David Tepper - Appaloosa Management Portfolio

David Tepper - Appaloosa Management Q2 2024 Portfolio

Appaloosa Management, a hedge fund managed by David Tepper, disclosed 37 security holdings in their SEC 13F filing for the second quarter of 2024, with a total portfolio value of $6,175,374,000

As of Q2 2024, David Tepper’s Appaloosa Management portfolio shows a mix of strategic reductions and selective additions across key holdings. The adjustments reflect a cautious approach in high-growth sectors while maintaining positions in key technology and consumer stocks. Here’s a detailed overview of the top holdings:

 

BABA – Alibaba Group Holdings

  • Portfolio Allocation: 12.24%
  • Recent Activity: Reduced holdings by 6.67%.
  • Shares Held: 10,500,000.
  • Reported Price: $72.00 per share.
  • Value at Reported Price: $756,000,000.
  • Current Price: $79.54 per share.
  • Price Change: +10.47%.
  • 52-Week Range: $65.22 – $93.38.

 

Alibaba remains the largest position in the portfolio, even after a reduction in shares. The increase in current price suggests a rebound in sentiment towards Chinese tech stocks, reflecting optimism about Alibaba’s future prospects.

 

AMZN – Amazon.com Inc.

  • Portfolio Allocation: 10.87%
  • Recent Activity: Reduced holdings by 9.22%.
  • Shares Held: 3,475,000.
  • Reported Price: $193.25 per share.
  • Value at Reported Price: $671,544,000.
  • Current Price: $177.59 per share.
  • Price Change: -8.10%.
  • 52-Week Range: $118.35 – $201.20.

 

Amazon’s position was reduced, likely due to the recent dip in share price. The reduction might suggest Tepper is taking profits or rebalancing his exposure to the e-commerce giant amidst market volatility.

MSFT – Microsoft Corp.

  • Portfolio Allocation: 8.55%
  • Recent Activity: Reduced holdings by 15.62%.
  • Shares Held: 1,181,356.
  • Reported Price: $446.95 per share.
  • Value at Reported Price: $528,007,000.
  • Current Price: $421.03 per share.
  • Price Change: -5.80%.
  • 52-Week Range: $307.14 – $467.51.

 

Microsoft saw a significant reduction in shares, possibly indicating profit-taking after a strong run-up in price. Despite the reduction, the position remains substantial, reflecting continued confidence in the company’s long-term growth.

 

META – Meta Platforms Inc.

  • Portfolio Allocation: 7.63%
  • Recent Activity: Reduced holdings by 16.70%.
  • Shares Held: 935,000.
  • Reported Price: $504.22 per share.
  • Value at Reported Price: $471,446,000.
  • Current Price: $537.33 per share.
  • Price Change: +6.57%.
  • 52-Week Range: $273.82 – $542.81.

 

Meta Platforms experienced a significant reduction in shares, yet its current price shows a strong performance, indicating Tepper’s strategic move to capitalize on gains while maintaining exposure to this leading social media and technology company.

 

GOOG – Alphabet Inc. CL C

  • Portfolio Allocation: 5.72%
  • Recent Activity: Reduced holdings by 7.23%.
  • Shares Held: 1,925,000.
  • Reported Price: $183.42 per share.
  • Value at Reported Price: $353,084,000.
  • Current Price: $163.17 per share.
  • Price Change: -11.04%.
  • 52-Week Range: $121.32 – $193.31.

 

Alphabet’s Class C shares saw a reduction in holdings, possibly due to a dip in share price. The reduction reflects a cautious approach to managing exposure to the tech sector, balancing potential risks and rewards.

ORCL – Oracle Corp.

  • Portfolio Allocation: 4.57%
  • Recent Activity: Reduced holdings by 13.04%.
  • Shares Held: 2,000,000.
  • Reported Price: $141.20 per share.
  • Value at Reported Price: $282,400,000.
  • Current Price: $136.93 per share.
  • Price Change: -3.02%.
  • 52-Week Range: $98.28 – $146.59.

 

Oracle’s position was significantly reduced, likely due to a strategic rebalancing in the portfolio. Despite this, the current price is close to the reported price, indicating stable performance within the broader tech sector.

 

PDD – Pinduoduo Inc.

  • Portfolio Allocation: 4.18%
  • Recent Activity: Reduced holdings by 7.62%.
  • Shares Held: 1,940,000.
  • Reported Price: $132.95 per share.
  • Value at Reported Price: $257,923,000.
  • Current Price: $145.08 per share.
  • Price Change: +9.12%.
  • 52-Week Range: $75.44 – $164.69.

 

Pinduoduo’s shares were reduced, but the current price increase suggests positive sentiment towards the company, reflecting confidence in its growth potential in the Chinese e-commerce market.

AMD – Advanced Micro Devices

  • Portfolio Allocation: 3.60%
  • Recent Activity: Reduced holdings by 15.95%.
  • Shares Held: 1,370,000.
  • Reported Price: $162.21 per share.
  • Value at Reported Price: $222,228,000.
  • Current Price: $147.36 per share.
  • Price Change: -9.15%.
  • 52-Week Range: $93.12 – $227.30.

 

AMD saw a substantial reduction, likely due to volatility in the semiconductor sector. The price drop suggests Tepper’s cautious stance towards the stock after a strong performance in prior quarters.

 

ADBE – Adobe Inc.

  • Portfolio Allocation: 3.24%
  • Recent Activity: Added 2.86%.
  • Shares Held: 360,000.
  • Reported Price: $555.54 per share.
  • Value at Reported Price: $199,994,000.
  • Current Price: $554.16 per share.
  • Price Change: -0.25%.
  • 52-Week Range: $433.97 – $638.25.

 

Adobe’s shares were slightly increased, reflecting Tepper’s positive outlook on the company’s strong position in digital media and marketing software. The minimal price change suggests stable market sentiment.

 

FXI – iShares China Large-Cap ETF

  • Portfolio Allocation: 2.92%
  • Recent Activity: Added 8.86%.
  • Shares Held: 6,940,000.
  • Reported Price: $25.99 per share.
  • Value at Reported Price: $180,371,000.
  • Current Price: $25.84 per share.
  • Price Change: -0.58%.
  • 52-Week Range: $20.79 – $29.44.

 

The addition to FXI suggests a strategic bet on the broader Chinese market, reflecting Tepper’s anticipation of recovery or growth within China’s large-cap stocks. The small decline in price indicates stable but cautious sentiment towards Chinese equities.

 

Analysis of Top Holdings:

 

1.   Alibaba Group Holdings: Largest position, slightly reduced, reflecting cautious optimism about Chinese tech stocks.

2.   Amazon.com Inc.: Substantial reduction, likely due to market volatility, with a focus on managing exposure.

3.   Microsoft Corp.: Significant reduction, suggesting profit-taking while maintaining a strong position.

4.   Meta Platforms Inc.: Large reduction, despite current price appreciation, indicating strategic rebalancing.

5.   Alphabet Inc. CL C: Reduced holdings, reflecting caution amidst price decline in the tech sector.

6.   Oracle Corp.: Substantial reduction, likely part of a broader portfolio rebalance.

7.   Pinduoduo Inc.: Reduced position, with current price gains suggesting ongoing confidence in the stock.

8.   Advanced Micro Devices: Significant reduction, reflecting cautious approach amidst sector volatility.

9.   Adobe Inc.: Slight increase, indicating confidence in the company’s market leadership in digital software.

10.                 iShares China Large-Cap ETF: Addition reflects strategic exposure to the Chinese market, with stable price performance.

 

Overall, David Tepper’s Q2 2024 portfolio adjustments indicate a balanced approach, with significant reductions in some high-growth stocks to lock in gains or manage risk, while selectively adding to positions with strong future potential. The portfolio reflects a careful balance between technology, consumer, and international market exposures.

Who is David Tepper ?

1957:

·      David Alan Tepper is born on September 11 in Pittsburgh, Pennsylvania.

1978:

·      Graduates with a Bachelor of Arts degree in economics from the University of Pittsburgh.

1980:

·      Begins working for Equibank as a credit analyst in the treasury department.

1982:

·      Earns an MBA from Carnegie Mellon University.

1984:

·      Joins Keystone Mutual Funds in Boston.

1985:

·      Is recruited by Goldman Sachs to work as a credit analyst in its high yield group in New York City, and within six months becomes head trader.

1992:

·      Leaves Goldman Sachs after being passed over for partner and starts trading his personal account.

1993:

·      Founds Appaloosa Management.

2001:

·      Generates a 61% return by focusing on distressed bonds.

2009:

·      Earns about $7 billion for his hedge fund by buying distressed financial stocks, with $4 billion going to his personal wealth, making him the top-earning hedge fund manager of the year.

2011:

·      Awarded Institutional Hedge Fund Firm of the Year in June.

2013:

·      Donates $67 million to Carnegie Mellon University, leading to the business school being named the Tepper School of Business. Forbes ranks him as the top hedge fund earner of 2012.

2016:

·      Divorces Marlene Tepper.

2018:

·      Purchases the Carolina Panthers for $2.2 billion in May, becoming the owner. Praises President Trump’s corporate tax cuts in January. Awarded an honorary doctorate degree and serves as the keynote speaker at Carnegie Mellon University’s 121st Commencement.

2019:

·      Marries Nicole Bronish.

2020:

·      Donates $2.65 million through the David A. Tepper Foundation to help Chicago with the coronavirus pandemic. His cumulative donations toward COVID-19 relief efforts exceed $22 million in April. Returns a portion of his portfolio to Alibaba and Amazon, making them the largest parts at 13% and 11%, respectively.

2021:

·      Announces a $1 million donation to the Hurricane Ida relief effort through the Nicole & David Tepper Foundation and the David A. Tepper Charitable Foundation in September.

2023:

·      Fined $300,000 by the NFL for throwing a drink at a fan during the Panthers’ game against the Jacksonville Jaguars on December 31.

David Tepper's Investing Principles

I think when it comes to decisions, I try not to be emotional. To drown out the noise and look at the important facts.

David Tepper

There is a time to make money and a time to not lose money

David Tepper

This company looks cheap, that company looks cheap, but the overall economy could completely screw it up. The key is to wait. Sometimes the hardest thing to do is to do nothing.

David Tepper

We keep our cool when others don’t. The point is, markets adapt. People adapt. Don’t listen to all the crap out there.

David Tepper

We don’t really buy high-flyers. We buy before they get high-flyers.

David Tepper

Those who keep their heads while others are panicking do well.

David Tepper

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