3/25/2014

If you did not read my previous post about the world’s greatest investor, David Tepper, please do. In that post I explained how David Tepper has produced the greatest returns in hedge fund history, 41% a year for 21 years which would turn $10000 into $12 Million by simply using 3 rules for investing.

Tepper is a event driven distressed investor meaning he will only buy something that has a catalyst and has crashed in price.

Well right now there is a market that has both crashed and has a catalyst. It is China and Chinese stocks. Its simple David Tepper has stated in both the New York Times and Kiplinger’s that the key to his investing success has been following the moves of The Fed and Global Central Banks, its that simple. Remember Tepper is not your typical hedge fund billionaire-ivy league grad, he is a graduate of the the University of Pittsburgh, so my point is that anyone can do this.

And right now China is giving you the same signal that the US did in 2009-2010 with QE, they are about to launch a massive stimulus package which will boost China’s economy and stock market. Chinese stocks are cheap they have crashed more than 50% and now there is a potential catalyst that will boost this market back to its highs. This is a classic David Tepper play.

Tepper has made billions on plays like this, he purchased Argentinian Bonds, Russian Debt, Telecom Stocks and Banking Stocks all after they had crashed and there was a government mandated catalyst/policy move that told him these markets had bottomed.

Even better with the advent of leveraged etfs you don’t need a fancy prime brokerage account or margin account. You can simply buy the Direxion 3X Bull China ETF, Symbol YINN, (which gives you leveraged exposure to the Chinese Stock Market) and you can put on the exact same trade that top billionaire hedge fund managers use, like David Tepper.

Will Meade
President of The Billionaires Portfolio