David Tepper (Trades, Portfolio) is the founder of Appaloosa Management, which is a $3 billion hedge fund investment firm based in Chatham, New Jersey. The following are his largest trades of the second quarter.
The investor exited his stake in Delta Air Lines Inc. (DAL) with an impact of -7.4% on the portfolio.
Delta provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The company's business segments are airline and refinery. During the second quarter, it generated $1.6 billion in free cash flow and its earnings per share grew 16%.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with a ROE of 44.47% and a ROA of 9.05%, which are outperforming 70% of the companies in the Global Airlines industry. Financial strength has a rating of 6 out of 10, with a cash to debt ratio of 0.38, which is below the industry median of 0.46.
The largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 2.6% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.34%, First Eagle Investment (Trades, Portfolio) with 0.33% and Joel Greenblatt (Trades, Portfolio) with 0.17%.
The guru raised his stake in Allergan PLCÂ (AGN) by 351.73%, with an impact of 5.96% on the portfolio.
Allergan is engaged in developing, manufacturing and distributing generic, brand and biosimilar products. During the second quarter, total revenues grew 2% versus the same quarter a year ago and adjusted EBITDA from continuing operations was $1.94 billion, compared to $2.08 billion for the second quarter of 2015.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10, with a ROE of 5.45% and a ROA of 3.23%, which are underperforming 54% of the companies in the Global Drug Manufacturers - Specialty & Generic industry. Financial strength has a rating of 4 out of 10, with a cash to debt ratio of 0.01, which is far below the industry median of 23.15.
Vanguard Health Care Fund (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 3.05% of outstanding shares, followed by Daniel Loeb (Trades, Portfolio) with 1.24%, John Paulson (Trades, Portfolio) with 1% and Carl Icahn (Trades, Portfolio) with 0.86%.
The investor closed his stake in Facebook Inc Class AÂ (FB) with an impact of -3.28% on the portfolio.
The company operates a social networking website. Its products are Facebook, Instagram, Messenger, WhatsApp and Oculus. Its products enable people to connect and share through mobile devices and personal computers. Daily active users (DAUs) had an increase of 17% year-over-year and Mobile DAUs had an increase of 22% year-over-year. Mobile advertising revenue represented approximately 84% of advertising revenue, up from approximately 76% of advertising revenue in the second quarter of 2015.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10, with a ROE of 13.47% and a ROA of 12.15%, which are outperforming 67% of the companies in the Global Internet Content & Information industry. Financial strength has a rating of 10 out of 10, with no debt.
The largest shareholder among the gurus is Frank Sands (Trades, Portfolio) with 0.8% of outstanding shares, followed by Andreas Halvorsen (Trades, Portfolio) with 0.7%, Steve Mandel (Trades, Portfolio) with 0.38%, Spiros Segalas (Trades, Portfolio) with 0.33% and Daniel Loeb (Trades, Portfolio) with 0.13%.
The guru reduced his stake in Energy Transfer Partners LPÂ (ETP) by 29.39%, with an impact of -2.72% on the portfolio.
The company is engaged in natural gas operations. Its activities include intrastate transportation & storage, interstate transportation & storage, midstream services and retail marketing, among others. Second quarter net income attributable to Partners was $241 million, compared to $298 million for the same quarter a year ago.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with a ROE of -1.37% and a ROA 1.75%, which are underperforming 72% of the companies in the Global Oil & Gas Midstream industry. Financial strength has a rating of 4 out of 10, with a cash to debt ratio of 0.01, which is below the industry median of 0.05.
David Tepper (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 2.18%, followed by Leon Cooperman (Trades, Portfolio) with 0.26%.
The guru reduced his stake in HCA Holdings Inc. (HCA) by 61.65%, with an impact of -2.7% on the portfolio.
HCA is a health care services company. It operates general acute care hospitals, psychiatric hospitals and rehabilitation hospitals. It also operates freestanding surgery centers. During the second quarter, revenues grew 4.3% and net income attributable to HCA Holdings Inc. totaled $658 million, or $1.65 per diluted share, compared to $507 million, or $1.18 per diluted share, in the second quarter of 2015.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10, with a ROE of 7.34% and a ROA of 31.46%, which are outperforming 66% of the companies in the Global Medical Care industry. Financial strength has a rating of 4 out of 10, with a cash to debt ratio of 0.02, which is below the industry median of 0.42.
The largest shareholder among the gurus is Larry Robbins (Trades, Portfolio) with 3.85% of outstanding shares, followed by Vanguard Health Care Fund (Trades, Portfolio) with 3.09%, David Tepper (Trades, Portfolio) with 0.32%, Andreas Halvorsen (Trades, Portfolio) with 0.29% and Joel Greenblatt (Trades, Portfolio) with 0.24%.
The investor bought 1,450,000 shares in Western Digital Corp. (WDC) with an impact of 1.8% on the portfolio.
Western Digital is a developer, manufacturer and provider of data storage solutions that enable consumers, businesses, governments and other organizations to create, manage, experience and preserve digital content. Its products include HDDs and SSDs. During the fourth quarter, it generated $355 million in cash from operations, ending with total cash and cash equivalents of $8.2 billion and it achieved revenue of $13.0 billion and net income of $257 million, or $1.06 per share, compared to fiscal 2015 revenue of $14.6 billion and net income of $1.5 billion, or $6.18 per share.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10, with a ROE of 2.48% and a ROA of 5.29%, which are underperforming 62% of the companies in the Global Data Storage industry. Financial strength has a rating of 5 out of 10, with a cash to debt ratio of 0.49, which is below the industry median of 1.47.
T Rowe Price Equity Income Fund (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 1.26% of outstanding shares, followed by Charles Brandes (Trades, Portfolio) with 0.79%, First Pacific Advisors (Trades, Portfolio) with 0.75% and David Tepper (Trades, Portfolio) with 0.51%.
The guru closed his stake in Bank of America Corporation (BAC) with an impact of -1.67% on the portfolio.
The company, through its subsidiaries, provides banking and non-banking financial services and products throughout the United States and in selected international markets. Second quarter net income was $4.2 billion and EPS was 36 cents, compared to $5.1 billion and 43 cents in the same quarter a year ago and noninterest income was $11.2 billion, compared to $11.5 billion.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10, with a ROE of 5.02% and a ROA of 0.67%, which are underperforming 47% of the companies in the Global Banks - Global industry. Financial strength has a rating of 5 out of 10, with a cash to debt ratio of 0.68, which is below the industry median of 2.23
The largest shareholder among the gurus is Dodge & Cox with 2.18% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.82%, HOTCHKIS & WILEY with 0.59%, Ken Fisher (Trades, Portfolio) with 0.42% and First Pacific Advisors (Trades, Portfolio) with 0.32%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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