A Contrarian Bet Worth $9.5 Billion
I’m in good company with my projection here.
During last February and March, a hedge fund called Appaloosa Management was busy buying up shares of Bank of America (NYSE: BAC) and Citigroup (NYSE: C).
And the guy calling the shots was a man named David Tepper, who runs the fund.
At the time, investors, colleagues and even his friends thought he was nuts – a move akin to lounging on the deck of the Titanic while everyone else was abandons ship.
But in yet another example of how it’s often wise to take a contrarian investment stance, the bet not only paid off handsomely for Tepper’s firm, but for Tepper personally. Appaloosa is up nearly $7 billion on the trade, while Tepper stands to pocket a very cool $2.5 billion in profit for himself.
Tepper’s no one-hit wonder either…
His track record includes huge payouts for his investors in Korean stocks, Russian debt, junk bonds and commodities over the last decade.
We should all be so astute…
Perhaps we can be, because there’s still time to get in on his next big idea
Wednesday, December 30, 2009
New York City 2010
