NEW YORK -(Dow Jones)- Appaloosa Management founder David Tepper reported a 6.1% stake in Goodyear Tire & Rubber Co. (GT), an automotive parts maker grappling with soaring raw material costs.
News of Tepper's stake in Goodyear, reported in an SEC filing late Thursday, prompted Goodyear shares to rise 7.1% to $13.12 in after-hours trading. Appaloosa Management had owned 1.3% of Goodyear as of Sept. 30, according to FactSet Research.
A Goodyear spokesman declined to comment on Tepper and said the company doesn't comment on its stock price.
Tepper specializes in distressed-debt investing and manages around $16 billion. He had a strong year in 2010 after turning optimistic about U.S. stocks before many hedge-fund rivals. Tepper correctly anticipated the Federal Reserve's recent efforts to boost the economy, steps that have helped the market rally.
His stake in Goodyear comes as the company wrestles with increasing raw- material costs. Goodyear swung to a third-quarter loss in late October and blamed raw materials for the results. Natural-rubber prices were the biggest drain as Goodyear spent $412 million more on raw material expenses compared with the same time period last year.
Goodyear is due to report fourth-quarter results on Feb. 10.
Goodyear's stock has traded between $9.10 and $15.27 throughout the past year and is up nearly 30% since December.
-By Steven Russolillo, Dow Jones Newswires; 212-416-2180; steven.russolillo@ dowjones.com
By Steven Russolillo
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Appaloosa Management founder David Tepper reported a 6.1% stake in Goodyear Tire & Rubber Co. (GT), an automotive parts maker grappling with soaring raw material costs.
News of Tepper's stake in Goodyear, reported in a Securities and Exchange Commission filing late Thursday, prompted Goodyear shares to rise 7.1% to $13.12 in after-hours trading. Appaloosa Management had owned 1.3% of Goodyear, as of Sept. 30, according to FactSet Research.
A Goodyear spokesman declined to comment on Tepper, and said the company doesn't comment on its stock price.
Tepper specializes in distressed-debt investing and manages around $16 billion. He had a strong year in 2010 after turning optimistic about U.S. stocks before many hedge-fund rivals. Tepper correctly anticipated the Federal Reserve's recent efforts to boost the economy, which have helped the market rally.
His stake in Goodyear comes as the company deals with increasing raw material costs. Goodyear swung to a third-quarter loss in late October and blamed raw materials for the results. Natural rubber prices were the biggest drain as Goodyear spent $412 million more on raw material expenses compared with the same time period last year.
Goodyear is due to report fourth-quarter results on Feb. 10.
Goodyear's stock has traded between $9.10 and $15.27 over the past 52 weeks and is up nearly 30% since December.
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