A recent Bloomberg article reports that billionaire David Tepper intends to return money to outside investors, “following other marquee names who quit the struggling hedge fund industry to manage their own capital.”
According to the article, the founder of Appaloosa Management–“one of the most revered hedge fund managers”– hasn’t made a final decision on timing. It explains that the move comes after Tepper’s purchase last year of the football team the Carolina Panthers, sparking concern in some of his clients that the demands of team ownership might distract him from his hedge fund.
The article notes, “hedge funds, once considered the go-to place for wealthy investors, have struggled to produce the returns they had in their heyday. For years, clients have been running for the exits as managers have posted mediocre returns.”
Although the article notes that the Panthers struggled under Tepper’s first season of ownership, it says that the legendary investor plans to spend more time running the franchise.