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Hedge Fund Managers Shift Billions Over Carried Interest Concern

  • Tax advisers say law is unclear on treatment of realized gains
  • Appaloosa’s Tepper among those who raced to protect fortune
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Hedge Fund Managers Shift Billions Over Carried Interest Concerns

Late last year, some hedge fund managers raced to protect their personal fortunes from being carved up by the Republican tax law.

David Tepper, who runs Appaloosa Management and may soon own the Carolina Panthers, and Ross Margolies, founder of Stelliam Investment Management, were among the managers who took action, according to regulatory filings and people familiar with their moves. They collectively shifted billions of dollars before Jan. 1, when a provision took effect requiring a longer holding period to qualify for the tax break on carried interest profits.