July 28, 2021

David Tepper, the speculator who turns stocks into solid gold

David Tepper, 56, CEO of US hedge fund Appaloosa Management, triumphs. Think about it: his fund Palomino, specializing in US equities, achieved a return of 42% in 2013. The speculator has beaten the two US stock indexes, the Standard & Poor’s 500 and the Dow Jones Industrial Average, which does not ‘won only 29.1% and 27% respectively. From September, David Tepper successfully bet on banks, insurers and real estate developers across the Atlantic.

His remuneration in 2013 amounted to $ 3 billion (2.2 billion euros), which makes David Tepper the highest paid hedge fund manager in the United States, according to the list published on December 30. through Institutional Investor. Its fund manages $ 21 billion in assets, mostly from institutional investors. A success story which America still has the secret.

FINESSE OF ANALYSIS, FLAIR AND COMMERCIAL FIBER.

An attractive round face, a cold look, a bald head, a fleshy mouth ready to smile, but also to taunt … the boss of Appaloosa Inc – who works in t-shirt, blue jeans and sneakers alongside his employees in soulless premises, deep in New Jersey – is known for its analytical skills, flair and commercial flair.

The graduate of Carnegie Mellon University, located in Pittsburgh, Pa., Got his start at Goldman Sachs in the ruthless trading of junk bonds, bad bonds, poor relatives of financial instruments. Thanks to these highly risky investments which he had made a specialty of, David Tepper made a lot of money for the firm as well as for him, before setting up on his own.

Its sparkling success in 2013 contrasts with the often disappointing performance of hedge funds, in particular stores specializing in commodities or macroeconomic strategies. Moreover, the quantum approach, under which investments are guided by computer models, has also faltered due to difficulties in reading the markets or predicting monetary policy decisions by central banks.

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