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David Tepper To Turn Appaloosa Into A Family Office, Focus On Family And Panthers

Wayne Duggan

After 26 years, billionaire hedge fund manager David Tepper is shutting down his Appaloosa LP to outside investors.

The Wall Street Journal has reported Tepper plans to return outside clients’ money as the 61-year-old Tepper plans to spend more time on the Carolina Panthers, the NFL team for which he serves as principal owner.

Appaloosa has $13 billion in assets, and people familiar with the matter said executives are still discussing a timeframe and procedure for returning clients’ money. Moving forward, Appaloosa will serve as a family office, devoted strictly to managing Tepper’s personal wealth, which is estimated at around $11.6 billion. Tepper’s personal investments make up about 70 percent of Appaloosa’s assets under management.

Tepper’s Success

Tepper founded Appaloosa back in 1993 after he was unable to gain a partnership at Goldman Sachs Group Inc. (NYSE: GS). Appaloosa has reportedly generated an average annual return of more than 25 percent ever since. Tepper famously made roughly a $7 billion profit for Appaloosa investors in 2009 by buying shares of distressed bank stocks near their financial crisis lows, including Bank of America Corp (NYSE: BAC) at around $3 per share. Today, Bank of America stock trades at around $27.75.

Last year, Tepper made headlines by acquiring the Carolina Panthers for a record .2 billion. Tepper was previously a part owner of the Pittsburgh Steelers.

Top Stock Picks

For investors that want to follow in Tepper’s investing footsteps, here are Appaloosa’s top holdings, according to the fund’s latest 13F filing:

  • Micron Technology, Inc. (NASDAQ: MU)
  • Allergan plc (NYSE: AGN)
  • PG&E Corporation (NYSE: PCG)
  • Facebook, Inc. (NASDAQ: FB)
  • Amazon.com, Inc. (NASDAQ: AMZN)

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