David Tepper Made Billions Betting on Banks That Invetsors Exited After 2008; Here's His Net Worth

What is David Tepper's net worth?

American hedgefund founder who is also the owner of sports teams in the NFL as well as NSL, David Tepper was one of the richest people in New Jersey before moving to Palm Beach becoming the wealthiest in Florida, with a $16 billion net worth. He is the founder of the hedge fund Appaloosa Management, and owns the Carolina Panthers NFL team along with the Charlotte FC soccer team. Before starting his own fund, Tepper used to head the junk bond desk at Goldman Sachs, but left after he was denied partnership. Known for investing in troubled firms, Tepper famously invested in Citigroup and Bank of America, when panic after the 2008 financial crash drove investors away from them. As a philanthropist, Tepper has donated more than $67 million to his alma later Carnegie Mellon University, for establishing campus buildings.

What are David Tepper's sources of income?

Tepper is one of the most successful investors in the United States and his hedge fund  Appaloosa Management has made billions of dollars by betting on troubled businesses. Appaloosa made a profit of $7 billion by stocking up on mortgage-backed securities of AIG, as well as other banks in the wake of the 2008 crisis when panicked investors were trying to get rid of them. Tepper cashed in on his move when the tide turned as the American government stepped in to save the financial institutions from a collapse.

Tepper began his career while he was still in college. He worked as a credit analyst in the treasury department of Equibank but soon left that position to study at Carnegie Mellon. After this, he bagged a job in the treasury department of Republic Steel in Ohio, and was later recruited by Keystone Mutual Funds in Boston, Massachusetts.

Tepper left Keystone to join Goldman Sachs as a credit analyst, and served for more than 8 years, looking after bankruptcies and special situations. He also reportedly played a critical role in the survival of the company during the 1987 stock market crash.

He then founded Appaloosa Management, and the company was already in a great position in the 2000s. He made a profit of close to $4 million in 2009, and the company was named the top-earning hedge fund manager of the year. In the year 2019, David announced his plan to turn Appaloosa into a family office which meant that he would return outside money to investors. Around  $14 billion in assets is under the company's management and roughly 70% is Tepper's own money.

Sports team ownership

Tepper is also involved in professional sports. He is the part owner of the NFL's Pittsburg Steeler after purchasing a 5% stake in the team. In 2018, Tepper purchased the  NFL's Carolina Panthers, with a bid of $2.2 billion that was the highest in NFL history.

Philanthropic activity

Tepper has made huge donations to his Alma mater and donated $55 million to Carnegie Mellon's business school. He has also donated around  $67 million which helped establish the Tepper Quadrangle on the campus, and made huge donations to the University of Pittsburgh. He has also donated  $1 million to United Jewish Communities of MetroWest New Jersey and co-founded the political action group Better Education for Kids.

Personal life

David Tepper was born in Pittsburgh, Pennsylvania, on the 11th of September 1957. He was born in a Jewish household to his mother Roberta who was a school teacher and his father Harry who was an accountant. 

He was married to Marlene with whom he has three children, Brian, Randi, and Casey. The two separated in 2016 after which Tepper married  Nicole Bronish.

FAQs

Who is David Tepper's Wife?

He was previously married to Marlene Resnick from 1986 to 2016. He is currently married to Nicole Tepper.

How did David Tepper make his money?

David Tepper is a self-made billionaire who made his money by founding and managing Appaloosa Management, a global hedge fund.