David Tepper (Trades, Portfolio)’s long equity portfolio update for the fourth quarter indicates he is betting on an oil rebound, with more than a third of his new buys coming from the energy sector, including the two largest.
Tepper initiated 24 new long positions at his hedge fund, Appaloosa Management, for a total of 52 holdings and turnover of 39%. Energy holdings represented roughly 10% of the portfolio at quarter-end, the sixth largest sector represented. The entire portfolio was valued at $5 billion.
For 2015 Tepper ranked as the third most profitable hedge fund manager in operation, with a $22.8 billion gain since Appaloosa’s founding in 1993. The firm ended the year with $17.9 billion in assets under management. Tepper uses fundamental analysis in his stock picking but is also famous for his market predictions.
His biggest new stock purchase in the fourth quarter were: Energy Transfer Partners LP (ETP, Financial), Kinder Morgan Inc. (KMI, Financial), Abengoa Yield PLC (ABY, Financial), TerraForm Power Inc. (TERP, Financial) and Pfizer Inc. (PFE, Financial).
Energy Transfer Partners LP (ETP, Financial)
Tepper bought 5,143,082 shares of Energy Transfer Partners, a 3.46% portfolio weight. The stock traded at $40 per share on average for the quarter.
Energy Transfer Partners LP is a Delaware limited partnership. Energy Transfer Partners LP has a market cap of $13.12 billion; its shares were traded at around $26.14 with a P/E ratio of 96.78 and P/S ratio of 0.26. The dividend yield of Energy Transfer Partners LP stocks is 15.9%. Energy Transfer Partners LP had an annual average earnings growth of 9.3% over the past 10 years.
Kinder Morgan Inc. (KMI, Financial)
Tepper bought 9,445,321 shares of Kinder Morgan, a 2.8% portfolio weight. The stock’s average price was $24 per share.
Kinder Morgan Inc. is a midstream and energy company formed in Aug. 23, 2006. Kinder Morgan Inc. has a market cap of $34.32 billion; its shares were traded at around $15.38 with a P/E ratio of 34.14 and P/S ratio of 1.83. The dividend yield of Kinder Morgan Inc. stocks is 10.42%.
Abengoa Yield PLC (ABY, Financial)
Tepper bought 6,303,713 shares of Abengoa Yield PLC, a 2.4% portfolio weight. The average share price was $18.
Abengoa Yield PLC is incorporated Dec. 17, 2013 in UK. Abengoa Yield PLC has a market cap of $1.47 billion; its shares were traded at around $14.65 with a P/E ratio of 234.56 and P/S ratio of 1.79. The dividend yield of Abengoa Yield PLC stocks is 9.74%.
TerraForm Power Inc. (TERP, Financial)
Tepper bought 7.6 million shares of TerraForm Power, a 1.9% portfolio weight. The share price averaged $14.
TerraForm Power Inc. was formed on Jan. 15, 2014. Terraform Power Inc has a market cap of $1.16 billion; its shares were traded at around $8.23 with and P/S ratio of 1.16. The dividend yield of Terraform Power Inc. stocks is 15.57%.
Tepper bought 2,412,250 shares of Pfizer Inc., a 1.55% portfolio weight. The share price averaged $33.
Pfizer Inc. was incorporated under the laws of the State of Delaware on June 2, 1942. Pfizer Inc. has a market cap of $183.21 billion; its shares were traded at around $29.68 with a P/E ratio of 22.34 and P/S ratio of 3.89. The dividend yield of Pfizer Inc. stocks is 3.85%. Pfizer Inc. had an annual average earnings growth of 2.3% over the past 10 years.
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