David Tepper’s Nephew Up 20% In April After Correctly Predicting an Iran Escalation; 27% CAGR ITD [Exclusive]

The first quarter of 2026 was the worst for the U.S. equity market since 2022, with the S&P 500 off 4.4%. However, David Tepper’s nephew Aaron Weitman bested the index, posting a positive return of 4.5% net for Class A-2 and 4.7% net for Class B-2 for his CastleKnight Management, which currently has about $3.6 billion in assets under management.

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The nitty gritty of CastleKnight’s performance

On the heels of that strong quarter came CastleKnight’s best month of performance since its inception in 2020. The fund returned 20.5% net for Class A-2 and 21.2% net for Class B-2 in April, bringing its year-to-date performance to 26% net for Class A-2 and 26.8% net for Class B-2, according to a letter to investors seen by Hedge Fund Alpha.

CastleKnight has returned 27.4% net annualized for Class A-2 and 28.5% net annualized for Class B-2 since its launch in October 2020. Meanwhile, the S&P 500 has returned 16.3% annualized over the same time frame, while the Russell 2000 is up 13.2% annualized. The Bloomberg U.S. High Yield Index returned 5.4% annualized, and the HFRI Event Driven Multi-Strategy Index is up 9.3% on an annualized basis since October 2020.

Cumulatively, CastleKnight Management has more than doubled the S&P 500’s total return, coming in at 287.2% and 306.3% for Classes A-2 and B-2, respectively since launch. The S&P is up 132.3% CastleKnight has maintained an average 47% exposure to credit investments since launch.