Earning $10million (£6m) is more than most of us will achieve in a lifetime, but it’s all in a day’s work for David Tepper.
The hedge fund manager earned an eye-watering $3.5billion (£2.07bn) in 2013, topping the list of the highest earning US hedge fund managers compiled by Institutional Investor’s Alpha magazine.
As a result, Tepper earned more money than Simon Cowell, Kim Kardashian and David Beckham combined – yet nowhere near the same level of notoriety. And that’s after his $2.2bn (£1.3 bn) paycheque in 2012.
So how did he become one of the richest men in the world?
A former Goldman Sachs employee, Tepper left the bank to found Appaloosa Management in the 1990s, the firm garnered success by targeting companies that were in financial trouble.
But more recently Tepper has made a fortune by piling into stocks when they have fallen out of favour with his peers. His funds Apaloosa I and Palomino jumped by around 42% in value last year thanks to a risky, but successful, stake in airline stocks, according to Institutional Investor’s Alpha. Tepper was also credited with shrewd moves on auto and asset-backed stocks.
All that money certainly allows Tepper to splash out. In 2011 he bought a £26m mansion in the Hamptons, outside New York, only to tear it down and rebuild another twice the size. The beachside estate now features a gigantic swimming pool, tennis court and two hot tubs.
But he also gives a sizeable amount to charity and community projects, donating $67m (£40m) to the Carnegie Mellon University – where he got his MBA, and which now has a Tepper School of Business named after the hedge fund manager.
Tepper is joined in the upper echelons of mega earning hedge fund managers by Steven Cohen from SAC Capital Advisors, John Paulson of Paulson & Co., James Simons of Renaissance Technologies and Kenneth Griffin of Citadel.
Though 2013 was not one of the better years to be a hedge fund manager, according to Alpha, the top 25 hedge fund managers still managed to take home a collective $21bn (£12bn). Nice work if you can get it.
Source : Yahoo