David Tepper’s Appaloosa Management, a hedge fund that specialises distressed debt, purchased an 8.64% stake in MF Global Holdings, Jacob Wolinsky at ValueWalk reports.What’s interesting is Tepper increased his stake in MF Global two days after the beleaguered broker dealer filed for bankruptcy protection, according to the SEC filing.
Tepper prefers credit over equity. What the 13-F did not disclose was Tepper’s large purchase ( the source guessed that it was $20-$70million) of MF Global Bonds at 35 cents on the dollar.
Tepper’s 13F filing Monday showed the hedge fund titan dramatically pared back his stock portfolio.
He completely axed his positions in Bank of America, Wells Fargo, Alpha Natural Resources, Brunswick Corp, DR Horton, Fifth Third, Frontier Oil Corp, Medtronic, Merck, MetLife, Pfizer, Walter Energy and Yahoo.