Mr David Tepper, Head of Appaloosa Management is set to collect a cool US$2.5 billion pay package for the year after staking huge bets that global banks would recover in 2009. That's about over a third of the US$7 billion profits generated by the firm in 2009.
The hedge fund said it made returns of over 120 per cent for the year to the beginning of December. He bought Bank of America when the shares were trading below US$3 a piece and Citigroup at US$1.
At the end of last year Appaloosa had a track record of generating an average of 30 per cent returns a year since it's inception in 1993. It's assets under management have tripled in just three years to US$12 billion. Pretty impressive.
Mr Tepper has built a reputation on judging value in panic situation.
My respect to him, he's got guts!
"Without courage, wisdom bears no fruit" - Baltasar Gracian
1 comment:
This confirms what I guess we already knew... There's a huge amount of money being made by a few people in the markets.. Or put it another way, the majority of money is being made by the minority. How do I get into that minority?!
Tim
www.eminifuturesblog.com
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