David Tepper of Appaloosa to Be Highest Paid Manager in 2013

December 30, 2013 James Heinsman In the News

Founder of Appaloosa Management, David Tepper, will most likely be the highest paid hedge fund manager for 2013, bringing in an estimated $3 billion in personal income. This achievement is made even more impressive by the fact that last year Tepper nurtured his fund to a 30 percent gain with a personal pay-off for himself of $2.2 billion. That feat earned him first place out of 25 on the yearly “Rich List” published by Institutional Investor Alpha.

This year Tepper’s Palomino fund rose by 38 percent, after fees, as of November 30. That stellar performance made the 56-year-old Tepper one of small handful of hedge fund managers to finish the year ahead of the 29.1 percent gain achieved by the S&P 500.

Tepper attributes his outstanding year to one part good strategy and one part good karma. His strategy in the aftermath of the 2008 financial crisis was to turn from being one of the smartest distressed debt investors to becoming a stellar macro investor, meaning he is great at betting on worldwide business trends.
As for karma, Tepper donated tens of millions of dollars to New Jersey food banks and shelters during the terrible aftermath of the 2008 financial crisis to keep those institutions viable as well as an equal contribution to helping institutions after Hurricane Sandy slammed into the Northeast with devastating destructive force.

“We always believed in this country,” Tepper explained. “We said it in 2008 and 2009 and again and again. We are on the verge of great things.”

The only other hedge fund manager who might surpass Tepper’s take home pay this year is John Paulson. His $20 billion firm has been doing quite well this past year after several years of serious losses in the double-digits.

Appaloosa Management, David Tepper, John Paulson, Palomino fund,

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