Saturday, 1 August 2015
Last updated 1 day ago
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.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…