Billionaire investor David Tepper is known for his high-risk, aggressive trading style. As the founder of the Appaloosa Management hedge fund, Tepper has made a fortune with his contrarian calls and bets on the debts of distressed assets.
During the '08 financial crash that drove down the value of banks to record lows, Tepper was heavily investing in these assets in distress. As an opportunistic fund manager, he bought almost $2 billion worth of commercial mortgage-backed securities at face value from AIG. Soon after, he profited by $7 billion on the trade after the US government stepped in to save the banks.
