Hedge Fund Manager David Tepper Lays Out Family Office Plan
Appaloosa Management will start returning capital in January 2020.
David Tepper, the billionaire hedge fund manager, will soon return capital to Appaloosa Management investors as he shifts to a family office.
However, Tepper will continue to manage money for 15 lucky investors.
Appaloosa Management will start returning investor capital in 2020, according to a report from Bloomberg. The 15 investors will keep about $1.25 billion to $1.5 billion with the firm. The rest of the money will comprise capital owned by Tepper.
The news confirms previous reports that Tepper was thinking about exiting the fund industry. In May, Bloomberg reported that Tepper had these considerations. Five months later, the plan will return 90% of investors’ capital, starting in January. The bulk of the money remaining will be returned by the spring.
Tepper has a net worth of $11.4 billion. His money comprises 70% of Appaloosa’s AUM of $14 billion. He founded the firm in 1993.
What Next for David Tepper?
In 2016, Tepper made headlines when he helped start the chorus line of money managers who departed high-tax states for lower-tax locales.
Tepper relocated from New Jersey to Florida. Tepper’s tax bill was so critical to the State of New Jersey that countless media outlets covered his departure with fervor.
He has domiciled in Florida. Many people now expect that he will pour more time and energy into the Carolina Panthers. He purchased the NFL team for $2.275 billion in May 2018.
Furthermore, that figure was the highest in NFL history.
[Related: Hedge Funds Bet Big on Caesars Takeover]
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