2016’s Top Earning Hedge Fund Managers And Their Favorite Stocks

4. David Tepper, Appaloosa Management

2016 Earnings: $750 million

Top Pick at the End of 2016: Allergan plc Ordinary Shares (NYSE:AGN)

David Tepper scored $750 million in earnings last year, ranking fourth on the list of top earning hedge fund managers. Appaloosa Management had a solid but unspectacular 2016, underperforming the market with returns in the mid-single digits. Like some other peers who have attained tremendous long-term success, it appears that Tepper may be gearing his fund up for an eventual switch to a family office, having returned money to shareholders for several years now. Tepper now manages just $16.5 billion in assets, the majority of which are owned by himself and his employees.

Appaloosa’s top equity pick at the end of 2016 was Allergan plc Ordinary Shares (NYSE:AGN), which it had more than twice as much money ($895 million) invested in than any other stock after a 250% hike to its position in the fourth quarter. Allergan plc Ordinary Shares (NYSE:AGN) has gained 14% this year despite investor pessimism ruling the healthcare space at the moment, due to President Trump’s repeated comments on drug pricing, in which he has said that prices will come “way, way, way down” and that it would happen “fast”. Of course, he also said Obamacare would be dismantled and we know how that turned out…