David Tepper, the Hedge fund manager and founder of Appaloosa Management, is loading up on stocks this year as he claims that stock market will soon increase.
Tepper made a shocking $4 billion dollars in 2009 and is now the 258th richest person in the whole world. Even Carnegie Mellon’s business school was named after him. His specialty is investing in distressed companies.
September 24, during his CNBC interview, Tepper proclaimed that stocks are perched to go up no matter what happens in the economy. This is because of the second round of QE or quantitative easing.
According to him, whether or not the economy does well in the coming years, stocks will remain up that will subsequently increase bonds and gold.
Tepper’s firm acquired distressed financial stocks, including the Bank of America common stock at $3 per share. He purchased bank stocks when they were at their lowest in the early 2009. During this time, many investors were afraid to invest on banks as they might be nationalized.
However, Tepper believed buying bank financial stocks is easy. Now, these stocks have brought his hedge-fund firm $7 billion in earnings.
Tepper had been investing in companies involved in technology, paper products, as well as health care. His biggest investment now involves a health care company such as WellPoint. Others include Hewlett-Packard and Applied Materials with several million shares.
Business owners and stock investors are yet to see if David Tepper’s forecast will come true in the fierce trade and business industry.
