David Tepper
The period of crises provides enormous opportunities for traders. However, if one category of investors at this moment loses a lot of money due to the wrong time for investing.
The second category makes billions of dollars by buying shares and debt obligations of leading enterprises for just pennies.
It is the approach of investing in securities during times of crisis and financial difficulties that is one of the most risky, but billions of dollars are earned precisely in such a market environment.
One of these crisis virtuosos is considered to be David Tepper, who earned more than 10 billion dollars from the crisis, and in this article you will get acquainted with his brief biography and success story.
David Tepper was born in 1957 in Pittsburgh, Pennsylvania. He grew up in the most ordinary average American family, namely his father was an ordinary accountant at a company, and his mother worked as a teacher in primary school.
However, despite his enormous academic potential, David was more interested in sports as a child, and was considered a bully due to his harsh behavior.
After graduating from school, David Tepper prefers to become an economist, so he enters the Faculty of Economics at the University of Pittsburgh.
It is worth noting that the tuition fees were simply enormous, so he had to work part-time in the library, and later at the stock exchange.
It is worth noting that starting from the third year of study, David paid for the training entirely on his own, since at that time he was actively scalping options trading.
Trader career
After graduating from university, David Tepper became a junior analyst at Equibank in 1978.
However, the career at his first job turned out to be far from Tepper’s ideas, and it was at his first job that the understanding arose that it was necessary to continue his studies.
Therefore, after two years of work and gaining practical experience, David quits and goes to study at Carnegie Mellon University business school and receives an MBA degree.
After completing training in 1982, David Tepper got a job at Ohio Republic Steel where he actively became acquainted with the so-called junk bonds.
After working for only a year in the company, he receives a tempting offer from Keystone Mutual Funds, where after two years of work he gained a reputation as the company's leading analyst.
In 1985, David Tepper got a job as a credit analyst at the largest investment bank Goldman Sachs, receiving only a rate of 150 thousand dollars a year.
It is worth noting that at Goldman Sachs, David Tepper was able to fully unleash his talent as a manager; moreover, in a short period of time, he began to head an entire department for trading high-yield bonds.
However, David Tepper constantly overstepped the company's regulatory standards, so there was no talk of further promotion, despite the fact that management turned a blind eye to all misconduct due to high efficiency.
Creating your own company
The lack of further growth at Goldman Sachs influenced the decision to open my own business.
After leaving the firm with his colleague Jack Walt, they create their own fund, Appaloosa, with an authorized capital of $57 million.
At that time, the fund managed by Tepper showed a return of 37 percent per annum, which led to a huge influx of assets.
After a year of work, the company attracted 300 million dollars, and after another year of work, more than 800 million were under management.
David Tepper gained enormous fame and wealth after buying up shares and debt of such companies as Bank of America, Citigroup, whose shares were at their lowest after the mortgage crisis and the collapse of Lehman Bros.
A year later, shares were up more than 300 percent, and the company closed the year with a record return of 120 percent.
Today, David Tepper's fortune is estimated at more than $11.5 billion, and his foundation continues to actively invest, and Tepper himself is actively involved in charity.