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

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...