Tuesday, 30 September 2014
Last updated 1 hour ago
Jan 5 2011 | 9:46am ET
David Tepper understands that there can be too much of a good thing.
The Appaloosa Management chief has allowed some of his investors to redeem early, prior to the expiration of the Thoroughbred Fund’s three-year lockup. For a fee, of course.
Tepper said that some institutional investors had asked to redeem some of their shares after the fund nearly doubled in value in 2009 and returned another 22% last year, leaving their hedge fund allocation out of whack.
“We have become so big for people’s baskets,” Tepper told The New York Times. “If your investor base has a problem—in this case it was a good problem—we try to accommodate them. Your investors are your customers after all.”
Tepper said Appaloosa was “being nice,” but wasn’t being entirely magnanimous: The firm offered space in the fund to investors in its Appaloosa and Palomina funds, and quickly found money to replace that being redeemed. And redeeming investors will pay a fee for getting their freedom a year earlier, which will be paid to remaining investors.
Throroughbred has about $3 billion in assets under management.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
The trading world is inundated with strategies and techniques. Here’s one way traders can get a handle on information overload.