is an Americanhedge fundfounded in 1993 byDavid Tepperand Jack Walton specializing in distressed debt.Appaloosa Management invests inpublic equityandfixed incomemarkets around the world.
In 1993,David Tepperand Jack Walton founded Appaloosa Management, an employee-owned hedge fund, inChatham, New Jersey.56Throughout the 1990s, the firm was known as a junk bond investment boutique,7and through the 2000s it was known as a hedge fund.8
In the fourth quarter of 2002, Appaloosa Management returns were heavily a result of junk-bond and distressed debt bets inConsecoandMarconi Corp.that the market was bottoming out.9
Assets under managementin 2007 were $5.3 billion.6TheFinancial Timesreports the company has attracted interest for its large ownership position inDelphi, the bankrupt car parts supplier, and its clashes on whether management has the shareholders best interests in mind or those ofGMand theUAW.5
Appaloosa survived the financial crisis of 2008 with relatively fewinvestorredemption orders.10
From 2009 to 2010, Appaloosa Managements assets under management grew from $5 billion to $12 billion.11
In November 2010,the New York Timesreported total assets under management of $14 billion.3In 2010, it was reported that since 1993 Appaloosa Management had returned $12.4 billion to clientsranking it sixth on a ranking of total returns to clients by managers since inception.12
In September 2011, a Delaware bankruptcy court found that Appaloosa Management is one of four hedge funds that had played a role inWashington Mutualsrestructuring which might have receivedconfidential informationthat could have been used to trade improperly in the banks debt.13In 2011, the company was awarded the Institutional Hedge Fund Firm of the Year award.14
In January 2016, Appaloosas headquarters were relocated toMiami BeachFlorida.2
Appaloosa Managements investments focus on undiversified concentrated investment positions.10Appaloosa invests in the globalpublic equityandfixed incomemarkets with a focus on equities and debt of distressed companies, bonds, exchange warrants,optionsfutures, notes, andjunk bonds.1According toBusinessWeek, the firms client base consists ofhigh-net-worth individuals, pension andprofit sharing plans, corporations, foreign governments, foundations, universities, and other organizations.15Investors commit to a locked period of three years during which their withdrawals are limited to 25 percent of their total investment.10
Appaloosa Management manages four investment vehicles: the offshorePalomino Fund LTD, an offshore and onshore version of itsThoroughbredfund, and its flagship fundAppaloosa Investment.315A complete list of current holdings can be foundhere.
The Palomino Fund from its inception in 1995 to 1998 had a 25 percent return. After Russia defaulted, the fund lost 49 percent of its value between February to September 1998.4The fund returned 26.7% percent in 2008 and 117.3 percent in 2009. The company was ranked by Bloomberg Markets as the top performing fund of any hedge fund manager managing over one billion dollars.10
In 2001, the fund was up 67 percent followed the next year losing 25 percent. In 2003 the fund saw 149 percent returns for investors.9
The company leaders include: David Tepper, Founder and President,1Michael L. Palmer, Chief Financial Officer,1and Jeffrey L. Kaplan, Chief Operating Officer.1
Appaloosa Management L.P.: Private Company Information – BusinessWeek
Frank, Robert (April 6, 2016).Billionaire to save hundreds of millions from Florida move. CNBC
Raghavan, Anita (November 9, 2010).For Tepper, Washington Is an Investment Guide.
Burton, Katherine (April 8, 2008).Simons, Mandel Post Biggest Drop in Hedge Fund Slump.
Middleton, Timothy (January 5, Junk Bond Funds, Risk Often Paid Off.
Stephen Taub (April 13, 2010).David Teppers Appaloosa Management Among First Quarter Hedge Fund LeadersInstitutional Investor.
Taub, Stephen (July 2004). The Bucks Stop Here Alpha.
Allen, Katrina Dean (March 1, 2010).Absolute Return Billion Dollar Club.
. Archived fromthe originalon 27 December 2010
Soros, Paulson Post Biggest Returns Since Inception.
Duhigg, Charles; Lattman, Peter (14 September 2011).Judge Says Hedge Funds May Have Used Inside Information.
Gravrand, B. (23 June 2011).Institutional Investors 9th Annual Hedge Fund Industry Awards Winners.
Richard, Teitelbaum (January 4, 2010).Tepper Turns Panic to Profits With $6.5 Billion Hedge Fund Gain.
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This page was last edited on 31 January 2019, at 17:13