Fed Moves Push Appaloosa Up 5% In Oct.

Nov 11 2010 | 2:07am ET

In September, Appaloosa Management’s David Tepper said running a hedge fund was “easy,” if you knew what the government was going to do. Last month, he tried to prove it.

Appaloosa’s eponymous and Palomino hedge funds were up more than 5% in October, almost three times the industry average based on major hedge fund indices. The $8.7 billion funds are up almost 21% year-to-date, after soaring 132% last year.

And like last year, when Tepper said “the government told you what they were going to do,” Appaloosa’s October was Tepper’s statement that the September Federal Reserve Open Market Committee state was a “put” on the stock market: If the economy failed to improve, “the Fed is going to come in” with quantitative easing.

Indeed, after last week’s Fed announcement that it would buy $600 million in Treasury bonds, Appaloosa “became more constructive on equities,” it told investors.

New Jersey-based Appaloosa’s $5.7 billion Thoroughbred Fund didn’t do quite as well in October as its other funds, but it still added more than 3% and is up more than 18% on the year.


In Depth

Dillon Eustace: The Advantages of ICAVs

Feb 11 2016 | 7:51pm ET

As the growth of alternative investment vehicles continues, global asset managers...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedging Against Reputational Risk in the 21st Century

Feb 12 2016 | 7:18pm ET

For investors, the first step in researching a new fund or manager is to google...