David Tepper (Trades, Portfolio) is the founder of hedge fund Appaloosa Management, widely followed for repeatedly acing the market in both up and down years. Last year was no different, with the guru reporting to returning more than 40% gross on his investors’ money.
In a November Bloomberg interview, Tepper said for 2014 he foresees markets possibly falling 5% to 10% as a result of decreased Federal stimulus, but is bullish on stocks overall. Last year, he also said his “big play in the market” was airlines, and according to his newly released fourth quarter portfolio, he is retaining his significant investment in the sector.
Tepper’s Top New Buys
American Airlines Group Inc. (NASDAQ:AAL)
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- AAL 15-Year Financial Data
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- Peter Lynch Chart of AAL
What appears to be Tepper’s largest new buy, American Airlines Group Inc. (NASDAQ:AAL), is in a former holding trading under a new ticker symbol after a December merger. He reports owning 7,022,765 shares of the company, occupying 2.2% of his portfolio. The stock’s price averaged $26 in the fourth quarter.
American Airlines Group formed on Dec. 9, 2013, as a result of the merger between American Airlines and US Airways Group. Together, the two companies have an $11.55 billion market cap, and operate approximately 6,700 daily flights to more than 50 countries.
In the third quarter, Tepper held 9,385,636 shares of US Airways Group Inc., which stood for about 2.8% of his portfolio.
American Airlines Group Inc. shares trade for around $34.41 on Monday, after appreciating almost 40% since the merger. The company has a P/E of 30.46.
Halliburton Company (NYSE:HAL)
Tepper purchased 992,600 shares of Halliburton Co. for a 0.63% holding. Shares on average were priced at $52 in the fourth quarter.
Halliburton Company was established in 1919 and incorporated under the laws of the State of Delaware in 1924. Halliburton Company has a market cap of $45.58 billion; its shares were traded at around $53.57 with a P/E ratio of 22.40 and P/S ratio of 1.60. The dividend yield of Halliburton Company stocks is 1.0%. Halliburton Company had an annual average earnings growth of 13.50% over the past 10 years.
Eastman Chemical Company (NYSE:EMN)
Tepper bought 601,112 shares of Eastman Chemical Company for a 0.61% portfolio position. The company’s fourth-quarter price averaged $78 per share.
Eastman Chemical Company began business in 1920 for the purpose of producing chemicals for Eastman Kodak Company's photographic business and became a public company, incorporated in Delaware, as of Dec. 31, 1993.
Eastman Chemical Company has a market cap of $12.75 billion; its shares were traded at around $82.84 with a P/E ratio of 17.30 and P/S ratio of 1.30. The dividend yield of Eastman Chemical Company stocks is 1.50%. Eastman Chemical Company had an annual average earnings growth of 19.50% over the past 10 years. GuruFocus rated Eastman Chemical Company the business predictability rank of 2-star.
Baidu Inc. (NASDAQ:BIDU)
Tepper bought 205,692 shares of Baidu Inc., equal to 0.46% of his portfolio. The fourth quarter average price was $162.
Baidu Inc. was incorporated in the Cayman Islands in January 2000. Baidu Inc. has a market cap of $58.56 billion; its shares were traded at around $167.48 with a P/E ratio of 42.70 and P/S ratio of 15.80. Baidu Inc. had an annual average earnings growth of 84.90% over the past five years.
CBS Corp (NYSE:CBS)
Tepper bought 489,000 shares of CBS Corp, a 0.39% portfolio holding. The fourth quarter share price average was $59.
CBS Corp was organized in Delaware in 1986. It is a mass media company with operations in the following segments: Television, Radio, Outdoor and Parks/Publishing. CBS Corp has a market cap of $38.98 billion; its shares were traded at around $64.96 with a P/E ratio of 22.80 and P/S ratio of 2.70. The dividend yield of CBS Corp stocks is 0.70%.