David Tepper Lets Investors Out Of The Gate Early Because "We're Being Nice"

David Tepper

What a guy.

On-a-roll hedge funder David Tepper is letting investors who committed cash to his $3 billion Thoroughbred Fund, leave early if they so desire, according to DealBook.

The fund launched in July of 2008 and investors had to commit for three years.

So why is the Appaloosa chief letting them go now?

“We were being nice,” he says.

If we were rolling around in 22% returns, we might also be that obliging.

On the other hand, considering Tepper’s way with wherewithal, why would investors want out?

Well, because Tepper is just too good.

Last year some large institutions… told Mr. Tepper that Thoroughbred’s performance had been so strong that their allocations were now out of whack, and they needed to rebalance their holdings.

“We have become so big for people’s baskets,” Mr. Tepper said. “If your investor base has a problem — in this case it was a good problem — we try to accommodate them. Your investors are your customers after all.”

Last year Tepper told investor in his Appaloosa and Palomino funds that Thoroughbred was open to new investments because others were getting out, and the exiting cash was apparently replaced within weeks.

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