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The Financials David Tepper Sold: BAC, C, WFC, COF, STI and More

November 15, 2010 | About:
guruat

guruek

80 followers
I confess that I envy David Tepper. Who wouldn’t if he/she sees the following returns of Tepper’s fund Appaloosa Investment LP during the past 17 years or so:

Performance of Appaloosa Investment LP I

YearReturn (%)S&P500 (%)Excess Gain (%)
2009132.7226.5106.2
2008-26.72-3710.3
20078.885.613.3
200625.8615.7910.1
200520.554.9115.6
5-Year Cumulative181.72.2179.5
200433.811221.8
2003148.8228.7120.1
2002-24.8-22.1-2.7
200166.75-11.978.6
20000.04-9.19.1
10-Year Cumulative1076.7-8.11084.8
199960.892139.9
1998-29.1928.6-57.8
199729.5433.4-3.9
199678.462355.5
199542.0637.64.5
15-Year Cumulative4302.42234079.4
199419.031.317.7
199357.6210.147.5


For the past five years, the fund returned 181.7%; 10 years, 1076%; and 15 years, 4302%.

The hedge fund manager makes quick sector bets and he goes both long and short. As near as September, he went to CNBC and presented a very bullish call for the equities: stocks will go up if the economy does well; stocks will still do well if the economy does not do well then the Fed will flood the market with money through QE2:



Perhaps as he was speaking, he was shifting his portfolio in a big way: Financials are reduced from 48.5% of his long portfolio to 31.5%, Technologies and Healthcares have seen the most increases in his portfolio.

Industry2010-06-302010-09-30
Technology3.4%15.1%
Financials48.5%31.5%
Consumer Services6.8%7.3%
Health Care8.4%16.3%
Consumer Goods1.7%1.7%
Industrials2.2%1.1%
Basic Materials2.7%3.1%
Oil & Gas2.7%%


David Tepper gave such a high profile testimony to the bull case. When he trimmed shares in Financials, there are people who might feel double-crossed. It is certainly within his power to move his money around. In the interview, he did mention that he does not think banks are cheap at this point. Tepper found something more attractive so he moved money to those sectors.

Here are the Financials he sold or reduced during the quarter:

Symbol Price ($) Number of Shares Value ($1000) Percentage (%) Quarterly Change
HIG 24.4 1521535 34919 1.04 -75.38
GKK 2.13 1730221 2405 0.07 -44.45
COF 39.27 1428817 56510 1.69 -19.17
WFC 27.54 6410700 161101 4.8 -18.86
STI 25.11 3851090 99474 2.97 -18.73
FITB 12.87 10327506 124240 3.71 -18.65
CNO 5.83 918195 5087 0.15 -18.47
WSH 33 1094080 33720 1.01 -18.34
STD 11.64 615915 7797 0.23 -18.32
BBT 24.82 463641 11164 0.33 -18.24
BAC 12.12 22473699 294630 8.79 -17.83
C 4.29 51250000 199875 5.96 -11.31
BEE 4.7 1125056 4770 0.14 -9.12
MPG 2.42 3717100 9293 0.28 -8.14
NCT 4.81 3899297 12088 0.36 -4.78
ETFC 14.98 0 0 Sold Out


Highlight of just a few holdings:

Bank of America Corp. (BAC)

Bank of America Corp. is one of the world's financial services companies. Bank Of America Corp. has a market cap of $121.61 billion; its shares were traded at around $12.12 with a P/E ratio of 55.09 and P/S ratio of 0.81. The dividend yield of Bank Of America Corp. stocks is 0.33%.



Citigroup Inc. (C)

Citigroup Inc., the global financial services company, has some two hundred million customer accounts and does business in more than hundred countries, providing consumers, corporations, governments, and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citigroup Inc. has a market cap of $124.62 billion; its shares were traded at around $4.29 with and P/S ratio of 1.37.



Wells Fargo & Company (WFC)

Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage and consumer finance services through stores, its Internet site and other distribution channels across North America as well as internationally. Wells Fargo & Company has a market cap of $144.13 billion; its shares were traded at around $27.54 with a P/E ratio of 15.92 and P/S ratio of 1.46. The dividend yield of Wells Fargo & Company stocks is 0.73%. Wells Fargo & Company had an annual average earning growth of 5.1% over the past 10 years.



Capital One Financial Corp. (COF)

Capital One Financial is a holding company whose subsidiaries provide a variety of products and services to consumers using its proprietary information-based strategy. Capital One Financial Corp. has a market cap of $17.94 billion; its shares were traded at around $39.27 with a P/E ratio of 6.5 and P/S ratio of 1.12. The dividend yield of Capital One Financial Corp. stocks is 0.51%. Capital One Financial Corp. had an annual average earning growth of 0.4% over the past 10 years.



SunTrust Banks Inc. (STI)

SunTrust Banks, Inc. is a commercial banking organization. Suntrust Banks Inc. has a market cap of $12.55 billion; its shares were traded at around $25.11 with and P/S ratio of 1.2. The dividend yield of Suntrust Banks Inc. stocks is 0.16%.



Check out his other trading activities by clicking on David Tepper.


Rating: 2.3/5 (6 votes)

Comments

paulwitt
Paulwitt - 3 years ago
*David Tepper still has his largest position in financials at 31.5%

Disclosure: I bought a few shares of NBG, IRE, and AIB as an option on European banks....



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