Tepper, billionaire founder of Appaloosa Management is considering investing around $25 million of his personal capital in Weiss’s Short Hills Capital fund.
David Tepper /Getty
David Tepper, founder of the highly profitable Appaloosa Management hedge fund, understandably has more than his share of followers.
Tepper has created a buzz in the investment market by expressing a very serious interest in investing in the “fund of funds” currently in the advanced stages of being established by Stephen L. Weiss, a veteran of the Wall Street investment scene, who intends to have his fund up and running by March the first.
According to market commentators, the fund will now get under way thanks to Tepper’s investment as well as some funding from Weiss as well as a few investors, whose identity remain private for the time being.
Over the years Tepper has been known to invest in a number of single-manager fund launches, although he generally prefers to invest in funds established by former employees of Appaloosa, with his most recent being an undisclosed investment in Alder Hill Capital, founded by Eric Yip, a former senior analyst with his company.
Tepper’s interest in investing in Weiss’s company, according to industry analysts, may stem from the fact that Weiss has long been based in Short Hills, New Jersey, where Appaloosa have their headquarters.
Short Hills is currently staffed by Weiss himself, backed up by two analysts and two operations staffers, with plans in place to take on a chief financial officer for the fund.
Stephen L. Weiss began his professional career as a tax attorney, before moving into the world of financial management, beginning at Oppenheimer & Co., leaving them to joining by Warren Buffett at Salomon Brothers, working in close cooperation with Wall Street’s largest investment funds.
Weiss was appointed co-manager of Salomon Brothers’ 500 person Global Equity Research Department where he is credited with having developed Wall Street’s first truly global research engine, combining the company’s pulled research from Europe, Asia, Latin America as well as the United States.
Weiss left Salomon Brothers to be a joint manager with SAC Capital, later leaving them to join Lehman Brothers where he is recognized as building what was regarded as being the top institutional equity sales force in the financial industry, playing an important role in the Lehman’s research division’s rise to first place in the Institutional Investor survey.
David Tepper graduated with an economics degree from the University of Pittsburgh in 1978 and then an MBA from Carnegie Mellon University in 1982., According to Forbes, David Tepper has a net worth of US$7.9 billion as at September 2013.