David Tepper

David Tepper

Last Update: 2014-02-14

Number of Stocks: 70
Number of New Stocks: 19

Total Value: $7,977 Mil
Q/Q Turnover: 30%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

David Tepper' s Profile & Performance

Profile

David Alan Tepper is the founder of Appaloosa Management, which is a $3 billion hedge fund investment firm based in Chatham, N.J., just west of New York City. David Tepper initially became interested in the stock market as a young boy watching his father trade stocks in his hometown of Pittsburgh. Today, as president and founder of Appaloosa Management, Tepper has earned an international reputation for producing some of the highest returns amongst fund managers on Wall Street. He earned a master of science in industrial administration from Carnegie Mellon in 1982. He donated a record $55 million to the Graduate School of Industrial Administration. The gift is the largest donation to Carnegie Mellon University in its 104-year history.

Investing Philosophy

He is a distressed-debt specialist, was once considered to be the hottest investor on wall street.

Total Holding History

Performance of Appaloosa Investment LP I

YearReturn (%)S&P500 (%)Excess Gain (%)
20102215.066.9
2009132.7226.46106.3
2008-26.72-3710.3
3-Year Cumulative108.1 (27.7%/year)-8.3 (-2.9%/year)116.4 (30.6%/year)
20078.885.613.3
200625.8615.7910.1
5-Year Cumulative185.1 (23.3%/year)12.1 (2.3%/year)173 (21%/year)
200520.554.9115.6
200433.811221.8
2003148.8228.7120.1
2002-24.8-22.1-2.7
200166.75-11.978.6
10-Year Cumulative1335 (30.5%/year)16.3 (1.5%/year)1318.7 (29%/year)
20000.04-9.19.1
199960.892139.9
1998-29.1928.6-57.8
199729.5433.4-3.9
199678.462355.5
15-Year Cumulative3680.8 (27.4%/year)170 (6.8%/year)3510.8 (20.6%/year)
199542.0637.64.5
199419.031.317.7
199357.6210.147.5

Top Ranked Articles

How David Tepper Became a Billionaire
Several major deals highlighted David Tepper’s career before he established his fame by making the all-time record payday of $4 billion investing in near-bankrupt banks in 2009. The distressed debt specialist actually made his all-time record return of 148% back in 2003 and has had a 30% average annualized return since he founded his firm, Appaloosa Management, in 1993. Read more...
How to Get an 8.4% Portfolio with the Help of Buffett, Tepper, Pabrai, Marks and Einhorn
At times like this, dividends are king. Stocks paying a high yield will hold up better as the market goes south. In this article I picked the highest yielding stocks from the portfolio of Warren Buffett, David Tepper, Mohnish Pabrai, Howard Marks and David Einhorn. By this way I created a portfolio of 5 stocks selected from superb Value Investors. Read more...
Investment Guru of the Year 2010: David Tepper
Hedge fund manager David Tepper of Appaloosa Management has been voted as the Investment Guru of the Year 2010 by GuruFocus users. He got more than 31% of the total votes casted up to today. Read more...
David Tepper’s Perfect Timing in Betting on Bank of America Corp., Fifth Third Bancorp, SunTrust Banks Inc Perfect Timing of David Tepper
(GuruFocus, Updated on July 6, 2009) David Tepper Hoarded Cash in 2008 David Tepper is a successful hedge fund manager and the founder of Appaloosa Management. With an estimated current net worth of around $1.2 billion, he is ranked by Forbes as the 601th richest person in the world. Read more...
David Tepper Speaks Again
David Tepper of Appaloosa Management shares his outlook for the year ahead today. Read more...
» More David Tepper Articles

How David Tepper Became a Billionaire

Several major deals highlighted David Tepper’s career before he established his fame by making the all-time record payday of $4 billion investing in near-bankrupt banks in 2009. The distressed debt specialist actually made his all-time record return of 148% back in 2003 and has had a 30% average annualized return since he founded his firm, Appaloosa Management, in 1993.

Tepper primarily specializes in distressed debt investing. He tends to buy distressed debt of companies on the verge of implosion and sells it when it matures. His firm now manages about $4 billion.

Power Companies (2001-2004)

Tepper’s assurance that the government would not let banks fail had at least one precedent. He made a small fortune in 2004 in a similar situation during the California electricity crisis. In 2000 and 2001, large swaths of the state of California faced blackouts and prominent electricity companies went bankrupt. The disaster began when energy companies created an artificial shortage by shutting down power plants for maintenance during times of peak usage. They then increased the price, allowing traders to sell power at significantly higher rates.

The government had also placed a price cap on retail electricity charges, which forced the industry to sell electricity at a loss. Drought and population growth in California exacerbated the situation. Consequently, Pacific Gas and Electric Company (PCG) went bankrupt, and Southern California Edison nearly went bankrupt as well.

The state of California stepped in to save the dying companies, which had together accumulated $20 billion of debt by early 2001 and had their credit ratings reduced to junk status. On January 2001, the state authorized the California Department of Water and Resources to buy power for Southern California Edison, and later it did the same for SDG&E. Companies resumed purchasing their own power in 2003.

David Tepper bought millions of shares of the two most affected power companies, Pacific Gas and Electric and Edison International (EIX), from 2001-2003, mostly when their stock traded in the teens or lower. He sold out of both companies in the beginning of 2004, when their stock had risen to the mid-$20s.

Enron, Worldcom, Conseco Bankruptcies (2002-2004)

In 2002 Tepper purchased at least $1 billion of the $14 billion of distressed debt and securities of one company that went bankrupt in the fallout of the energy crisis – Enron. Enron was accused of gaming the energy market and collapsed due to unethical bookkeeping and other causes.

Another company’s epic bankruptcy that year that paid off for Tepper. Worldcom concealed losses and misled the public about earnings, causing bond investors to lose about $7.6 billion when it defaulted on its debt, which Tepper purchased. “I’m buying a little bit today. It’s a big company with a lot of revenue so we probably will end up making money,” Tepper told the Seattle Times.

Conseco Inc., a U.S. insurance company that filed Chapter 11 bankruptcy in 2003, canceled its stock and gave ownership of the company in large part to bondholders. Tepper bought a large amount of cheap Conseco bonds when it was on the brink of bankruptcy. Conseco emerged from bankruptcy in 2003.

In 2003, Tepper returned 148% and in 2004, he was the second highest paid hedge fund manager, making $510 million, according to Institutional Investor.

Banks (2009)

Tepper’s seminal trades were made in 2009. Similar to John Paulson, he bought into financials confident that the government would not let the largest banks fail. While banks were teetering on the brink of bankruptcy and the majority of investors were believing the government would nationalize them, Tepper amassed bank-related securities, such as common and preferred shares and junior-subordinated debt.

In the first quarter of 2009, he bought 47.55 million shares of Bank of American at an average price of $6.73 per share. He then decreased his stake steadily as the stock rallied, reaching an average price of $15.79 in the fourth quarter of 2009.

He bought Bank of America preferred shares at 12 cents on the dollar and Citigroup bonds at 19 cents, and other bank debt of Washington Mutual and common and preferred shares of Wachovia, NBC reported. By the end of 2009, the companies’ stocks had recovered and he made billions.

In 2009 he made the highest payday in history of $4 billion, and achieved his second highest return of 132.7%.

Housing (2011)

With few large companies or sectors going under, Tepper has turned to one of the most distressed industries available – housing. He bought KB Homes (KBH), D.R. Horton Inc. (DHI), Pulte Group Inc. (PHM), Beazer Homes USA Inc. (BZH), Ryland Group Inc. (RYL), and Masco Corp. (MAS) in the first quarter of 2011.

Though none of the companies have balance sheets that forebode bankruptcy and none have announced an intention to, their stocks are cheap. The once-thriving companies now sell in the teens or lower.

Tepper is profiting less from disaster in the first quarter. His top five holdings are Citigroup (C), Prizer Inc. (PFE), Hewlett Packard Co. (HPQ), Bank of America Corp. (BAC), Goodyear Tire & Rubber (GT).

Commentaries and Stories

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

America's Two Largest Providers of Wired Broadband
Comcast Corporation (CMCSA) is a media and technology company with two businesses, Comcast Cable and NBCUniversal Media LLC. The company has five segments: Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks. More...

LONG, MEDIA, TECH, ENTERTAINMENT, CABLE


  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

5-Year Lows: Ruckus Wireless Inc., Alpha Natural Resources Inc., Aviv REIT Inc. and Ply Gem Holdings Inc.
According to GuruFocus list of 5-year lows, these Guru stocks have reached their five-year lows: Ruckus Wireless Inc., Alpha Natural Resources Inc., Aviv REIT Inc. and Ply Gem Holdings Inc. More...

  • Currently 5.00/5

Rating: 5.0/5 (3 votes)

Halliburton Is One of the World's Largest Oil Field Services Companies and Will Continue to Be
Halliburton Company (HAL) is a provider of services and products to the energy industry related to the exploration, development, and production of oil and natural gas. In this article, let's take a look at this company and try to explain to investors the reasons this is an apparently appealing investment. More...

LONG, ENERGY, SERVICES, OIL, GAS


  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Halvorsen Comes Head-to-Head with Cooperman Over Eastman Chemical
There is a certain fun about following gurus’ actions, especially when their actions disagree. That has been the case between Andreas Halvorsen (Trades, Portfolio) and Leon Cooperman (Trades, Portfolio). The first was the largest shareholder with 5,784,190 shares, until selling 91% of the position in the open market last December. On the other hand, Cooperman increased his holding by 12% during the same period to a total of 2,070,781 shares. He is now the largest shareholder, followed by David Tepper (Trades, Portfolio) More...

LONG, CHEMICALS


  • Currently 4.50/5

Rating: 4.5/5 (4 votes)

An Advertising Giant Tredding on Solid Ground
As the third largest advertising and marketing company in the world, Interpublic Group of Companies Inc. (IPG) has managed to overcome last decade’s downward slump, in order to resurface as a profitable investment. Changes in the management team, as well as several new growth measures, have not only earned the firm a narrow economic moat rating, but also helped retrieve margins and shareholder returns. So, let’s see what likely motivated investment gurus David Tepper (Trades, Portfolio) and NWQ Managers (Trades, Portfolio) to buy this company’s stock last quarter. More...

ADVERTISING,MARKETING,MCCANN WORLDGROUP,DRAFT FCB GROUP,LOWE WORLDWIDE,MEDIA,PUBLIC RELATIONS


  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

David Tepper Sticks With Airlines, Buys Halliburton, Eastman Chem, Others in Q4 David Tepper - David Tepper Sticks With Airlines, Buys Halliburton, Eastman Chem, Others In Q4
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. More...

  • Currently 3.75/5

Rating: 3.8/5 (4 votes)

Stocks Tend to Outperform Bonds but with Greater Risk
Markets opened higher on Tuesday following a crush on Monday that saw all three major indexes put up at least a 2% loss on the day. Wall Street closed Tuesday with gains: The DJIA closed up 0.47% (advanced 72.44 points, at 15445.24), the S&P 500 closed up 0.76% (advanced 13.31 points, at 1755.20) and the Nasdaq Composite closed up 0.86% (moved up 35.12 points to 4032.08). More...

LONG, BONDS, SPY, INDEX, S&P 500, S&P, CARDILLO, DONALD YACKTMAN, RAY DALIO


  • Currently 4.36/5

Rating: 4.4/5 (11 votes)

A Far-Larger Hospital and a Far-Larger Stock Position
On Dec.23, Larry Robbins added Tenet Healthcare Corp. (THC). It was the third time he added the stock during this month, which makes me feel that he is betting in favor of a positive future for hospitals benefiting from the implementation of the health care reform. More...

LONG, HEALTHCARE, OBAMACARE, THC, ACHC, CYH, HMA


  • Currently 1.00/5

Rating: 1.0/5 (2 votes)

David Tepper - Highest Paid Hedge Fund Manager of 2013
From New York Post: More...

  • Currently 4.00/5

Rating: 4.0/5 (3 votes)

Stocks That Both David Tepper and David Einhorn Own David Tepper,David Einhorn - Stocks That Both David Tepper And David Einhorn Own
Both David Tepper and David Einhorn have been nominated as GuruFocus’ Guru of the Year 2013, so I decided to see which stocks both gurus hold on to and what they had to say about them. The three top stocks held by both are General Motors (GM), Apple (AAPL) and Delphi Automotive PLC (DLPH). More...

  • Currently 4.50/5

Rating: 4.5/5 (10 votes)

David Tepper's 'One Big Play Versus the Market' David Tepper - David Tepper's 'One Big Play Versus The Market'
Evidence of David Tepper’s magic touch has been manifest numerous times over his career. This year in particular, his “one big play versus the market” doubled and tripled, helping propel his firm, Appaloosa Management, to gross returns of more than 40%. The play also happened to be in a sector Warren Buffett loathes. More...

  • Currently 3.00/5

Rating: 3.0/5 (7 votes)

David Tepper’s Low P/E Stocks David Tepper - David Tepper’s Low P/E Stocks
The highest paid hedge fund manager of 2012, David Tepper frequently makes accurate market forecasts. On Nov. 22, he told Bloomberg that the market is not currently in a bubble, using the S&P and Nasdaq forward PD multiple as an indicator. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

True Alpha - Tepper’s Top Yield Stocks in Review David Tepper - True Alpha - Tepper’s Top Yield Stocks In Review
One of the greatest hedge fund investors of all time, David Tepper is the president and founder of hedge fund Appaloosa Management where he has earned a global reputation for producing some of the highest returns ever on Wall Street. Tepper’s windfalls have been made in banking, housing, and power companies, as well as on the bankruptcies of giants like Enron and others. A renowned philanthropist, Tepper has earned the moniker of “the true alpha” investor, claiming fame for a historical record payday of $4 billion in 2009. Tepper personally made $2.2 billion in 2012. As of September 2013, Tepper had a net worth of $7.9 billion, according to Forbes, also naming Tepper as the highest-earning among the top 40 hedge fund managers and traders in 2013. More...

REIT – DIVERSIFIED, COPPER, LEISURE


  • Currently 3.33/5

Rating: 3.3/5 (3 votes)

True Alpha David Tepper Cuts SPY, AAPL, BAC - Sells CMCSA
As of the third quarter, the updated portfolio of David Tepper of Appaloosa Management lists 64 stocks, 5 of them new, a total value at $6.28 billion, and a quarter-over-quarter turnover of 4%. The portfolio is currently weighted with top three sectors: ETF, options, preferred at 21.6%, industrials at 18.6% and financial services at 18.6%. The stocks bought by Tepper averaged a return of 21.01% over 12 months. These are his high-impact sells from the third quarter of 2013: More...

ETF, PAY TV, COMPUTER SYSTEMS, BANKS – REGIONAL - US


  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Bloomberg: Appaloosa's Tepper Says Stock Markets Not in Bubble
Following my previous article: Is this the beginning of a secular bull market?[b] More...

  • Currently 3.53/5

Rating: 3.5/5 (15 votes)

David Tepper: Stock Market Not In Bubble; It's Time To Taper David Tepper - David Tepper: Stock Market Not In Bubble; It's Time To Taper
Appaloosa Management’s David Tepper joined Bloomberg Television’s Stephanie Ruhle this afternoon, live from The Robinhood Foundation Investors Conference. Tepper said U.S. equity markets are not in a bubble, “I know there’s talk about bubbles, this is not one.” Tepper went on to say he is short the bond market and it’s time to start tapering. Additionally, Tepper said: More...

  • Currently 2.40/5

Rating: 2.4/5 (5 votes)

David Tepper’s Top Five Held Stocks David Tepper - David Tepper’s Top Five Held Stocks
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. More...

  • Currently 4.50/5

Rating: 4.5/5 (6 votes)

David Tepper Reports 5 Stock Buys in Q3 David Tepper - David Tepper Reports 5 Stock Buys In Q3
Hedge fund manager David Tepper returned 16.8% in the first half of 2013, bringing his net annualized 20-year return to 28%. His $17 billion hedge fund Appaloosa Management in the third quarter reported that he purchased five new holdings, for a total of 64 stocks in his $6.28 billion portfolio. Tepper has placed 21.6% of his portfolio in ETF, options and preferred stocks as the largest sector represented, followed by 18.6% in industrials and 18.6% in financial services. More...

  • Currently 4.00/5

Rating: 4.0/5 (3 votes)

Tepper’s Two IT Stocks Have the 'It Factor'
Here’s a drill-down on two Internet technology (IT) stocks in David Tepper’s portfolio that are doing well and seem to have the technology “it factor.” NetApp Inc. (NTAP) is a data storage provider that customizes solutions for a wide variety of applications, such as enabling original equipment manufacturers to offer IT and storage solutions that serve specific customer requirements. Check Point Software Technologies Ltd. (CHKP) from Israel is on a global mission to make the Internet secure, also via IT security. More...

DATA STORAGE, SOFTWARE – APPLICATION


  • Currently 3.75/5

Rating: 3.8/5 (4 votes)

Hedge Fund Giant David Tepper Thinks the Fed Can't Taper Any Time Soon
Tepper thinks that the Fed will not taper for a long time to come. He doesn't think that they have a choice. For the next three or four months he thinks government uncertainty will make it hard for markets to fly up, but he does think they will continue to go up because of the tapering. With respect to the government debt, he thinks Congress needs to pass something that permanently resolves that the U.S. debt will be paid under all circumstances. More...

Add Notes, Comments or Ask Questions

User Comments

No comment yet

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide