Billionaire Carolina Panthers owner David Tepper is backing a new hedge fund helmed by a former Appaloosa partner who's also his nephew
- Aaron Weitman, a long-time partner at Appaloosa Management and founder David Tepper's nephew, is launching his own hedge fund, CastleKnight Management, on July 1.
- The new fund, which Tepper is expected to be an investor in, will launch with $100 million, and invest across equities and credit.
- Weitman's move follows Tepper announcement that he will begin returning client capital to focus on his NFL team, the Carolina Panthers.
- He joins Appaloosa alums Peter Rosenblum and Andrew Casino, who have either launched their own fund or are planning to this year.
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A new hedge fund is coming to midtown Manhattan in July, and it boasts a serious pedigree.
CastleKnight Management will launch with $100 million on the first day of the third quarter, and will invest across equities and credit. The firm is run by Aaron Weitman, a former senior partner at Appaloosa Management and the nephew of Appaloosa founder and Carolina Panthers' owner David Tepper. Tepper is expected to be an investor in the firm, a source familiar tells Business Insider.
Hedge Fund Alert first reported on CastleKnight's expected launch.
Weitman will join fellow Appaloosa alums Peter Rosenblum, who is set to launch his fund 140 Summer Partners this year, and Andrew Casino, who launched Baymount Management last year. It was previously reported Tepper had an interest in investing with them.
Appaloosa, one of the most successful funds in history, is slowly giving external investors their capital back as Tepper focuses on his NFL team. The firm managed about $14 billion, the majority of which was Tepper's money, around the time of his announcement.
Weitman focused on cyclical industries at Appaloosa, where he started as an intern more than 15 years ago before rising the ranks to senior partner. His expertise includes industries like housing, chemicals, and industrials, a source said, while Dustin Shapir, a former analyst at Oak Hill Partners, was brought on as a partner and has expertise in real estate and leisure industries.
The firm will be a blend of distressed investing, value investing, and merger arbitrage, the source said, investing across equities and credit asset classes.
The source said the firm is still hoping to add someone with technology, media, and telecommunications experience to the investing team before the launch. The firm's COO is Chris Sullivan, who previously worked at Diameter Capital and Blackstone's GSO unit.