David Tepper founded Appaloosa Management in early 1993 after leaving Goldman Sachs and owns the Carolina Panthers and Charlotte FC. Appaloosa has averaged roughly 25% annual returns since its founding. Tepper's hallmark strategy targets distressed, debt-laden companies and he earned about $7 billion in 2009 by buying distressed financial stocks. Tepper is reducing exposure to many AI-related and popular stocks in a contrarian repositioning. His largest Q3 2025 sale was UnitedHealth, where he cut about 92% of the position, roughly $780 million. He may be trimming losses from peak purchases or taking profits if he bought the dip. Intel has also seen repositioning amid leadership changes.
"After being passed over for a partner at Goldman Sachs twice, Tepper quit in December 1992 and created Appaloosa Management in early 1993. This hedge fund has been raking it in. It has returned roughly 25% a year since its founding. One of his hallmark strategies is to buy up distressed stocks, especially those of companies with debt-laden balance sheets."
"He's now selling many AI holdings and popular stocks, a very contrarian move. Let's take a look. Stock #1: UnitedHealth (UNH) Tepper's largest sale for Q3 2025 was UNH. He shaved off 92% of his position, or about $780 million worth of the stock. UNH turned into a fan-favorite for hedge funds after it halved in value. After all, how can you pass on America's largest insurance business at a 50% discount?"
Read at 24/7 Wall St.
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