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David Alan Tepper (born on September 11, 1957) is an American value investor, successful hedge fund manager and the founder of Appaloosa Management. His investment specialty is distressed companies. In recent years he's become known as a philanthropist, his largest gift going to Carnegie Mellon University, whose Tepper School of Business is named after him. He earned his MBA (then known as an MSIA) from Carnegie Mellon in 1982.

David Tepper

David Tepper was raised in the East End of Pittsburgh in the city section known as Stanton Heights and attended Peabody High School in the East Liberty neighborhood of Pittsburgh, Pennsylvania. At the University of Pittsburgh he paid his way through school by working at the Frick Fine Arts library. He graduated with honors receiving his Bachelor of Arts degree in Economics. He also dabbled in the markets during college.

After graduation he entered the finance industry working for Equibank as a Credit Analyst in the Treasury department. In 1980, unsatisfied with this position he enrolled at Carnegie Mellon University's business school to pursue their version of an MBA, a Master of Science in Industrial Administration (MSIA).

Career

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.

In 2001 he generated a 61% return by focusing on distressed bonds, and in the fourth quarter of 2005 he pursued what he saw as better opportunities in Standard & Poor's 500 stocks.^[1] He makes significant gains year after year by “investing in the diciest of companies,” such as MCI and Mirant. Investments in Conseco and Marconi also led to huge profits for the company’s hedge funds while Tepper “keeps the market on edge.” ^[2]

In April 2007, Tepper was ranked ninth in Alpha Magazine's ranking of top hedge fund earners in 2006, with earnings of $670 million.^[3] In 2003, Tepper was considered to be “the hottest investor on wall street”^[4] and was one of the top 10 money earners in Institutional Investor’s Alpha’s Ranking of the world’s 25 Highest-Paid Hedge Fund Managers in 2004. He also ranked second on the same list in 2003. With an estimated current net worth of around $1.2 billion, he is ranked by Forbes as the 601st richest person in the world.

In 2009, Tepper's hedge-fund firm earned about $7 billion by buying beaten-down bank shares in February and March and profiting from the following rise in the market.^[5]

Personal life

David Tepper and his wife Marlene are the parents of three children.^[6] His personal interests include coaching his children’s baseball, softball and soccer teams.^[6] Tepper is a resident of Livingston, New Jersey.^[7] 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.^[8] On September 25, 2009, Tepper purchased a portion of the Pittsburgh Steelers.^[9]

Philanthropy

On March 19, 2003, David Tepper announced that he would make a single donation of $55MM to Carnegie Mellon University's business school (then called the Graduate School of Industrial Administration—GSIA). ^[10] This donation was made after he had been encouraged by Kenneth Dunn, his former professor (who became dean of the school). Tepper accepted the suggestion but made the contribution a “naming gift” and suggested that the school's name be changed to the David A. Tepper School of Business.^[11]

Tepper also has made several large gifts to the University of Pittsburgh, including several endowed undergraduate scholarships and support of academic centers and university-run community outreach programs.^[12]

See also

• List of personalities associated with Wall Street

Notes

References

• Reuters staff (March 16, 2006). "Dissident Delphi investor challenges board". The Boston Globe (Reuters). http://www.boston.com/business/articles/2006/03/16/dissident_delphi_investor_challenges_board/. Retrieved 2006-08-17.  
• Forbes staff (November 2005). "#645 David Tepper". The Worlds Billionares (Forbes magazine). http://www.forbes.com/lists/2006/10/MM4Q.html. Retrieved 2006-08-17.  
• Editorial staff (March 29, 2004). "How To Rebuild A B-School". Management (Businessweek). http://www.businessweek.com/magazine/content/04_13/b3876107_mz056.htm. Retrieved 2006-08-17.  
• staff (2006). "America's Most-Generous Donors". List the 2004 Pledges. The Chronicle of Philanthropy. http://philanthropy.com/stats/donors/2006/detail.php?ID_Gift=1384. Retrieved 2006-08-17.  
• Tepper magazine staff (Fall 2004). "A kid from Peabody High School" (PDF). Feature (Carnegie Mellon University): pp. 6. http://wpweb2.tepper.cmu.edu/magazine/pdfs/fall04.pdf. Retrieved 2006-08-17.  
• Guinto, Joseph (September 1, 2004). "To MBA or Not to MBA, That is the Question". Business Feature (American Way magazine). http://www.americanwaymag.com/aw/business/feature.asp?archive_date=9/1/2004. Retrieved 2006-08-17.  
• Web staff (August 17, 2006). "David Tepper Bio". Tepper School of Business. http://business.tepper.cmu.edu/tepper/press_david.aspx. Retrieved 2006-08-17.  
• CM Today magazine staff (June 2006). "Wall Street Wizard David Tepper “learns it, earns it and returns it”". Top Stories (Carnegie Mellon University). http://www.carnegiemellontoday.com/article.asp?Aid=70. Retrieved 2006-08-17.  

External links

• David Tepper Portfolio and stock Picks