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When the Dust Settles - David Tepper’s Top Four in Review

July 21, 2013 | About:
Sally Jones

Sally Jones

49 followers
“All the concern in the markets is because The Fed sees the economy strong in the future,” David Tepper told CNBC last month. With a net worth of $7 billion, self-made alpha investor David Tepper has earned his reputation for turning panic into profit. Case in point, when Citigroup (C) shares were crashing back in 2009, Tepper determined that the banks would not be nationalized. Today Citigroup and his C shares are up 107% over 12 months and 27% since January.

His hedge fund, Appaloosa Management, had net returns of almost 30% last year, with an average annual return of 23.3% over 5 years, and 29.2% since inception in 1993. His portfolio lists 61 stocks, nine of them new, with a total value of $4.7 billion, and a quarter-over-quarter turnover of 11%.

Here’s a review of Tepper’s top four holdings and how they are performing:

Up 107% over 12 months:

No. 1: Citigroup Inc. (C)

Weighting: 8%

Shares Owned: 8,519,547

Share Price: $52.35

The fifth top Guru shareholder of Citigroup Inc. (C), David Tepper owns 0.28% of shares outstanding. His five-year trading history shows double digit gains all the way, with his highest gain of 88.1% in the fourth quarter of 2011 when he sold around 2.5 million shares at an average price of $27.83.

Citigroup Inc. was incorporated in 1988 and has a market cap of $160.33 billion; its shares were traded at around $52.35 with a P/E ratio of 16.80 and a P/S ratio of 2.17. The dividend yield of Citigroup Inc. stocks is 0.08%.

His holding history:



Tracking historical pricing:

1374428062570.png

Up 60% over 12 months:

No. 2: United Continental Holdings Inc. (UAL)

Weighting: 5.8%

Shares Owned: 8,508,613

Share Price: $34.51

The top shareholder of airline company United Continental Holdings Inc. (UAL), David Tepper owns 8,508,613 shares of UAL, with 2.56 of shares outstanding. This holding accounts for 5.8% of his equity portfolio. Tepper’s trading history shows 12 quarters of double-digit gains. His average gain on shares bought and sold is 49% and 70%, respectively.

His holding history:



Up 60% over 12 months, United Continental Holdings Inc. has a market cap of $11.47 billion; its shares were traded at around $33.51 with a P/B ratio of 23.92 and P/S ratio of 0.42.

1374429054321.png

Down 30% over 12 months:

No. 3: Apple Inc. (AAPL)

Weightings: 5.1%

Shares Owned: 540,000

Share Price: $424.95

David Tepper is the number eight top Guru shareholder of AAPL.

No longer Appaloosa Management’s top public equity holding, Tepper’s AAPL was sliced by 40.83% in the first quarter of 2013, leaving him with 0.06% shares outstanding. His portfolio weight is 5.1%, down from 10.1% earlier this year.

Founded in 1977, Apple Inc. (AAPL) has a market cap of $405.27 billion; its shares were traded at around $424.95 with a P/E ratio of 10.10 and P/S ratio of 2.38. The dividend yield of Apple Inc. stocks is 2.59%. Apple Inc. has had an annual average earnings growth of 82.7% over the past 10 years. GuruFocus rated Apple Inc. the business predictability rank of 4.5-star.

Tepper’s trading history shows that he has held AAPL since the first quarter of 2011 when he bought on average at $345.68 per share, for a gain of 22.9%. The AAPL holding has lost from first quarter of 2012 through the first quarter of 2013, so much that his average loss on shares bought and sold is 13% and 10%, respectively.

His holding history:



Historical pricing:

1374430050556.png

Up 7% over 12 Months

No. 4: Qualcomm Inc. (QCOM)

Weighting: 4.2%

Shares Owned: 2,979,941

Share Price: $61.46

In the top 20 shareholders of Qualcomm. (QCOM), David Tepper owns 2,979,941 QCOM shares with 0.17% of shares outstanding. This holding accounts for 4.2% of his equity portfolio.

Tepper’s trading history shows his QCOM holding is a relatively new holding. In the first quarter of 2012, he first bought around 1.5 million shares at an average price of $61.60, for a loss of 0.2%. He increased his position in first quarter 2013 by 7.58%.

His holding history:



A manufacturer of digital wireless telecommunications products and services, Qualcomm has a market cap of $105.6 billion; its shares were traded at around $61.46 with a P/E ratio of 17.20 and P/S ratio of 4.98. The dividend yield of Qualcomm stocks is 1.79%. Qualcomm Inc. has had an annual average earnings growth of 14.3% over the past 10 years. GuruFocus rated Qualcomm the business predictability rank of 4-star.

1374430812736.png

David Tepper is the founder and president of Appaloosa Management, founded in 1993. According to Forbes, last year David Tepper was the highest-earning individual among the top 40 hedge fund managers and traders, listing a personal income of $2.2 billion.

Here is the complete portfolio of David Tepper.



1. David Tepper's Undervalued Stocks

2. David Tepper's Top Growth Companies

3. David Tepper's High Yield stocks

4. Stocks that David Tepper keeps buying

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.8/5 (5 votes)

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