US hedge fund manager in line for £1.5bn profit share - papers

DAVID TEPPER, who runs the US hedge fund Appaloosa Management, is in line for a profit share of around $2.5bn (£1.5bn) this year after betting heavily on a recovery in the stocks of banks including Citigroup and Bank of America, says The Times.

Appaloosa has made about $7bn profit so far this year, according to the Wall Street Journal, with Mr Tepper set to gain about $2.5bn of this, one of the biggest personal annual pay rewards of recent years. Mr Tepper, whose fund specialises in the bonds and shares of troubled companies, bought battered bank shares in February and March after the US Treasury announced its plan to prop up banks by buying preference shares. Most investors were running for the exits, fretting that the Government would eventually have to nationalise banks such as Citigroup. Full story...