David Tepper’s Appaloosa Partners disclosed on November 14th that the firm took 8.64% passive stake in MF Global Holdings Ltd. (MF). The SEC filing shows Appaloosa Partners passed the 5% stake threshold on November 2nd, two days after MF Global filed for the Chapter 11 protection. This might be a distressed investment made by Appaloosa Partners, which has built a brand-new 14.25 million shares position in MF by now. On October 25th MF Global reported $191.6 million quarterly loss after the company lost $6 billion in European sovereign debt. Later Moody’s downgraded the company’s long-term bond to junk, and the company filed for bankruptcy on October 31th.
MF was in twelve hedge funds in the second quarter. Eric Bannasch’s Cadian Capital took 10.18 million shares as MF’s largest hedge fund stakeholder. Beside Fine Capital’s second place, other hedge funds had smaller positions in the stock. Chuck Royce’s Royce & Associates had 765 thousand shares, and Ken Griffin’s Citadel Investment Group had 196 thousand shares.
David Tepper took home paychecks in the billions in both 2009 and 2010. He manages $16 Billion and returned around 30% last year. David Tepper currently ranks as the 258th richest person in the world. Carnegie Mellon named their business school after him. (See the detail)
MF Global Holdings Ltd. is a holding company. The company is a commodities and listed derivatives broker in the market. The Company provides access to more than 70 exchanges worldwide. MF Global also provides research and market commentary, as well as providing clearing and settlement services. MF Global Holdings Ltd. was founded in 1981 and is based in New York City, New York.