David Tepper Appaloosa Management
David Tepper, who is considered the best amongst the present lot of hedge-fund managers , during a financial crisis, is quite optimistic as he believes that the federal reserve will support the financial markets if the economy further deteriorates.
Tepper stated in an interview with CNBC that investments are likely to rise if the government intervenes.
He further explained the Federal Reserve Open market Committee statements and explained that the government will prop up the financial markets and keep them from deteriorating below a specific level.
David Tepper successfully runs Appaloosa Management which is a $12 billion hedge fund firm, which helps to sell the debts of distressed companies which are facing financial problems.
The Palomino Fund, Tepper’s other hedge fund, successfully gained 11% in the first eight months of the year 2010.it has, since then returned more than 25% a year since 1994.
He indicated that a similar situation is going to pop up this year as well, he told CNBC in a recent interview. Where he further explained the Fed’s statement that a second round of quantitative easing is going to take place, in which the central bank is going to buy U.S government bonds in order to keep the interest rates low.
David Tepper further predicted that the economy would hopefully get better in the coming three months, also hinting which assets would do well in the near future. According to Tepper, bonds and gold won’t do well, but stocks would. And he further believes that “if” the economy doesn’t pick up then the Federal Reserve is going to come with the so-called Quantitative easing and everything will do well except bonds.
David Tepper
