...He rubs the gift for luck during the trading day."]
Apparently the Appalossa chief has “completely eliminated his 17 million shares position” in BAC, as well as his entire Wells Fargo stake. He does still own Citi but Count Vikula appears to be on this ice (the position has been “sharply reduced”). [CNBC, earlier]
Nate Thoma is 33 year-old with “scruffy beard” who lives in Queens and sometimes wears plaid shirts. He’s also a sometime day trader who has “about $500,000 in investments” and in fall 2008, saw his investment in Washington Mutual wiped out after regulators seized the bank. Thoma spent “weeks in front of his Scottrade account, trying to figure out how to recoup money he had lost” and after studying WaMu’s capital structure “saw an opportunity to make it back.” Read more »