Hedge fund manager David Tepper was never a big Jon Corzine fan. When he worked at Goldman Sachs Group Inc (NYSE:GS) he was passed over for partnership by Corzine on two separate occasions. Bad blood also occurred on multiple levels, accentuated in Tepper’s purchase of Corzine’s signature escape in the Hamptons that Tepper promptly had demolished. In a New York Magazine article Tepper snipped with a smile: “You could say there was a little justice in the world.”
(Tepper and his current lair, from the New York Post)
Bad blood between Tepper and Corzine
After Corzine put a lid on Tepper’s partnership aspirations back in the day when the partnership controlled the company, two things would soon change. Corzine would engineer the sale of Goldman stock, personally profiting from years of work of previous generations without compensating them while talking the company public. Then in 1992 Tepper would establish Appaloosa Management, a highly successful hedge fund that would ultimately net Tepper.
As we noted in a ValueWalk article that smile on David Tepper’s face could be from running $20 billion as manager of Appalossa Management, among the most successful hedge funds in the modern era. In 2009 Tepper personally made $4 billion, following that up by returning close to 30% in 2010. Tepper is one of the most highly paid hedge fund managers in history.
While the most highly paid, he is also headed for one of the most costly divorces in hedge fund history, as well.
(Corzine’s former house, from New York Post)
Tepper bought Corzine’s old lair in the Hamptons for $43.5 million
But what could really be driving the smile on Tepper’s face is Tepper finds himself single for a summer in the Hamptons, with views of the ocean sunset from every room, as was his requirement upon dismantling Corzine’s old lair. According to a report in the New York Post, Tepper paid $43.5 million for the ocean front home that was then owned by Joanne Corzine, the ex wife of the infamous Jon Corzine. The two got divorced after Corzine was dismissed from service at Goldman Sachs and before he went on his rampage of terror as New Jersey Governor’s, the US Senator representing New Jersey and finally as president of MF Global, a role that was significantly more destructive than any bridge closure on a bridge to Manhattan.
Tepper purchased the $43.5 million toy from Jon Corzine and proceeded to destroy it right in front of his eyes, building an expansive and welcoming atmosphere for what could be a parade of new “friends” this summer.