David Tepper's Appaloosa fund has said in a recent letter to investors that it plans to return an extra $700 million in assets to them by year-end, bringing the total amount of givebacks to $2 billion over the last two years. At the end of last year, Tepper returned about half of Appaloosa's $4 billion in assets, noting that $2 billion was the optimal size for the fund. Industry officials estimate the fund will be close to $1.5 billion by year-end.
In his letter, Tepper noted that the market in general has had very poor risk/reward characteristics. He went