is David Tepper the best hedge fund manager alive today?

Now here's a name I rarely hear people on here mention.

40% gross returns over 15+ years, 30%+ net. A $1 invested back in the beginning is worth $140+ today.

Not sure of any other fund managers that come remotely close to that sort of net return over that long period of time (except Eddie Lampert, but his performance has tanked since taking over Sears in 2005+ I believe)

I also assume it's probably insanely hard to land a job at Appaloosa haha. He's a boss.

 

While Tepper is one of my all time favorites and certainly one of the best around there are so many managers out there that purposely stay under the radar who are absolute beasts.

Jeff Gates Glenn Greenberg Jeff Ubben John Shapiro Larry Robbins The list could go on and on...

[quote=patternfinder]Of course, I would just buy in scales. [/quote] See my WSO Blog | my AMA
 
Simple As...:

While Tepper is one of my all time favorites and certainly one of the best around there are so many managers out there that purposely stay under the radar who are absolute beasts.

Jeff Gates
Glenn Greenberg
Jeff Ubben
John Shapiro
Larry Robbins
The list could go on and on...

Interesting point.

I'm familiar with many of those portfolios.....I don't think a single one of them has returned 30% net returns over long periods of time. Correct me if I'm wrong?

 
idkmybffjill:
Simple As...:

What I'm saying is that it is foolish to evaluate a manager simply on returns only.

So what would you prefer to evaluate them on instead? Volatility?

of CNBC appearances/year. The only way to evaluate

In all seriousness, among the active bigger funds with more than 10 years of history, no one's touching Tepper's 30% net.

Array
 
Best Response
GreenwichForLife:
idkmybffjill:
Simple As...:

What I'm saying is that it is foolish to evaluate a manager simply on returns only.

So what would you prefer to evaluate them on instead? Volatility?

# of CNBC appearances/year. The only way to evaluate

In all seriousness, among the active bigger funds with more than 10 years of history, no one's touching Tepper's 30% net.

That's what I figured. I believe that ESL did 30% net for its first 18 years or so? David Geffen, one of the earliest partners, has mentioned this several times in interviews if you search online. But the market overall did decent those years too. I think if you look at strictly outperformance to the S&P, Tepper kills just about everyone even more.

 
Ehrmantraut:

I know his methods are weird/controversial and he runs a borderline cult, but it's pretty hard not to mention Ray Dalio here. He manages the most money and still crushes it from a returns perspective year in and year out.

Except, you know, this year.

There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
 

Tepper is impressive in that he has done a lot of different things well over the years, and is not afraid to make big marco calls as well.

Klarman is an incredible and consistent value guy, but he's not doing relative value bond arb to go along with it.

 

God.no offense but you guys are a bunch of idiots.

1) why the hell are you looking at net return, you should only focus on gross, fee structure doesn't make one a better or worse manager lol 2) comparing track records is very hard because its hugely a function of what capital base and what time it's from. Track records from the 70s/80s are not reall comparable to today.

 
leveredarb:

God.no offense but you guys are a bunch of idiots.

1) why the hell are you looking at net return, you should only focus on gross, fee structure doesn't make one a better or worse manager lol
2) comparing track records is very hard because its hugely a function of what capital base and what time it's from. Track records from the 70s/80s are not reall comparable to today.

  1. Fine, even with gross return, Tepper kills it. Net return, at least for me, is more useful because that's what the actual clients made. If someone tells you to "show them the money," you look at the net return.

  2. Why are track records from the 70s/80s not comparable to today? Other than the fact that the field has only gotten MORE competitive a time goes on, which makes Tepper's success even more phenomenal.

LLcoolJ:

Tepper was DOWN nearly 30% in 2008, down more than 20% in 2002, and down nearly 50% in 1998.

He comes back very strong after each down year (hence why he is still in business) but can a guy who blows up every crisis be the BEST?

Name me some top funds that were down less than 30% in 2008. I'd wager out of the top 20 return-generating funds, most were down more than that. Third Point was down close to 50%!!

 
idkmybffjill:
leveredarb:

God.no offense but you guys are a bunch of idiots.

1) why the hell are you looking at net return, you should only focus on gross, fee structure doesn't make one a better or worse manager lol
2) comparing track records is very hard because its hugely a function of what capital base and what time it's from. Track records from the 70s/80s are not reall comparable to today.

1. Fine, even with gross return, Tepper kills it. Net return, at least for me, is more useful because that's what the actual clients made. If someone tells you to "show them the money," you look at the net return.

2. Why are track records from the 70s/80s not comparable to today? Other than the fact that the field has only gotten MORE competitive a time goes on, which makes Tepper's success even more phenomenal.

LLcoolJ:

Tepper was DOWN nearly 30% in 2008, down more than 20% in 2002, and down nearly 50% in 1998.

He comes back very strong after each down year (hence why he is still in business) but can a guy who blows up every crisis be the BEST?

Name me some top funds that were down less than 30% in 2008. I'd wager out of the top 20 return-generating funds, most were down more than that. Third Point was down close to 50%!!

Pure Alpha returned 14% gross in 2008. Paulson Advantage was up 24% . Paulson Advantage Plus was up 37%.

 
idkmybffjill:
leveredarb:

God.no offense but you guys are a bunch of idiots.

1) why the hell are you looking at net return, you should only focus on gross, fee structure doesn't make one a better or worse manager lol
2) comparing track records is very hard because its hugely a function of what capital base and what time it's from. Track records from the 70s/80s are not reall comparable to today.

1. Fine, even with gross return, Tepper kills it. Net return, at least for me, is more useful because that's what the actual clients made. If someone tells you to "show them the money," you look at the net return.

2. Why are track records from the 70s/80s not comparable to today? Other than the fact that the field has only gotten MORE competitive a time goes on, which makes Tepper's success even more phenomenal.

LLcoolJ:

Tepper was DOWN nearly 30% in 2008, down more than 20% in 2002, and down nearly 50% in 1998.

He comes back very strong after each down year (hence why he is still in business) but can a guy who blows up every crisis be the BEST?

Name me some top funds that were down less than 30% in 2008. I'd wager out of the top 20 return-generating funds, most were down more than that. Third Point was down close to 50%!!

umm, virtually every discretionary macro and trend following fund was up in 2008

top of my head, the average return of CTAs/managed futures that year was close to 20%, ackman's main fund was only down about 10%, chanos was up about 15%

regardless, if you've had a 20% down year you're not the "greatest" period, regardless of other funds... hedge funds are in the absolute return business

 

Exercitationem facere vitae in aperiam et. Nobis rerum vel est. Eaque esse accusamus libero et in. Voluptatibus iusto labore libero et non omnis. Aliquid sit amet qui et.

Et est ea est consectetur deserunt reprehenderit aut. Provident id corporis reprehenderit ab tempore modi ratione ducimus. Consequatur occaecati quidem quia aut omnis et. Voluptatem iste similique tempora cum dolorum necessitatibus porro. Dolore et quidem et sapiente enim.

Career Advancement Opportunities

April 2024 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • Citadel Investment Group 96.8%
  • Magnetar Capital 95.8%
  • AQR Capital Management 94.7%

Overall Employee Satisfaction

April 2024 Hedge Fund

  • Magnetar Capital 98.9%
  • D.E. Shaw 97.8%
  • Blackstone Group 96.8%
  • Two Sigma Investments 95.7%
  • Citadel Investment Group 94.6%

Professional Growth Opportunities

April 2024 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 97.9%
  • D.E. Shaw 96.9%
  • Magnetar Capital 95.8%
  • Citadel Investment Group 94.8%

Total Avg Compensation

April 2024 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (23) $474
  • Director/MD (12) $423
  • NA (6) $322
  • 3rd+ Year Associate (24) $287
  • Manager (4) $282
  • Engineer/Quant (71) $274
  • 2nd Year Associate (30) $251
  • 1st Year Associate (73) $190
  • Analysts (225) $179
  • Intern/Summer Associate (22) $131
  • Junior Trader (5) $102
  • Intern/Summer Analyst (250) $85
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
GameTheory's picture
GameTheory
98.9
6
dosk17's picture
dosk17
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
Kenny_Powers_CFA's picture
Kenny_Powers_CFA
98.8
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”