industry investment management founded 1993 1 headquarters short hills new jersey 1 u.s. area served worldwide key people david tepper founder and president michael l. palmer chief financial officer jeffrey l. kaplan chief operating officer 1 aum 14 billion 2 website http amlp.com appaloosa management is an american hedge fund founded in 1993 by david tepper and jack walton specializing in distressed debt . 3 4 appaloosa management invests in public equity and fixed income markets around the world . 1 contents 1 history 1.1 2002 conseco & marconi corp. 1.2 2007 delphi 1.3 2008 financial crisis through 2011 2 investment strategy 3 products and performance 3.1 palomino fund 3.2 appaloosa investment i 4 administration 5 references history edit in 1993 david tepper and jack walton founded appaloosa management an employee owned hedge fund in chatham new jersey . 4 5 throughout the 1990s the firm was known as a junk bond investment boutique 6 and through the 2000s it was known as a hedge fund . 7 2002 conseco & marconi corp. edit in the fourth quarter of 2002 appaloosa management returns were heavily a result of junk bond and distressed debt bets in conseco and marconi corp. that the market was bottoming out . 8 2007 delphi edit assets under management in 2007 were 5.3 billion . 5 the financial times reports the company has attracted interest for its large ownership position in delphi the bankrupt car parts supplier and its clashes on whether management has the shareholders best interests in mind or those of gm and the uaw . 4 2008 financial crisis through 2011 edit appaloosa survived the financial crisis of 2008 with relatively few investor redemption orders . 9 from 2009 to 2010 appaloosa management s assets under management grew from 5 billion to 12 billion . 10 in november 2010 the new york times reported total assets under management of 14 billion . 2 in 2010 it was reported that since 1993 appaloosa management had returned 12.4 billion to clients ranking it sixth on a ranking of total returns to clients by managers since inception . 11 in september 2011 a delaware bankruptcy court found that appaloosa management is one of four hedge funds that had played a role in washington mutual s restructuring which might have received confidential information that could have been used to trade improperly in the bank s debt . 12 in 2011 the company was awarded the institutional hedge fund firm of the year award . 13 investment strategy edit appaloosa management s investments focus on undiversified concentrated investment positions . 9 appaloosa invests in the global public equity and fixed income markets with a focus on equities and debt of distressed companies bonds exchange warrants options futures notes and junk bonds . 1 according to businessweek the firm s client base consists of high net worth individuals pension and profit sharing plans corporations foreign governments foundations universities and other organizations . 1 4 investors commit to a locked period of three years during which their withdrawals are limited to 25 percent of their total investment . 9 products and performance edit appaloosa management manages four investment vehicles the offshore palomino fund ltd an offshore and onshore version of its thoroughbred fund and its flagship fund appaloosa investment . 2 14 palomino fund edit the palomino fund from its inception in 1995 to 1998 had a 25 percent return . after russia defaulted the fund lost 49 percent of its value between february to september 1998 . 3 the fund returned 26.7 % percent in 2008 and 117.3 percent in 2009 . the company was ranked by bloomberg markets as the top performing fund of any hedge fund manager managing over one billion dollars . 9 appaloosa investment i edit in 2001 the fund was up 67 percent followed the next year losing 25 percent . in 2003 the fund saw 149 percent returns for investors . 8 administration edit the company leaders include david tepper founder and president 1 michael l. palmer chief financial officer 1 and jeffrey l. kaplan chief operating officer . 1 references edit a b c d e f g h i j appaloosa management l.p. private company information businessweek . retrieved 2013 04 17 . a b c raghavan anita november 9 2010 . for tepper washington is an investment guide . new york times . retrieved 25 july 2011 . a b burton katherine april 8 2008 . simons mandel post biggest drop in hedge fund slump . bloomberg . retrieved 26 july 2011 . a b c d 100 hedge funds to watch pdf . www.ft.com . retrieved 2010 04 22 . a b the rankings the hedge fund elite . . new york magazine . apr 9 2007 . retrieved 25 july 2011 . middleton timothy january 5 1997 . in junk bond funds risk often paid off . new york times . retrieved 14 august 2011 . stephen taub april 13 2010 . david tepper s appaloosa management among first quarter hedge fund leaders . institutional investor . a b taub stephen july 2004 . the bucks stop here alpha . alpha . a b c d teitelbaum richard . bullish at the brink pdf . february 2010 . bloomberg markets . retrieved 11 july 2011 . allen katrina dean march 1 2010 . absolute return billion dollar club . ar absolute return alpha . retrieved 26 july 2011 . soros paulson post biggest returns since inception . fin alternatives . september 13 2010 . retrieved 14 august 2011 . duhigg charles ; lattman peter 14 september 2011 . judge says hedge funds may have used inside information . the new york times . gravrand b. 23 june 2011 . institutional investor s 9th annual hedge fund industry awards winners . opalesque . retrieved 26 july 2011 . richard teitelbaum january 4 2010 . tepper turns panic to profits with 6.5 billion hedge fund gain . bloomberg . retrieved 27 july 2011 . v t e hedge funds investment strategy arbitrage relative value capital structure arbitrage convertible arbitrage equity market neutral fixed income arbitrage fixed income relative value investing statistical arbitrage volatility arbitrage event driven activist shareholder distressed securities risk arbitrage special situation directional convergence trade commodity trading advisors managed futures account dedicated short global macro long short equity trend following other fund of hedge funds multi manager trading algorithmic trading day trading high frequency trading prime brokerage program trading proprietary trading related terms markets commodities derivatives equity fixed income foreign exchange money markets structured securities misc arbitrage pricing theory assets under management black scholes model greeks finance delta neutral capital asset pricing model alpha beta security characteristic line fundamental analysis hedge securitization short taxation of private equity and hedge funds technical analysis investors vulture funds family offices financial endowments fund of hedge funds high net worth individual institutional investors insurance companies investment banks merchant banks pension funds sovereign wealth funds regulatory fund governance 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