Palm Beach, FL

The second richest person in Palm Beach, Florida

Luay Rahil

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"I think when it comes to decisions, I try not to be emotional. To drown out the noise and look at the important facts."

This approach made David Alan Tepper one of the wealthiest people in the world. He founded Appaloosa Management L.P, a hedge fund management firm offering investment management services to rich individuals.

Forbes magazine estimates his wealth to exceed $16.7 billion, making him the second wealthiest man in Palm Beach, Florida.

Who is David Tepper?

David Alan Tepper is a renowned hedge fund manager, the founder of Appaloosa Management L.P., and the owner of the Carolina Panthers.

David Tepper was born on September 11, 1957, the second of three children. Tepper grew up in a lower-middle-class neighborhood in Pittsburgh, Pennsylvania. His father, Harry, was an accountant, and his mother, Roberta, was a schoolteacher.

Tepper never earned an 'A' in high school.

Even though Tepper was a scholar student at Peabody High School, he never earned an A. That's because he wasn't motivated enough to work for those grades. Instead, he preferred to collect baseball cards, memorize statistics, and skip class to get free pancakes from a place across the street from his school.

Tepper also loved to act and was able to win the "Best Actor" award for his performance in the high school musical Bye Bye Birdie.

He became known for his investments in depressed bank securities.

In 1978 Tepper earned a bachelor's degree in economics from the University of Pittsburgh and his MBA from Carnegie Mellon University four years later. During his studies, he developed a system for buying and selling options that helped pay expenses.

After earning his MBA in 1982, Tepper worked at the finance office of Republic Steel, providing him with the knowledge to buy distressed company companies in the future. Then, in 1984, he was recruited to Keystone Mutual to be a credit analyst.

Tepper got his chops at Goldman Sachs in 1985.

Finally, his work ethic and math prowess were rewarded when he was recruited to Goldman Sachs's fledgling junk bond desk in 1985. Unfortunately, despite the desk's profitability, Tepper was passed over for partnership in 1988, 1990, and 1992.

After being passed over partnership, Tepper left Goldman Sachs and launched Appaloosa Management L.P in early 1993.

Tepper and his partner, Jack Walton, brought together a small group of affluent investors and used high-risk methods to realize large capital gains, such as investing in debt. As a result, the partners grew the firm from $300 million in 1994 to $800 in 1996.

David Tepper converted his hedge fund firm into a family office.

In 2019, David Tepper revealed Appaloosa would become a family office. He returned most of the firm capital to its investors. In 2022, Appaloosa managed $3.82 billion worth of assets, down from $14 billion worth of assets a few years earlier.

David Tepper has correlated holding crypto to holding gold. He considers crypto a stored value and owns a small amount of crypto.

He purchased Carolina Panthers in 2018.

David Tepper bought NFL's Carolina Panthers from the original owner and founder Jerry Richardson in May 2018 for an NFL record $2.275 billion.

"On behalf of the fans and myself, I thank Jerry Richardson for bringing the team to the Carolinas and entrusting me with its future. Winning is the most important thing both on the field and in the community, and I am committed to winning a Super Bowl championship together. I look forward to being part of the Panthers' family and supporting this flourishing region."

David Tepper philanthropy

In 2004, Tepper donated $55 million to Carnegie Mellon University, which named its business school after him. Tepper also pledged $3.4 million to fund a chair at Rutgers University.

Have you heard about David Tepper before reading this article?

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