As we've previously discussed, one of the tricky things about being David Tepper is figuring out what to do with your stack and stacks of money. Making it rain every single year is great but there is the downside of finding the space for all that cheddar. At this point in Tepper and Appaloosa's history, they're about one quarter away from busting at the seams and in order to remain nimble, need to figure out something, stat. Ideas rejected by Tepp so far include: having yet more molds of his lucky balls made, this time cast in gold- but nothing can beat the original brass ones; buying a private jet, but he already has NetJets, so no sense there; buying a professional sports team (he already has a minority stake in the Steelers and one naughty quarterback is more than enough to handle) and so on and so forth. Tepper has thrown around the idea of putting money to work sticking it to pricks who have it coming (“Sometimes if someone is an asshole, like a waiter at a restaurant, I think, I could just buy this place and fire that guy") but you don't need more than a few million for things like that and Tepps is trying to figure out what to do with billions. At the moment all he's come up with is investing it in other hedge funds so if you need money for that sort of thing, do consider getting in touch.
Tepper said in a recent interview that Appaloosa is planning to return money to investors so the firm’s hedge funds don’t get too big to run profitably. Tepper and other partners who work at Appaloosa have a chunk of their own money invested in the firm’s funds. So when money is returned, they will be getting cash too.
“We’ve had two very good years and internal partners will have a lot of money,” Tepper said. “At some point we will have to invest it somewhere.”
Still, Tepper said nothing official has been set up yet to back other hedge funds. “At some point we may do this,” he added. “In the next year potentially.” A final decision partly depends on what happens in the markets, he noted. “The world could blow up and we won’t return money because there’ll be more opportunities,” Tepper said.
So put your requests in A-sap and if you need money for something other than a fund, give that a shot, too. It sounds like Tepper is open to outside the box ideas.