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:
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.
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:
Highlight of just a few holdings:
Check out his other trading activities by clicking on David Tepper.
Performance of Appaloosa Investment LP I
| Year | Return (%) | S&P500 (%) | Excess Gain (%) |
|---|---|---|---|
| 2009 | 132.72 | 26.5 | 106.2 |
| 2008 | -26.72 | -37 | 10.3 |
| 2007 | 8.88 | 5.61 | 3.3 |
| 2006 | 25.86 | 15.79 | 10.1 |
| 2005 | 20.55 | 4.91 | 15.6 |
| 5-Year Cumulative | 181.7 | 2.2 | 179.5 |
| 2004 | 33.81 | 12 | 21.8 |
| 2003 | 148.82 | 28.7 | 120.1 |
| 2002 | -24.8 | -22.1 | -2.7 |
| 2001 | 66.75 | -11.9 | 78.6 |
| 2000 | 0.04 | -9.1 | 9.1 |
| 10-Year Cumulative | 1076.7 | -8.1 | 1084.8 |
| 1999 | 60.89 | 21 | 39.9 |
| 1998 | -29.19 | 28.6 | -57.8 |
| 1997 | 29.54 | 33.4 | -3.9 |
| 1996 | 78.46 | 23 | 55.5 |
| 1995 | 42.06 | 37.6 | 4.5 |
| 15-Year Cumulative | 4302.4 | 223 | 4079.4 |
| 1994 | 19.03 | 1.3 | 17.7 |
| 1993 | 57.62 | 10.1 | 47.5 |
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.
| Industry | 2010-06-30 | 2010-09-30 |
|---|---|---|
| Technology | 3.4% | 15.1% |
| Financials | 48.5% | 31.5% |
| Consumer Services | 6.8% | 7.3% |
| Health Care | 8.4% | 16.3% |
| Consumer Goods | 1.7% | 1.7% |
| Industrials | 2.2% | 1.1% |
| Basic Materials | 2.7% | 3.1% |
| Oil & Gas | 2.7% | % |
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, Financial)
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, Financial)
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, Financial)
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, Financial)
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, Financial)
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.
