David Tepper, Appaloosa Management
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Hedge fund manager David Tepper is returning Appaloosa Management’s capital to investors and converting it to a family office, sources told CNBC.
No timetable has been set on returning the money, sources close to Tepper’s office said.
The shift would represent a new era for the hedge fund leader, who founded Appaloosa in 1993 and grew it into a powerhouse, returning 30% a year.
Sources told The Wall Street Journal that Tepper was looking to concentrate on managing the Carolina Panthers NFL franchise, which he purchased last year for a record $2.2 billion.
Sources also told the Journal that the fund’s employees have been instructed that Tepper’s investment business is transitioning, with some interviewing with other investment firms.
The Pittsburgh native made a name for himself during the financial crisis through investments in depressed bank securities and other bold calls over the last 26 years. Appaloosa managed about $14 billion in assets, according to recent estimates. His investment calls often move markets.