Page 256

Upon graduating from the University of Pittsburgh, he became a securities analyst at Equi Bank in Pittsburgh. Then he attended graduate school at Carnegie Mellon Business School. After graduation, he worked at Republic Steel in Ohio and then Keystone Mutual Funds in Boston. Then he went to Goldman Sachs in New York in 1985 when the high-yield group was initially formed.

Tepper had been at Goldman Sachs for about eight years as head trader on the high-yield desk. His primary focus was bankruptcies and special situations. He left in 1993 to start Appaloosa with Jack Walton, who was formerly senior portfolio manager for Goldman Sachs Asset Management. Walton was in the office the day of the interview, but is no longer active in the firm.

Why are the funds named after horses? When they started the company they originally wanted the name Pegasus but the name had already been taken. Since Pegasus was a horse, they looked into other horse possibilities. Appaloosa was the first name in the horse book. Also being the first letter in the alphabet, it had the additional plus of getting information first if faxed or called.

Tepper says he is motivated by the game. When he's not trading, he enjoys golfing and swimming. He also coaches baseball, softball, and soccer teams of his three children.