David Tepper Buys 4 New Stocks in Q3

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Nov 19, 2014
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David Tepper (Trades, Portfolio), founder of $20 billion Appaloosa Management and the highest paid hedge fund manager last year,

“The U.S. economy’s pretty good… With the stock markets, I really don’t think that you’re at high multiples right now,” he said on Bloomberg on Oct. 1. “You know what, [high yield bond spreads] were on the rich side of fair value. Now they’re probably in the more mid-point of fair value,” he added.

In the third quarter, the hedge fund manager bought four new stocks: NXP Semiconductors NV (NXPI, Financial), Lorillard Inc. (LO, Financial), Alibaba Group Holding Ltd. (BABA, Financial) and Shire PLC (SHPG, Financial).

NXP Semiconductors NV (NXPI, Financial)

Tepper purchased 2,530,584 shares of NXP Semiconductors NV, giving it 2.6% weight in his portfolio. The stock’s price averaged $67 in the third quarter.

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NXP Semiconductors NV was incorporated in the Netherlands as a Dutch private company with limited liability under the name KASLION Acquisition B. NXP Semiconductors NV has a market cap of $17.1 billion; its shares were traded at around $74.55 with a P/E ratio of 41.10 and P/S ratio of 3.68.

Lorillard Inc. (LO, Financial)

Tepper purchased 1,421,000 shares of Lorillard Inc., making it 1.3% of the portfolio. The stock’s price averaged $70 in the quarter.

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Lorillard Inc. through its subsidiaries is engaged in the manufacture and sale of cigarettes. Lorillard Inc. has a market cap of $22.36 billion; its shares were traded at around $62.44 with a P/E ratio of 19.9 and P/S ratio of 3.25. The dividend yield of Lorillard Inc. stocks is 3.9%. Lorillard Inc. had an annual average earnings growth of 14.7% over the past five years.

Alibaba Group Holding Ltd. (BABA, Financial)

Tepper purchased 725,000 shares of Alibaba, a 0.95% portfolio holding. The stock price averaged $90 for the quarter.

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Alibaba Group Holding Ltd. was incorporated in the Cayman Islands on June 28, 1999. Alibaba Group Holding Ltd. has a market cap of $282.18 billion; its shares were traded at around $110.81 with a P/E ratio of 107.40 and P/S ratio of 50.85. Alibaba Group Holding Ltd. had an annual average earnings growth of 155.50% over the past five years.

Shire PLC (SHPG, Financial)

Tepper bought 185,944 shares of Shire PLC a 0.71% portfolio weight. The stock’s quarterly share price averaged $248.

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Shire PLC was registered in Jersey on Jan. 28, 2008. Shire PLC has a market cap of $41.15 billion; its shares were traded at around $210.00 with a P/E ratio of 32.9 and P/S ratio of 7.4. The dividend yield of Shire PLC stocks is 0.3%. Shire PLC had an annual average earnings growth of 16.8% over the past five years.

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