David Tepper’s Appaloosa Portfolio Surges Nearly 50%: Latest 13F Insights
According to recent 13F filings, hedge fund titan David Tepper’s Appaloosa Management significantly increased its investments in Micron, Facebook, and Apple.
Billionaire investor David Tepper, founder of Appaloosa Management, recently disclosed his quarterly 13F report. The SEC filings reveal that Appaloosa’s portfolio soared by nearly 50% during the last quarter of 2017.
Entering 2018, Appaloosa Management’s top holdings included Micron Technology Inc. (MU), Facebook Inc. (FB), and the Invesco QQQ Trust (QQQ).
$10.5 Billion Portfolio Overview
As of December 31, 2017, Appaloosa’s stock portfolio, as detailed in the 13F filings, was valued at an impressive $10.5 billion. This marked a remarkable 47.5% increase compared to the previous quarter, according to Value Walk.
In contrast, the S&P 500 index rose just over 6% during the same period. While many hedge funds strive to match the S&P’s performance, Appaloosa clearly outpaced this benchmark by a wide margin.
The seven largest positions within Appaloosa’s portfolio represent more than half of its total stock assets, as per the 13F data. Micron stock alone accounts for nearly 11% of the portfolio, with a holding valued at over $1.1 billion.
Facebook comprises 9.3% of the portfolio, with shares worth more than $975 million, while QQQ makes up 8.6%, valued at $903.4 million. Apple Inc. (AAPL) and Alibaba Group (BABA) follow, together making up just under 15% of the portfolio. (Related: Jana Partners Adds Facebook, Comcast, and Teva to Holdings: 13F Filings.)
Identifying Undervalued Opportunities
To assess whether Appaloosa might sustain its strong performance in upcoming quarters, Value Walk analyzed stocks in Tepper’s portfolio that could be trading below their intrinsic value. Notable undervalued picks include Energy Transfer Equity (ETE), Western Digital Corp. (WDC), and HCA Healthcare Inc. (HCA). Micron Technology also appears to be potentially undervalued.
Tepper’s knack for selecting winning stocks is well-known, underscored by the market rally named after him. In early 2009, he capitalized on distressed financial stocks, reaping substantial gains when the market recovered. This savvy move reportedly earned him $7 billion, securing his position as the highest-earning hedge fund manager that year.
Despite Tepper’s impressive track record, investors should recognize the inherent limitations of 13F filings. These reports are retrospective and may not accurately represent an investor’s current holdings when made public. Relying solely on the investment moves of leading hedge funds from months prior might not be the best strategy. (See also: Billionaire Ray Dalio’s Bridgewater Makes Big ETF Bets: 13F Filing.)
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