has made his hedge fund, Appaloosa Management, about $7 billion for 2009, and pulled in about $2.5 billion for himself by betting on distressed American banks that now seem poised to make a full recovery. David Tepper (From forbes.com)
Back in February and March, Tepper bought all the Bank of America and Citigroup stock he could get his hands on when it was trading below $3 and $1 respectively. Other investors avoided the stock like plague with worries that the banks would be nationalized or that a Great Depression-like era would ruin the American banks. Tepper told the Wall Street Journal
it often felt like he was completely alone, and that on some days, "no one was even bidding."
Those dark horse bets have made Appaloosa Management a lot
of money in a year when many hedge funds shuttered or suffered crippling losses. In case you're wondering how in the world someone could make so much money in just one year, maybe Tepper's good fortune has something to do with an interesting ritual. He keeps a pair of brass testicles on his desk and rubs them during the trading day for good luck.