Hedge Fund Manager Tepper Thinks BofA Shares Could Go To $27

Hedge fund manager David Tepper said Wednesday he has a $27 price target on Bank of America Corp. (BAC) shares, even while acknowledging that many investors still fear financial stocks.

Speaking at the 15th annual Ira Sohn Conference in New York, Tepper also said he's bullish on a $4 billion issue of American International Group Inc. (AIG) junior subordinated debt with an 8.175% coupon.

Tepper, who has made money the past year investing in the stocks of banks including his top holding BofA, also said he likes shares of Spanish bank Santander (SBP), which he thinks could double.

The unusual conference, at which 12 hedge fund managers present their favorite investment ideas in concise 15-minute presentations, was founded 15 years ago in honor of Ira Sohn, a Wall Street analyst who died of cancer at the age of 29.

During the speech, Tepper at one point ripped off his tie in a nod to tieless Sam Zell. Zell had spoken earlier, although he missed his original time slot. The real-estate magnate talked for only a few minutes before playing a bizarre animated music video dedicated to Charles Darwin, with lines like, "Charlie Charlie Darwin, I think I need a beer."

Tepper himself sang a song, to the tune of Elvis Presley's Heartbreak Hotel, with the words, "We're in an awful mess."

Still scheduled to speak, among others, are Pershing Square Capital Management's Bill Ackman and Greenlight Capital's David Einhorn.

-By Joseph Checkler; Dow Jones Newswires; 212-416-2152;[e-mail]