David Tepper sends 'scathing' letter to Whirlpool, calls for changes

Appaloosa Management founder David Tepper – one of Wall Street’s best-known hedge fund managers, who made billions betting on banks after the 2008 financial crisis – has sent a sharply worded letter to the board of appliance maker Whirlpool, CNBC reports. The billionaire investment manager accuses the company of destroying shareholder value and called for a sweeping strategic review. Appaloosa owns a large stake in Whirlpool and is unhappy with the additional share issuance that sent the stock down 14% on Tuesday.

In a letter to Whirlpool’s board, Tepper said he watched “a certain astonishment” as the company issued additional shares. That, he said, amounted to a large and unnecessary dilution of shareholders. Tepper believes Whirlpool replaced cheap financing with more expensive capital, harming shareholders even though it could have acted more rationally, for example by issuing bonds.

“Over the years this management team has destroyed hundreds of millions of dollars of shareholder value. Enough is enough. There can be no more excuses,” Tepper wrote in the letter, a copy of which was obtained by CNBC.

After the news, Whirlpool shares fell 0.9%. From its July peak, the company has lost nearly 36% of its market capitalization.

Appaloosa Management sharply increased its stake in Whirlpool in the third quarter. It bought more than 5.23 million shares, bringing its holding to 5.50 million. At the end of the quarter, the stake was valued at about $432 million. As of the end of the fourth quarter, the fund had sold 1.6 million shares, but the position remained one of the largest in its portfolio, ranking eighth, HedgeFollow data shows. Whether Appaloosa’s stake changed at the start of 2026 will not be known until mid-May, when the fund releases its Form 13F report.

Whirlpool shares plunged 14% on Tuesday after the company announced the secondary offering, which raised $454.9 million through the sale of common stock and $508.1 million through an offering of depositary shares, according to the company's press release. In addition, Whirlpool sold 435,000 shares of Guangdong Whirlpool Electrical Appliances at a discounted price of $69 per share in a private placement.

Tepper also criticized Whirlpool for failing to capitalize on tariffs imposed under the Trump administration. He said the company should have considered partnerships or potential mergers with disadvantaged foreign competitors to strengthen its strategic position.

"We encourage the Board to remember their fiduciary responsibilities and not accept management acting purely in its own self-interest," Tepper's letter said. "[We] invite domestic entities or foreign corporations who want to create American jobs and increase shareholder value to take an interest in Whirlpool."

Whirlpool did not respond to CNBC's request for comment.

According to MarketWatch data, of the 10 analysts covering the home appliance maker’s stock, five have a neutral rating (“hold”), three recommend selling the shares, and only two have it as a "buy." The Wall Street consensus target price is $85.70 per share, implying upside of 19.5% relative to the stock’s closing level on Tuesday.