David Tepper—a renowned value investor, hedge fund manager, and founder of Appaloosa Management—disclosed today that he has a 7.35 percent stake in Dean Foods Co (NYSE: DF). Tepper is probably best known for his strategy of investing in bank stocks during 2009 when other investors were running away from them. Because he went against the grain at a time when that was almost unthinkable and his hedge funds made a big returns as a result of his instincts he is now hailed as a Hedge Fund King.
Betting right once on such a large scale tends to create a bit of a reputation though, so when it was revealed that he had a 7.35 percent stake in DF, investors flocked to buy DF the way they probably wish they’d bought bank stocks back in 2009, and shares of DF rose 11.25 percent.
Other dairy producers and food manufacturers did not seem to benefit from this. Lifeway Foods, Inc (NASDAQ: LWAY) fell 3.51 percent today and Smithfield Foods Inc. (SFD) dropped 3.09 percent.
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*Prices and chart courtesy of Yahoo Finance.
