David Tepper

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David Alan Tepper
David Tepper 01.jpg
Born(1957-09-11) September 11, 1957 (age 55)
Pittsburgh, Pennsylvania
NationalityAmerican
EthnicityJewish
Alma materUniversity of Pittsburgh (A.B.)
Carnegie Mellon University (M.B.A.)
OccupationHedge Fund Manager
Known forFounder and President of Appaloosa Management
Net worthIncrease US$ 7 billion (March 2013)[1]
Spouse(s)Marlene Tepper (m. 1986)
ChildrenBrian Tepper
Randi Tepper
Casey Tepper
 
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David Alan Tepper
David Tepper 01.jpg
Born(1957-09-11) September 11, 1957 (age 55)
Pittsburgh, Pennsylvania
NationalityAmerican
EthnicityJewish
Alma materUniversity of Pittsburgh (A.B.)
Carnegie Mellon University (M.B.A.)
OccupationHedge Fund Manager
Known forFounder and President of Appaloosa Management
Net worthIncrease US$ 7 billion (March 2013)[1]
Spouse(s)Marlene Tepper (m. 1986)
ChildrenBrian Tepper
Randi Tepper
Casey Tepper

David Alan Tepper (born on September 11, 1957) is an American 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 BA in Economics from the University of Pittsburgh in 1978 and his MBA (then known as an MSIA) from Carnegie Mellon in 1982. For the 2012 tax year, Institutional Investor’s Alpha ranked Tepper No. 1 for earning a $2.2 billion payday.[2]

High school and college[edit]

Tepper was raised in a Jewish family in the East End of Pittsburgh, Pennsylvania in the Stanton Heights neighborhood.[3] He was the second of three children born to Harry, who worked as an accountant, and Roberta, who was an elementary school teacher who taught at public schools in the city. He attended Peabody High School in Pittsburgh's East Liberty neighborhood.[3] He attended the University of Pittsburgh and helped pay 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 its version of an MBA at the time, a Master of Science in Industrial Administration (MSIA).

Career[edit]

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.[4] 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.” [5]

In 2009, Tepper's hedge-fund earned about $7 billion by buying distressed financial stocks in February and March (including Bank of America common stock at $3 per share), and then profiting from the recovery of those stocks later that year.[6] $4 billion of those profits went to Tepper's personal wealth. In March 2010, the New York Times reported that Tepper's success made him the top-earning hedge fund manager of 2009.[7] Then again in 2013, Forbes ranked him as top hedge-fund earner of 2012, elevating his status to the 166th wealthiest person in the world.[1]

Personal life[edit]

Tepper and his wife Marlene are the parents of three children.[8] His personal interests include coaching his children’s baseball, softball and soccer teams.[8] Tepper is a resident of Livingston, New Jersey.[9] 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.[10] On September 25, 2009, Tepper purchased a portion of the Pittsburgh Steelers.[11]

Philanthropy[edit]

On March 19, 2003, Tepper announced that he would make a single donation of $55,000,000 to Carnegie Mellon University's business school (then called the Graduate School of Industrial Administration—GSIA).[12] 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.[13]

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.[14] David A. Tepper and wife Marlene have pledged $3.4 million to Rutgers University - Mason Gross School of the Arts, the alma mater of his wife.[15]

In 2006, Tepper donated $1 million to United Jewish Communities of MetroWest New Jersey toward their Israel Emergency Campaign.[16]

In March 2012, Tepper and his former colleague, Alan Fournier founded a political action group, Better Education For Kids. "Better Education for Kids is entering the fray as private organizations are poised to play a larger role in education in New Jersey. Christie wants more charter schools, and he’s pushing legislation that would allow private companies to take over struggling public schools. According to the NJ Star Ledger on June 24, 2011, "Last week, the fledgling group launched a $1 million campaign to advertise its mission and solicit donations. Unlike traditional non-profits, Better Education for Kids is a type of non-profit not required to disclose its donors. Though the group cannot formally coordinate its work with lawmakers, it will be advised by two of the state’s top political consultants: Mike DuHaime, a Republican strategist with close ties to Christie, and Jamie Fox, a Democrat who served as former Gov. James E. McGreevey’s chief of staff."[17]

After Hurricane Sandy, David Tepper donated $200,000 in gift cards to Jersey City and Hoboken families who suffered loss in the storm.[18][19][20]

Politics[edit]

David Tepper contributed $10,400 to the 2013 Jersey City Mayoral Candidate, Steve Fulop. According to the Jersey Journal on October 24, 2012, "David Tepper, the billionaire who supports tenure reform and charter schools, contributed $10,400 to Fulop's council candidates, while Tepper's wife gave the team an additional $10,400."[21] In fact, Steve Fulop's former campaign manager Shelley Skinner[22] is now the Deputy Director of Tepper's Better Education for Kids[23]

References[edit]

  1. ^ a b Forbes The World's Billionaires: David Tepper March 2013
  2. ^ Hedge Fund Titans’ Pay Stretching to 10 Figures April 15, 2013 New York Times
  3. ^ a b Carnegie Mellon Tepper School of Business: "Meet the Man Behind the Gift" November 17, 2004
  4. ^ Fridson, Martin (March 2, 2006). "Too Many Dollars?". “Distressed Debt Investor” Article. Fridson Vision LLC. Retrieved 2006-08-17. 
  5. ^ "Turning Heads on Wall Street" (PDF). (Reprint of Article. The Wall Street Journal). Carnegie Mellon University. April 14, 2004. Archived from the original on 2006-06-28. Retrieved 2006-08-17. 
  6. ^ Zuckerman, Gregory (December 21, 2009), "Fund Boss Made $7 Billion in the Panic", Wall Street Journal 
  7. ^ Schwartz, Nelson D.; Story, Louise (March 31, 2010). "Pay of Hedge Fund Managers Roared Back Last Year". The New York Times. 
  8. ^ a b Foley, Stephen (22 December 2009). "$2.5bn pay packet for fund manager". The Independent. Retrieved 22 December 2009. 
  9. ^ "Seven-figure donation fuels emergency campaign", United Jewish Communities of MetroWest. Accessed February 24, 2011. "Chief among them is the gift of David Tepper of Livingston, who donated $1 million from the David A. Tepper Charitable Foundation. Tepper, a hedge-fund manager, made the pledge last month at a parlor meeting in the Short Hills home of Steven and Lori Klinghoffer."
  10. ^ "About David Tepper". David Tepper School of Business at Carnegie Mellon. Retrieved 22 December 2009. 
  11. ^ Bouchette, Ed (September 24, 2009), "Steelers close deal to add new owners", Pittsburgh Post-Gazette 
  12. ^ Bradshaw, Della (May 17, 2004). "Dean profiles Working for $1 a year". Business Schools Ranking (Financial Times). Retrieved 2006-08-17. 
  13. ^ "But can you teach it?". Special Report - Business schools (The Economist). May 20, 2004. Retrieved 2006-08-17. 
  14. ^ "Pitt to Induct Six Donors Into Cathedral Of Learning Society". Pitt Chronicle (Pittsburgh, PA: University of Pittsburgh). 2008-06-23. Retrieved 2009-12-22. 
  15. ^ Rutgers College alumna Marlene A. Tepper and her husband, David A. Tepper, of Livingston, N.J., have pledged $3.4 million to the Mason Gross School of the Arts.
  16. ^ New Jersey Jewish News: "Seven-figure donation fuels emergency campaign: September 7, 2006
  17. ^ http://www.nj.com/news/index.ssf/2011/06/nj_hedge_fund_leaders_create_g.html
  18. ^ http://www.nj.com/hudson/voices/index.ssf/2013/01/tepper_gift_card_effort_was_la.html
  19. ^ http://www.nj.com/hobokennow/index.ssf/2013/01/david_tepper_gets_two_thumbs_u.html
  20. ^ http://www.nj.com/jjournal-news/index.ssf/2012/12/2_jerzey_city_councilwomen_bla.html
  21. ^ Jersey Journal October 24, 2012 Mayoral candidate Fulop is far ahead of Mayor Healy in fundraising http://www.nj.com/jjournal-news/index.ssf/2012/10/ersey_city_mayoral_candidate_f.html
  22. ^ Politicker NJ February 4, 2009 "Fulop To Run As Independent" http://www.politickernj.com/matt-friedman/27117/fulop-run-independent
  23. ^ Better Education 4 NJ Kids' website http://b4njkids.org/go.cfm?do=Page.View&pid=21

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