David Tepper

David Tepper

Last Update: 02-12-2016

Number of Stocks: 52
Number of New Stocks: 24

Total Value: $5,014 Mil
Q/Q Turnover: 39%

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 (%)
20142.2813.69-11.4
201342.3632.3910.0
201229.291613.3
3-Year Cumulative88.3 (23.5%/year)74.6 (20.4%/year)13.7 (3.1%/year)
2011-3.532.11-5.6
20102215.066.9
5-Year Cumulative121.6 (17.2%/year)105.1 (15.5%/year)16.5 (1.7%/year)
2009132.7226.46106.3
2008-26.72-3710.3
20078.885.493.4
200625.8615.7910.1
200520.554.9115.6
10-Year Cumulative524.2 (20.1%/year)109.4 (7.7%/year)414.8 (12.4%/year)
200433.8110.8822.9
2003148.8228.68120.1
2002-24.8-22.1-2.7
200166.75-11.8978.6
20000.04-9.19.1
15-Year Cumulative2507 (24.3%/year)86.4 (4.2%/year)2420.6 (20.1%/year)
199960.8921.0439.8
1998-29.1928.58-57.8
199729.5433.36-3.8
199678.4622.9655.5
199542.0637.584.5
20-Year Cumulative9654.1 (25.7%/year)554.6 (9.8%/year)9099.5 (15.9%/year)
199419.031.3217.7
199357.6210.0847.5

Top Ranked Articles

David Tepper Profits on TerraForm Stake After SunEdison Files Bankruptcy TerraForm said the bankruptcy of its sponsor company SunEdison won't impact its business
After a brutal six months, David Tepper (Trades, Portfolio)’s 11% stake in Terraform Power Inc. is swinging to a profit after it issued a statement Thursday that the bankruptcy of SunEdison (SUNE), its sponsor company, would not materially impact its business. Read more...
Einhorn Sells 75% of SunEdison Stake for Mere Pennies Solar company's ongoing troubles have brought stock down to 32 cents
In an updated filing, David Einhorn (Trades, Portfolio)’s Greenlight Capital reported cutting its stake in SunEdison (SUNE) by 75% April 15, selling more than 15.8 million shares. Greenlight is left with a little over 5 million shares in the solar energy company. Read more...
These 10 Principles Will Help You Beat the Market A value investor's insights
Vijay Kedia is a famous Indian value investor who has over 20 years of experience in the market. Vijay in Hindi means "victory." In 20 years he turned an investment of $20,000 into $100 million net worth today. Read more...
David Tepper Wants to Clean Up TerraForm Power TerraForm CEO, who is also SunEdison's CFO, should be replaced
David Tepper (TradesPortfolio) and Appaloosa Management have said through an amended lawsuit that several TerraForm Power (NASDAQ:TERP) directors and SunEdison (SUNE) have dismantled TerraForm’s corporate governance and conflicts committee and replaced it with a “sham committee” so SunEdison could take advantage of TerraForm and its stockholders. Read more...
Stocks Trading Below Peter Lynch Earnings Line Delta Air Lines and Union Pacific look cheap at their current prices
According to GuruFocus' All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair value is far above the current price. The following stocks are trading with a wide margin of safety and at least five gurus are shareholders. 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

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David Tepper Profits on TerraForm Stake After SunEdison Files Bankruptcy TerraForm said the bankruptcy of its sponsor company SunEdison won't impact its business David Tepper - David Tepper Profits On TerraForm Stake After SunEdison Files Bankruptcy
After a brutal six months, David Tepper (Trades, Portfolio)’s 11% stake in Terraform Power Inc. is swinging to a profit after it issued a statement Thursday that the bankruptcy of SunEdison (SUNE), its sponsor company, would not materially impact its business. More...

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Southwest Airlines Is a Long-Term Buy Airline expanded internationally with acquisition of AirTran David Tepper, David Dreman, Lee Ainslie - Southwest Airlines Is A Long-Term Buy
Southwest Airlines Co. (NYSE:LUV), a $30.07 billion market cap company, is a major passenger airline that provides scheduled air transportation in the U.S. The firm operates in almost 100 destinations across the U.S. Since 1967, Southwest Airlines has expanded inside and outside the U.S. For example, the acquisition of AirTran is a case of international expansion. More...

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Einhorn Sells 75% of SunEdison Stake for Mere Pennies Solar company's ongoing troubles have brought stock down to 32 cents David Einhorn,David Tepper - Einhorn Sells 75% Of SunEdison Stake For Mere Pennies
In an updated filing, David Einhorn (Trades, Portfolio)’s Greenlight Capital reported cutting its stake in SunEdison (SUNE) by 75% April 15, selling more than 15.8 million shares. Greenlight is left with a little over 5 million shares in the solar energy company. More...

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Rating: 5.0/5 (6 votes)

These 10 Principles Will Help You Beat the Market A value investor's insights Warren Buffett,David Tepper,Howard Marks,Mohnish P - These 10 Principles Will Help You Beat The Market
Vijay Kedia is a famous Indian value investor who has over 20 years of experience in the market. Vijay in Hindi means "victory." In 20 years he turned an investment of $20,000 into $100 million net worth today. More...

VIJAY KEDIA, WARREN BUFFETT, MOHNISH PABRAI,CHARLIE MUNGER,HOWARD MARKS


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David Tepper Wants to Clean Up TerraForm Power TerraForm CEO, who is also SunEdison's CFO, should be replaced David Tepper, David Einhorn - David Tepper Wants To Clean Up TerraForm Power
David Tepper (TradesPortfolio) and Appaloosa Management have said through an amended lawsuit that several TerraForm Power (NASDAQ:TERP) directors and SunEdison (SUNE) have dismantled TerraForm’s corporate governance and conflicts committee and replaced it with a “sham committee” so SunEdison could take advantage of TerraForm and its stockholders. More...

LONG, ENERGY, SOLAR


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Is SunEdison Out of Trouble Now? Despite the recent positives, SunEdison isn't a stock I would recommend David Tepper - Is SunEdison Out Of Trouble Now?
SunEdison (SUNE) has been a volatile stock to hold over the last few months. More...

SHORT


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Stocks Trading Below Peter Lynch Earnings Line Delta Air Lines and Union Pacific look cheap at their current prices David Tepper, George Soros, Larry Robbins, Sarah K - Stocks Trading Below Peter Lynch Earnings Line
According to GuruFocus' All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair value is far above the current price. The following stocks are trading with a wide margin of safety and at least five gurus are shareholders. More...

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Industrial Stock United Rental May Hit $100 in 3 Years Company held by David Tepper has a decent risk reward offer David Tepper - Industrial Stock United Rental May Hit $100 In 3 Years
United Rentals Inc. (NYSE:URI) offers equipment for rent to construction and industrial companies, manufacturers, utilities, municipalities, homeowners, government entities but mostly big machinery. The company has over 880 facilities and stores across the U.S. and Canada. More...

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Why SunEdison May Go Bankrupt Given the high cash burn rate and bad business model, SunEdison has an uncertain future David Tepper - Why SunEdison May Go Bankrupt
While there’s no denying that the solar industry will continue growing in the future, many stocks in the sector have a bad business model and terrible management and should be avoided. One such stock is SunEdison (SUNE), which is down about 72% this year and has been pretty volatile for the past few months. With SunEdison near 52-week lows, I don’t think investors should be tempted into buying the stock on the hopes of a recovery. More...

SHORT


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Why I Am Not Buying Kinder Morgan There are a few things potential investors should consider Warren Buffett,David Tepper,George Soros,Glenn Gre - Why I Am Not Buying Kinder Morgan
A Wall Street Journal article titled, “Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) Sells AT&T Shares, Buys Into Kinder Morgan” was published late afternoon Feb. 16. Any eager value investor who lacks time to assess Kinder Morgan (NYSE:KMI) would be tempted to place an off-hours order in order to join Buffett in this "value" purchase. More...

VALUE INVESTING


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Goodyear Tire Among Companies Trading With Very Low PE Stocks trading with a PE below 2 and a wide margin of safety Diamond Hill Capital, David Tepper, Scott Black, L - Goodyear Tire Among Companies Trading With Very Low PE
The following are companies with high and growing dividend yields that gurus are buying according to GuruFocus' All-in-One Screener. More...

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It’s About Time: Smart Money Finally Nibbling at Pipeline MLPs Gurus are buying into piplines Warren Buffett,David Tepper - It’s About Time: Smart Money Finally Nibbling At Pipeline MLPs
Midstream oil and gas pipeline MLPs have been just about the most despised asset class in recent memory. Yes they just got a major shot in the arm from two legendary investors,Warren Buffett (Trades, Portfolio) and David Tepper (Trades, Portfolio). More...

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Gap, Qualcomm Are High-Yield Stocks Gurus Are Buying These strong companies are held by six or more gurus David Tepper, Steven Cohen, Bill Nygren, Edward La - Gap, Qualcomm Are High-Yield Stocks Gurus Are Buying
The following are companies with high and growing dividend yields that gurus are buying according to GuruFocus' All-in-One Screener. More...

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Rating: 4.3/5 (3 votes)

More Than a Third of David Tepper's New Buys Come From Energy Sector Tepper starts 24 new positions David Tepper - More Than A Third Of David Tepper's New Buys Come From Energy Sector
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. More...

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CF Industries Among Stocks Trading Below Peter Lynch Value Undervalued stocks that are popular with the gurus Kyle Bass, David Tepper, Mario Gabelli, Martin Whi - CF Industries Among Stocks Trading Below Peter Lynch Value
According to GuruFocus' All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair value is far above the current price. The following stocks are trading with a wide margin of safety, and at least five gurus are shareholders. More...

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Guru Stocks That Have Outperformed S&P 500 JetBlue Airways has returned 31% over the past year David Tepper, Joel Greenblatt,John Paulson, George - Guru Stocks That Have Outperformed S&P 500
The following are some of the stocks that outperformed the S&P 500 Index over the last 12 months and have been bought by gurus during the last quarter. More...

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David Einhorn May Push for SunEdison Sale Einhorn taking active position as Greenlight Capital gains board seat David Einhorn, David Tepper - David Einhorn May Push For SunEdison Sale
SunEdison (SUNE) is an important position for David Einhorn (Trades, Portfolio) with a 6.8% stake (4% through Greenlight Capital). SunEdison does everything from development and finances, up to installment and operation of solar power plants. It is one of the largest renewable energy companies in the world (market cap of nearly $1 billion) and is headquartered in the U.S. More...

LONG, ENERGY


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Auto Stocks Struggle Despite Strong Sales How the gurus are responding to declining prices David Tepper, David Herro - Auto Stocks Struggle Despite Strong Sales
Despite record car sales over the past year, Wall Street is seeing auto stocks tank due to factors such as rising interest rates and the struggling Chinese economy, which is the largest market for automobiles. More...

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Gurus Are Buying These Stocks Trading Below Peter Lynch value Goodyear Tire and Micron are undervalued by about 70% David Tepper, David Einhorn, Leon Cooperman, Steve - Gurus Are Buying These Stocks Trading Below Peter Lynch Value
According to GuruFocus' All-in-One Screener, the following are the stocks that are trading below the Peter Lynch value, and which more than five hedge fund gurus have in their portfolios. More...

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TerraForm Power Rebuffs Tepper's Demand to See Corporate Books Appaloosa hasn't given a good reason to see records, letter says David Tepper - TerraForm Power Rebuffs Tepper's Demand To See Corporate Books
December 31, 2015 +1 212.937.7220 (t) More...

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