Funds Hub

Money managers under the microscope

Who dares wins

December 21, 2009

Everyone is interested in reading about someone making billions of dollars in profit, and the Wall Street Journal’s story about the Appaloosa fund making $7 bln of profit so far this year is certainly eye-catching.

REUTERS/Shannon Stapleton

Rather like London’s Crispin Odey, who earned a handy 30 mln stg this year, the fund, run by David Tepper, made its money buying bargain basement bank shares.

Whilst in Odey’s case it was Barclays, for Tepper it was Bank of America below $3 (now $15.35) and Citigroup preferred shares below $1.

For the skilful/lucky few, 2009 presented a once-in-a-lifetime opportunity to buy assets at ridiculously low prices. For many others, it was a frustrating year of sitting on the sidelines in cash and waiting for the macroeconomic situation to get a little clearer.

Of course, now it’s a bit clearer, the opportunity appears to have disappeared.

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