6 Stocks Purchased by Billionaire Tepper Include Oracle, Apple
|David Tepper (Appaloosa Management)|
After eliminating his hedge fund's positions in bank stocks like Bank of America and Wells Fargo (WFC) in the third quarter, Tepper dropped his entire stake in Citigroup and E*Trade Financial (ETFC) during the past quarter. As of Sept. 30, Appaloosa owned 2.5 million shares of Citigroup with a market value of $64.5 million.
Hedge fund and investment managers who oversee more than $100 million are required to disclose their equity holdings, options and convertible debt on a Form 13F filed to the Securities and Exchange Commission within 45 days of the end of a quarter. Funds aren't required to report short positions, which bet on declines. Tepper ended the fourth quarter with 23 reported holdings that carried a market value of $764 million. During the quarter, Tepper sold completely out of 23 positions, including Citigroup and E*Trade.
Tepper took an ax to his energy, materials and industrials holdings, reducing the hedge fund's exposure to all three sectors from three months earlier. Petroleum refiners HollyFrontier(HFC) and Tesoro(TSO) , potash company Mosaic(MOS) and Delta Air Lines (DAL) were among Tepper's liquidations during the fourth quarter.
Appaloosa also reduced positions in other energy, industrials and materials companies. The hedge fund trimmed its holdings in Valero(VLO) , CF Industries (CF) , International Paper (IP) , CVR Energy (CVI) and Goodyear(GT) .
However, Tepper's Appaloosa hedge fund hasn't completely given up on risk. The famed hedge fund manager initiated four new positions and added to two others in the fourth quarter, which are detailed below and on the following pages.
General Motors (GM)
Company Profile : General Motors is the world's largest automaker by sales, having emerged from Chapter 11 bankruptcy protection in 2009.
Tepper's Investment : While the fund cut its entire stake in Dana Holding (DAN) , Appaloosa picked up more GM warrants in the fourth quarter, a stake that represents less than 1% of Tepper's disclosed portfolio.
Share Price Performance : Although Tepper's fund doesn't own the actual common shares, GM's stock has performed solidly this year, up 25% already.
Company Profile : Apple is the maker of hot consumer electronic devices like the iPad, iPhone and Mac line of computers.