netrashetty
Netra Shetty
Appaloosa Management is an employee-owned hedge fund founded by David Tepper and Jack Walton located in Chatham, New Jersey.[1][2]. Appaloosa invests in public equity and fixed income markets globally with a focus on "equities and debt of distressed companies, bonds, exchange warrants, options, futures, notes, and junk bonds."[1] According to BusinessWeek, Appaloosa client base consists of high net worth individuals, pension and profit sharing plans, corporations, foreign governments, foundations, universities, and other organizations."[1][2]
In 2007, the Financial Times reported that Appaloosa Management had "attracted interest for its large ownership position in Delphi, the bankrupt car parts supplier, and its clashes on whether management has the shareholders best interests in mind or those of GM and the UAW."[2]
In 2007, Appaloosa Management was ranked in the 100 Hedge funds to watch, the Financial Times ranking.[3]
Known as one of the country's most successful hedge-fund managers, David Tepper initially became interested in the stock market as a young boy watching his father trade stocks in his hometown of Pittsburgh. Today, as president and founder of Appaloosa Management, Tepper has earned an international reputation for being one of the highest earning fund managers on Wall Street.
Tepper, age 46, was raised in the East End of Pittsburgh in the city section known as Stanton Heights. He graduated from Peabody Senior High School in 1975 and attended the University of Pittsburgh, earning a bachelor's of arts with honors in Economics in 1978.
Upon graduation, Tepper became a credit and securities analyst at Equibank in Pittsburgh. In 1980, he enrolled in graduate school at Carnegie Mellon University's business school. 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.
Appaloosa Management is a $3 billion hedge fund investment firm based in Chatham, N.J., just west of New York City. Founded with Jack Walton, a former senior portfolio manager for Goldman Sachs Asset Management, the firm is a general partner of Appaloosa Investment Limited Partnership I and invests in debt and equity securities on behalf of individuals, foundations, universities and other organizations. Appaloosa Management also advises Palomino Fund, Ltd.
Tepper and his wife Marlene are the parents of three children. His personal interests include coaching his children's baseball, softball and soccer teams. Tepper currently serves as a member of the Business Board of Advisors for the Tepper School of Business at Carnegie Mellon and serves on various boards and committees for charitable and community organizations in New York and New Jersey.
Earlier today David Tepper confirmed that virtually everyone is now hypnotized by the biggest fallacy in the history of capital markets: that stocks determine the economy, and not vice versa. Incidentally, this is precisely what the Fed banks on, as confirmed previously by Alan Greenspan, who said on TV that the Fed is far more interested in keeping the stock market artificially high than actually caring about its mandate of keeping unemployment and inflation low. Of course, Tepper couldn't resist but talk his book, and providing the most childish and discredited validation for his bullishness: the Fed will do QE in perpetuity. "Either the economy is going to get better by itself in the next three months...What assets are going to do well? Stocks are going to do well, bonds won't do so well, gold won't do as well. Or the economy is not going to pick up in the next three months and the Fed is going to come in with QE. Then what's going to do well? Everything, in the near term though not bonds...So let's see what I got—I got two different situations: One, the economy gets better by itself, stocks are better, bonds are worse, gold is probably worse. The other situation is the fed comes in with money." We are too lazy to do it, because we have done it about one hundred times in the past, but we suggest Mr. Tepper pull up a chart of the Nikkei and superimpose on it all the times Japan launched ever more impotent episodes of QE and FX intervention. How did that work out? Yes, you can devalue currencies infinitely via QE, but that only destroys the real value of assets. And as we pointed out after the latest FOMC meeting, we are now in a new regime, where gold benefits more than stocks on further currency devaluation. Period.
Additionally, as to Mr. Tepper argument that mortgages can still go much lower, we ask: how much did the marginal drop in MBS from 6% to 5% to 4% do to spur mortgages? We hope Appaloosa keeps track of new mortgage applications... which for those who do not are at a 13 year low. How exactly will lack of refinancing stimulate the economy?
Then again, betting on the Fed's desire to make millionaires into billionaires is nothing new for Mr. Tepper who prudently made the call that the Fed would destroy the middle class in 2009 and literally bet the farm on Fed intervention. He is now merely doing what he did then (and the Fed obliged, allowing Tepper to not only not shut down Appaloosa, but make a billion or so in the process). And, after all, what else can he do? Fundamental analysis is now dead, and those who still play by the rules are returning investor capital. The only play left in town is to frontrun the Fed, as Bill Gross has been so proficient in doing, and which is the only trade left. Alas, the only loser from that is 99.9% of America's population. For the sake of Mr. Tepper, we hope the great unwashed don't realize the fleecing they are being covertly subject to, before such time as Tim Geithner and Ben Bernanke are able to secure one way tickets to non-extradition countries.
But yes, once we notice that Bill Gross is going "balls to the wall" on margin and buying MBS again, we will let our readers know - at that point it will be time to frontrun the Fed, aka the involuntary US taxpayer piggybank, again... and again...
Full Tepper interview for those who wish to learn how to talk their books up with the best of them.
In 2007, the Financial Times reported that Appaloosa Management had "attracted interest for its large ownership position in Delphi, the bankrupt car parts supplier, and its clashes on whether management has the shareholders best interests in mind or those of GM and the UAW."[2]
In 2007, Appaloosa Management was ranked in the 100 Hedge funds to watch, the Financial Times ranking.[3]
Known as one of the country's most successful hedge-fund managers, David Tepper initially became interested in the stock market as a young boy watching his father trade stocks in his hometown of Pittsburgh. Today, as president and founder of Appaloosa Management, Tepper has earned an international reputation for being one of the highest earning fund managers on Wall Street.
Tepper, age 46, was raised in the East End of Pittsburgh in the city section known as Stanton Heights. He graduated from Peabody Senior High School in 1975 and attended the University of Pittsburgh, earning a bachelor's of arts with honors in Economics in 1978.
Upon graduation, Tepper became a credit and securities analyst at Equibank in Pittsburgh. In 1980, he enrolled in graduate school at Carnegie Mellon University's business school. 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.
Appaloosa Management is a $3 billion hedge fund investment firm based in Chatham, N.J., just west of New York City. Founded with Jack Walton, a former senior portfolio manager for Goldman Sachs Asset Management, the firm is a general partner of Appaloosa Investment Limited Partnership I and invests in debt and equity securities on behalf of individuals, foundations, universities and other organizations. Appaloosa Management also advises Palomino Fund, Ltd.
Tepper and his wife Marlene are the parents of three children. His personal interests include coaching his children's baseball, softball and soccer teams. Tepper currently serves as a member of the Business Board of Advisors for the Tepper School of Business at Carnegie Mellon and serves on various boards and committees for charitable and community organizations in New York and New Jersey.
Earlier today David Tepper confirmed that virtually everyone is now hypnotized by the biggest fallacy in the history of capital markets: that stocks determine the economy, and not vice versa. Incidentally, this is precisely what the Fed banks on, as confirmed previously by Alan Greenspan, who said on TV that the Fed is far more interested in keeping the stock market artificially high than actually caring about its mandate of keeping unemployment and inflation low. Of course, Tepper couldn't resist but talk his book, and providing the most childish and discredited validation for his bullishness: the Fed will do QE in perpetuity. "Either the economy is going to get better by itself in the next three months...What assets are going to do well? Stocks are going to do well, bonds won't do so well, gold won't do as well. Or the economy is not going to pick up in the next three months and the Fed is going to come in with QE. Then what's going to do well? Everything, in the near term though not bonds...So let's see what I got—I got two different situations: One, the economy gets better by itself, stocks are better, bonds are worse, gold is probably worse. The other situation is the fed comes in with money." We are too lazy to do it, because we have done it about one hundred times in the past, but we suggest Mr. Tepper pull up a chart of the Nikkei and superimpose on it all the times Japan launched ever more impotent episodes of QE and FX intervention. How did that work out? Yes, you can devalue currencies infinitely via QE, but that only destroys the real value of assets. And as we pointed out after the latest FOMC meeting, we are now in a new regime, where gold benefits more than stocks on further currency devaluation. Period.
Additionally, as to Mr. Tepper argument that mortgages can still go much lower, we ask: how much did the marginal drop in MBS from 6% to 5% to 4% do to spur mortgages? We hope Appaloosa keeps track of new mortgage applications... which for those who do not are at a 13 year low. How exactly will lack of refinancing stimulate the economy?
Then again, betting on the Fed's desire to make millionaires into billionaires is nothing new for Mr. Tepper who prudently made the call that the Fed would destroy the middle class in 2009 and literally bet the farm on Fed intervention. He is now merely doing what he did then (and the Fed obliged, allowing Tepper to not only not shut down Appaloosa, but make a billion or so in the process). And, after all, what else can he do? Fundamental analysis is now dead, and those who still play by the rules are returning investor capital. The only play left in town is to frontrun the Fed, as Bill Gross has been so proficient in doing, and which is the only trade left. Alas, the only loser from that is 99.9% of America's population. For the sake of Mr. Tepper, we hope the great unwashed don't realize the fleecing they are being covertly subject to, before such time as Tim Geithner and Ben Bernanke are able to secure one way tickets to non-extradition countries.
But yes, once we notice that Bill Gross is going "balls to the wall" on margin and buying MBS again, we will let our readers know - at that point it will be time to frontrun the Fed, aka the involuntary US taxpayer piggybank, again... and again...
Full Tepper interview for those who wish to learn how to talk their books up with the best of them.