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David Tepper is planning on converting hedge fund into a family office

David Tepper, Appaloosa Management
Peter Foley/Bloomberg | Getty Images

Hedge fund manager David Tepper is planning on returning Appaloosa Management's capital to investors and converting it to a family office.

No timetable has been set on returning the money however, a spokesperson for Tepper confirmed to 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 25% 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. Bloomberg also reported the news.

Sources told the Journal that the fund's employees have been instructed that Tepper's investment business is transitioning, with some interviewing with other investment firms.

The Pittsburgh native made a name for himself during the financial crisis through investments in depressed bank securities and other bold calls over the last 26 years. Appaloosa managed about $14 billion in assets, according to recent estimates, with Tepper's own money making up about 70% of the fund. His investment calls often move markets.

WATCH: Appaloosa's David Tepper submits new proposal to shareholders last February

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Appaloosa's David Tepper submits new proposal to shareholders