Hedge fund manager David Tepper will continue to manage money for 15 investors and return the rest of Appaloosa Management's outside capital as he begins to convert it into a family office, Bloomberg reported Saturday.
His firm will begin to return money to clients at the start of next year, people familiar with the matter told Bloomberg, and remaining investors will have $1.25 billion to $1.5 billion with Tepper.
The shift of returning Appaloosa Management's capital to investors and converting it to a family office reflects a new era for the hedge fund leader, who founded the firm in 1993.
Exiting investors should receive 90% of their money back in January, and the rest in March or April next year, according to the Bloomberg report.
Tepper became known during the financial crisis through investments in depressed bank securities. He managed roughly $14 billion in assets, with his own money comprising about 70% of the fund.