David Tepper sends scathing letter to Whirlpool's board. Here's why he's so upset.

By Claudia Assis

'Enough is enough,' the billionaire hedge-fund founder tells Whirlpool

Whirlpool shares have lost a third of their value in the past 12 months.

Billionaire David Tepper, founder of hedge fund Appaloosa Management, on Wednesday minced no words in calling on Whirlpool's board to shake things up, saying company executives have squandered hundreds of millions of dollars in shareholder value.

Appaloosa, which owns a 7% stake in Whirlpool (WHR), is the appliance maker's third largest institutional holder after BlackRock and Vanguard, according to FactSet.

Tepper's beef centers around Whirlpool's recent decision to issue equity. Tepper called it a "unnecessary dilution" for shareholders and a move that reflected "a striking lack of judgment on the part of the board and senior management team."

Tepper accused the company of not taking advantage of the Trump administration's tariffs through deals or mergers with international companies out of fear that its own executives could be displaced.

"It is abundantly clear to us - and should be to all shareholders - that entrenching themselves is management's main objective. Job preservation, while diluting outstanding equity interest in the company, should not be the goal," the letter said.

"Over the years this management team has destroyed hundreds of millions of dollars of shareholder value. Enough is enough," the letter said.

Whirlpool did not immediately return a request for comment. The company's stock has dropped for nine sessions, its longest losing streak since a 10-day stretch that ended Oct. 5, 2018. The shares have lost a third of their value in the past 12 months, contrasting with gains of more than 16% for the S&P 500 SPX.

Wall Street is mostly cautious about Whirlpool on concerns about ongoing promotions and lower profit margins. Of 11 analysts surveyed by FactSet, half have a hold rating on the company's stock, 30% rate it a sell and 20% rate it a buy.

Analysts at Stifel are among those with a hold rating on the stock, citing worries about the "difficult" market for major domestic appliances in the U.S. and "unintended consequences" of tariffs, which weigh on sentiment as Whirlpool tries to take advantage of its domestic footprint.

Whirlpool owns iconic U.S. kitchen and laundry brands such as Maytag and KitchenAid.

-Claudia Assis

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02-25-26 1122ET