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Hedge fund manager to net £1.5bn from battered banks

American hedge fund manager David Pepper is set to bag £1.5bn after investing heavily in the battered banking sector earlier this year.

According to reports, Pepper, who runs US hedge fund Appaloosa Management, invested in the global banking sector durings its low in February and March 2009 when it was thought the sector could be nationalised.

Pepper’s firm is set to make its own £4.4bn profit according to the Wall Street Journal. He purchased the shares as the US treasury announced plans to bolster banks through the purchase of preference shares.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. tepper was a former goldman sachs clan member. in order to make $7 BILLION when the bank share price was so low (and is still so low) would have required a couple of billion dollars ..

    do you think Mr. Tepper was able to use TARP funds to hedge his bets?

    do you think tepper and appaloosa operated on inside information from mr. kashNkarry and mr. paulson… maybe the goldman sachs/TARP team accidentally leaked valuable trading information?

  2. A ‘”socially useless” activity?

  3. 2 simple questions – whose money did he gamble with and what would have been the cost to him if he had lost?

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