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David Tepper's Second Quarter New Buys

Monica Wolfe

Monica Wolfe

127 followers
Appaloosa founder and renowned hedge fund manager David Tepper is widely regarded for his excellent returns as well as his near perfect timing on his purchases. The guru made his much of his wealth by foreseeing and accurately playing the housing crisis and the financial recovery that was to follow.

Over the second quarter, David Tepper made new buys in to 12 stocks across various sectors of the market. The hedge fund’s portfolio is valued at nearly $7 billion which is a new high for the guru.

According to the most recent filings of Appaloosa Management, the fund owns 69 stocks valued at $6.917 billion.



New Buys: QQQ, DIA, CBI, AXLL, HTZ, CCL, TEX, TRN, WWAV.B, PGEM

Check out the details of David Tepper’s stock buys and sells here.

David Tepper’s Top 5 New Buys

PowerShares QQQ Trust (QQQ)

David Tepper made his largest initial buy into the PowerShares QQQ Trust over the second quarter. The guru bought 5,750,000 shares in the quarterly price range of $67.17 to $74.30 with an estimated average price of $71.45. The price per share of QQQ has increased approximately 7.9% from his estimated average purchase price.

This buy makes up 5.9% of his total portfolio, making it his third largest holding. David Tepper’s holding history of QQQ as of the second quarter:

1376494279621.png

QQQ’s historical price:

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PowerShares QQQ has a market cap of $34.91 billion. Its shares are currently trading at around $76.74.

SPDR Dow Jones Industrial Average ETF (DIA)

David Tepper also bought into the Dow Jones Industrial over the duration of the second quarter. The guru bought 1,000,000 shares in the price range of $145.14 to $153.88 with an estimated average price of $149.44. The price per share has increased approximately 3.3% from the average price.

David Tepper’s new buy makes up for 2.2% of his total portfolio. His holding history of DIA as of the second quarter:

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DIA’s historical price:

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Diamonds Trust is a unit investment trust. The trust was created to provide investors with the opportunity to purchase units of beneficial interest in the trust representing proportionate undivided interests in the portfolio of securities consisting of substantially all of the common stocks, which compromise the Dow Jones Industrial Average.

DIA has a market cap of $12.04 billion. Its shares are currently trading at around $153.49.

Chicago Bridge & Iron Company (CBI)

Tepper’s third largest new buy came from Chicago Bridge & Iron. The guru bought 1,501,044 shares in the price range of $50.92 and $63.74, with an estimated average price of $58.09. The price per share has increased 2.2% from the average price.

Tepper’s new buy represents 1.42% of the company’s shares outstanding as well as 1.3% of his total portfolio. David Tepper’s holding history of CBI as of the close of the second quarter:

1376494998143.png

The company provides conceptual design, technology, engineering, procurement, fabrication and construction, commissioning and associated maintenance services to customers in the energy and natural resource industries.

Chicago Bridge & Iron’s historical revenue and net income:

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The Peter Lynch Chart shows that CBI appears to be overvalued:

1376497548955.png

Chicago Bridge & Iron Company has a market cap of $6.47 billion. Its shares are currently trading at around $60.29 with a P/E ratio of 19.80, a P/S ratio of 0.80 and a P/B ratio of 3.80. The company had an annual average earnings growth of 20.7% over the past 10 years.

Axiall Corp (AXLL)

During the second quarter Tepper made his initial buy into Axiall, buying a total of 1,877,715 shares of the company’s stock. The guru bought these shares in the price range of $41.06 to $60.10, with an estimated average price of $49.15 per share. The share price has dropped -10.6% from the average price.

Tepper’s position in Axiall makes up for 1.2% of his total portfolio as well as 2.69% of the company’s shares outstanding.

Tepper’s holding history as of the second quarter:

1376495217029.png

The company is a North American manufacturer and international marketer of chemicals and building products.

Axiall’s historical revenue and net income:

1376497970400.png

The Peter Lynch Chart shows that Axiall appears to be slightly overvalued:

1376498050068.png

Axiall has a market cap of $3.1 billion. Its shares are trading at around $44.32 with a P/E ratio of 15.70, a P/S ratio of 0.60 and a P/B ratio of 1.30. The company had an annual average earnings growth of 26% over the past five years.

Hertz Global Holdings (HTZ)

Tepper’s fifth largest new buy comes from Hertz Global Holdings. The guru initiated his position by purchasing 2,984,439 shares. He purchased these shares in the second quarter price range of $21.91 to $26.16, with an estimated average price of $24.36 per share. The price per share has increased approximately 3.4% from the average price.

Tepper’s new buy makes up 1.1% of his total portfolio and 0.71% of Hertz’s shares outstanding.

Tepper’s holding history as of the second quarter:

1376495584376.png

Hertz is a successor to corporations that have been engaged in the car and truck rental and leasing business since 1918 and the equipment rental business since 1965. The Company owns worldwide airport general use car rental brand and equipment rental businesses in the U.S. and Canada.

Hertz’s historical revenue and net income:

1376498137796.png

The Peter Lynch Chart shows that Hertz appears to be overvalued:

1376498179754.png

Hertz Global Holdings has a market cap of $10.12 billion. Its shares are currently trading at around $25.21 with a P/E ratio of 33.20, a P/S ratio of 1.20 and a P/B ratio of 5.10. The company had an annual average earnings growth of 3.6% over the past 10 years.

Check out David Tepper’s second quarter portfolio here.

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