Tepper: This Is No Bubble

Nov 22 2013 | 10:12am ET

This year's stock-market rally has powered Appaloosa Management to stratospheric returns, and firm founder David Tepper doesn't see anything wrong with that.

Tepper said that Appaloosa's gross returns for 2013 are "well into the 40s" in an interview yesterday with Bloomberg Television. And despite stocks shattering record after record, Tepper said he doesn't think that equities are overvalued.

"I know there's talk about bubbles," Tepper said. "This is not one." Stocks remain historically inexpensive in spite of the Standard & Poor's 500 Index's 26% jump this year, he insisted.

The Appaloosa chief did say that the markets might retrench by 5% or 10% when the Federal Reserve finally begins to cut back on its monthly bond-buying program—and that he's shorting U.S. Treasury bonds as a hedge.

As for his own success in 2013, Tepper credited Appaloosa's "big play in the market," airlines. He also said that he is bullish on Japan and is still investing in U.S. and European banks.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Moore Capital PM Fired After Raucous Hamptons Party

Jul 7 2016 | 10:47pm ET

A portfolio manager for Louis Bacon’s $15 billion hedge fund Moore Capital Management...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...