Early Life and Education
David Tepper was born in Pittsburgh, Pennsylvania. He is the second of three children. He grew up in a Jewish family in the Stanton Heights neighborhood of Pittsburgh. Tepper earned a Bachelor's degree in Economics from the University of Pittsburgh in 1978 and an MBA from Carnegie Mellon University in 1982.
Rise to Success
After earning his MBA, Tepper started his career at Equibank and then moved to Republic Steel. In 1985, he was recruited by Goldman Sachs as a credit analyst. He became the head trader within six months, focusing on distressed debt and special situations. After being passed over for a partner position at Goldman Sachs, Tepper left in 1992 and founded Appaloosa Management in early 1993. Appaloosa Management quickly achieved significant returns, with a 57% return in its first six months. Tepper’s success in buying distressed financial stocks during the 2008 financial crisis earned him the title of the top-earning hedge fund manager in 2009.
Key Business Strategies
Tepper's investment strategy has focused on distressed debt and value investing, often taking contrarian positions in the market. He is known for his ability to identify undervalued assets. He generated a 61% return in 2001 by focusing on distressed bonds. Tepper bought the Carolina Panthers in 2018 for a record $2.2 billion.
Philanthropy
Tepper is known for his philanthropic endeavors. He has made significant donations to Carnegie Mellon University, with contributions exceeding $125 million, including a $67 million gift to develop the Tepper Quadrangle on the north campus. He and his wife, Nicole, have made a $3 million commitment to Hurricane Helene relief efforts. The David & Nicole Tepper Charitable Foundation Inc. has total assets of $60.7 million (2024).
