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David Tepper reportedly scaling back hedge fund business to concentrate on Panthers ownership

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David Tepper made himself a multi-billionaire in hedge fund management, but it appears he is more fulfilled in his new role as owner of the Carolina Panthers, so he wants to concentrate on that.

NFL: Baltimore Ravens at Carolina Panthers Bob Donnan-USA TODAY Sports

Being able to purchase an NFL team is one of the ultimate signs of financial success in America, and now that Carolina Panthers owner David Tepper has realized that dream, he appears prepared to leave his old life as a hedge fund manager behind. According to reports, Tepper plans to return the capital base of his company Appaloosa management to it’s investors, and convert to a smaller family office.

Appaloosa reportedly manages about $14 billion in assets, according to recent estimates, and there is currently no timetable scheduled for the return of this capital to the firm’s investors.

The public reason for this move is to focus his attention on NFL ownership; from CNBC:

The shift would represent a new era for the hedge fund leader, who founded Appaloosa in 1993 and grew it into a powerhouse, returning 30% a year.

Sources told The Wall Street Journal that Tepper was looking to concentrate on managing the Carolina Panthers NFL franchise, which he purchased last year for a record $2.2 billion.

Privately, this may just be a convenient excuse to get out of the hedge fund game, which has become increasingly volatile in recent years. Whatever the reason, Tepper has more money than he could ever possibly need, so who could blame him and other hedge fund guys for wanting to get out of the game after being in it for 30-40 years?

As to what this means for the team, having a very involved owner can be a dual edged sword. So far, we have seen many great things for the team’s charitable works in the community, and the enaction of more forward thinking policies regarding inclusion and the mental health of team employees. Involvement in football decisions can be where historically this could become a bad thing... but you have to look at this on a case by case basis. At this point, there isn't much evidence to say either way, so let’s just see where this ride takes us.