David Tepper

David Tepper

Last Update: 05-15-2015

Number of Stocks: 38
Number of New Stocks: 9

Total Value: $5,702 Mil
Q/Q Turnover: 12%

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)
20078.885.493.4
200625.8615.7910.1
5-Year Cumulative185.1 (23.3%/year)12 (2.3%/year)173.1 (21%/year)
200520.554.9115.6
200433.8110.8822.9
2003148.8228.68120.1
2002-24.8-22.1-2.7
200166.75-11.8978.6
10-Year Cumulative1335 (30.5%/year)15 (1.4%/year)1320 (29.1%/year)
20000.04-9.19.1
199960.8921.0439.8
1998-29.1928.58-57.8
199729.5433.36-3.8
199678.4622.9655.5
15-Year Cumulative3680.8 (27.4%/year)166.9 (6.8%/year)3513.9 (20.6%/year)
199542.0637.584.5
199419.031.3217.7
199357.6210.0847.5

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 4.00/5

Rating: 4.0/5 (1 vote)

Why GM Is A Buy David Tepper,David Einhorn,Kyle Bass,Warren Buffet - Why GM Is A Buy
It has been a few years since General Motors Company (NYSE:GM) resurected from the ashes of its former incarnations bankruptcy. It is still the leading automaker in the States and slowly U.S. taxpayers are forgiving the company its previous mistakes. In October 2010 the automaker integrated AmeriCredit to continue to offer credit to customers. Currently, Fiat Chrysler Automobiles CEO Sergio Marchionne is pursuing GM to merge with the Italian automaker. Sergio Marchionne has a reputation as a briliant manager who is highly skilled at creating shareholder value. His arguments are laid out in a presentation called Confessions of a Capital Junkie. His main point is that automakers are achieving RoIC below their average cost of capital. Long term that is a huge problem, and he thinks the solution lies in a few mega companies. By his estimates a combination of Fiat with another major automaker would result in between $2.8 billion to $5 billion in benefits per year. Fiat and GM’s combined Ebitda is around $19 billion, so that More...

AUTO, AUTOMAKERS, CYCLICAL,


  • Currently 3.00/5

Rating: 3.0/5 (2 votes)

Micron May Be the Biggest Guru Bargain Of All
Micron Technology (NASDAQ:MU) was founded in Boise, Idaho and manufacturers and markets a basic commodity for the computer industry – DRAM, NAND Flash memory, CMOS image sensors, along with other semiconductor components. was founded in Boise, Idaho and incorporated in October 1978. More...

EINHORN, TEPPER, GREENBLATT, KLARMAN, STORAGE, MEMORY, SSD, DRAM


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5 Popular Financial Stocks Among Gurus in Q1 Joel Greenblatt,David Tepper,Larry Robbins,Bill Ny - 5 Popular Financial Stocks Among Gurus In Q1
The financial sector has seen good performance over the past year, returning 20.78%. This is the third-highest performing sector over the one-year period after healthcare and technology, according to Morningstar’s performance list. More...

FINANCIAL, BANK OF AMERICA, CITIGROUP, BERKSHIRE HATHAWAY, AIG, BANK OF NEW YORK MELLON


  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

David Tepper's Top 5 First-Quarter Stock Buys David Tepper - David Tepper's Top 5 First-Quarter Stock Buys
David Tepper (Trades, Portfolio)’s Appaloosa Management has about $20 billion in assets under management and a portfolio with 38 long positions valued at $5.7 billion. The top sectors they have invested in are Consumer Cyclical at 25.6% and ETFs at 24.6%. More...

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Analyzing David Tepper's Top Holdings
David Tepper (Trades, Portfolio) is the founder of Appaloosa Management, which is a $3 billion hedge fund investment firm based in Chatham, N.J. Tepper has earned an international reputation for producing some of the highest returns among fund managers on Wall Street. In addition to investments, he is also interested in philanthropy. He donated $55 million to the Graduate School of Industrial Administration of Carnegie Mellon University. The gift is the largest donation to Carnegie Mellon University in its 104-year history. More...

LONG, CONSUMERS


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Rating: 4.0/5 (3 votes)

David Tepper’s Low P/E Stocks David Tepper - David Tepper’s Low P/E Stocks
It was widely reported last month that hedge fund manager David Tepper (Trades, Portfolio) shed a sizable portion of his portfolio in the fourth quarter, exiting 15 positions completely and reducing 23. His $20 billion Appaloosa Management also ended the year up 30%. More...

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Other Highly Concentrated Fund´s Portfolio
Over the past days hedge funds have been filing their form 13-F, which is a quarterly report of equity holdings by filed institutional investment managers with at least $100 million in equity assets under management, as required by the United States Securities and Exchange Commission (SEC). In this article, let´s concentrate in one particular hedge fund and try to see the principal holdings in its portfolio. I will look into David Tepper (Trades, Portfolio)´s Appaloosa Management LP. More...

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Rating: 4.7/5 (7 votes)

Google's Undervaluation: Forget About Moon Shots, Focus On EBITDA Bill Nygren,David Tepper - Google's Undervaluation: Forget About Moon Shots, Focus On EBITDA
I hate to invest in large caps. It's my belief a dollar buys a lot more in the nano cap store. I'll keep shopping there as long as I can. Google (GOOG) (GOOGL) is one of only three large caps in my portfolio which is diversified across ~50 holdings. For me to venture into large cap territory, I must really like the investment. I do love Google at the $547 level. So much so that Google is my largest position. More...

TECH, SEARCH, ADVERTISING, Google


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Rating: 4.0/5 (1 vote)

Appaloosa's David Tepper Buys American Realty Capital, Sells Citigroup, Halliburton, Mohawk and Almost Everything Else
Daivd Tepper is probably the best performing hedge fund manager of the last decade. His timing has been perfect. He bet the farm into financial stocks in 2009 as they were beaten down, and made multiple billions almost every year since. But now he is selling out a lot of positions. Does he see something that others don’t? More...

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Guru David Tepper Adds One Company to Portfolio in Fourth Quarter David Tepper, DODGE & COX, GLOBAL VALUE, MANNING & - Guru David Tepper Adds One Company To Portfolio In Fourth Quarter
Hedge fund manager and founder of Appaloosa Management David Tepper (Trades, Portfolio) has built a reputation over the years for investing in distressed companies. More...

REAL ESTATE, STOCK, DIVEST, FACEBOOK, SOCIAL MEDIA


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David Tepper: Sells Out Of Facebook and Alibaba
David Tepper of Appaloosa Management has released its Fourth Quarter 13F filing has cut his entire positions in Alibaba (NYSE:BABA) and Facebook (NASDAQ:FB). Appaloosa Management disclosed that the value of its equity holdings were reduced by 40% last year, mainly caused by the firm closing out and even reducing many of its stock holdings. The market value of the firms portfolio was $4.05 billion as of December 31, down from $6.79 billion at the end of September according to its 13f filing. During the fourth quarter Appaloosa sold out all of its 1.16 million shares in Apple (AAPL) that the firm held at the end of September 30, 2014. The Hedge fund also sold out of its entire 7.3 million share stake in Facebook, its 8.3 million share stake in Citigroup (NYSE:C), its 725,000 share stake in Alibaba (NYSE:BABA), its 2.86 million share stake in CBS Corp (NYSE:CBS), its 5 million share stake in Halliburton (NYSE:HAL). Also the fund reduced its holdings in American Air (NASDAQ:AAL) to 4.36 million shares from 7.29 million shares and its also reduced its holdings in Delta (NYSE:DAL) More...

DAVID TEPPER,BILLIONAIRE,HEDGE FUND,MANAGER,LONG-TERM,FACEBOOK,ALIBABA,


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Rating: 5.0/5 (3 votes)

Why I’m Bullish on Auto Stocks David Tepper,Jeremy Grantham - Why I’m Bullish On Auto Stocks
December was a solid month for American automakers. General Motors Company (GM)had its best December sales month since 2007, with sales up 19.3% over last year. Full-year sales were up a respectable 5.3%. Ford Motor Company (F) had its best December since 2005, though its full-year growth numbers were actually down slightly due to, among other things, retooling to make way for its new aluminum-body F-150. More...

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David Tepper's Top Stock Holdings in His Favorite Sector David Tepper - David Tepper's Top Stock Holdings In His Favorite Sector
David Tepper (Trades, Portfolio) believes 2015 could play out like 1999 as both years were preceded by trouble in Russia and “worldwide money” that was “made too easy for where USA fundamentals were in both late 1998 and 2014,” he told CNBC on Wednesday. More...

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Seth Klarman Keeps Buying LNG, KERX, PBF And Keeps Selling THRX
Seth Klarman (Trades, Portfolio) is an investor from America who founded the Baupost Group. The Baupost Goup is a private investment partnership and hedge fund. The Baupost Group has made over 20% annualized gains over the past three decades. Seth Klarman (Trades, Portfolio) is known for being the author of a book on value investing called Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor. More...

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David Tepper's Top 4 Holdings: GM, C, PCLN and HCA
David Tepper (Trades, Portfolio)'s Top 4 Holdings: GM, C, PCLN, and HCA More...

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David Tepper Buys 4 New Stocks in Q3 David Tepper - David Tepper Buys 4 New Stocks In Q3
David Tepper (Trades, Portfolio), founder of $20 billion Appaloosa Management and the highest paid hedge fund manager last year, More...

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George Soros: Europe Needs More Stimulus
George Soros (Trades, Portfolio) is concerned about the European economy. He believes that monetary policy alone won't be enough and that fiscal stimulus will be necessary. More...

David Tepper, George Soros, Video


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Tepper: Stocks Interesting, Junk Bonds at Fair Value David Tepper,Fairholme Fund,Kyle Bass - Tepper: Stocks Interesting, Junk Bonds At Fair Value
More...

DAVID TEPPER


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David Tepper on the Bond Market, the U.S. Stock Market, and Bill Gross David Tepper - David Tepper On The Bond Market, The U.S. Stock Market, And Bill Gross
David Tepper (Trades, Portfolio), co-founder of Appaloosa Management, spoke with Bloomberg TV's Stephanie Ruhle and Erik Schatzker on "Market Makers" today about a wide variety of subjects, including the bond market, the U.S. stock market, Bill Gross' departure from PIMCO and Roger Goodell. Appearing alongside Tepper for the interview was David Saltzman, executive director of the Robin Hood Foundation. More...

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‘Nervous’ David Tepper’s New Top Holding David Tepper - ‘Nervous’ David Tepper’s New Top Holding
David Tepper (Trades, Portfolio), leader of the $20 billion hedge fund Appaloosa Management, told Bloomberg today after the European Central Bank announced it would cut interest rates: “It’s the beginning of the end of the bond market rally. We’re done.” More...

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User Comments

Old_water_dude@yahoo
ReplyOld_water_dude@yahoo - 6 months ago
The US Pipe retiree's are slowly passing away without Health insurance that they earned. Tepper and his buddies took it from them and gave it to the rich so they can party in the hamptons.
I don't think God will forgive them, as this blasphemy, reckless human rights violation, continues.
Old_water_dude@yahoo
ReplyOld_water_dude@yahoo - 7 months ago
Finally sold out your MWA position. Not before the US Pipe retiree's has their hard earned health insurance cancelled by MWA, US Pipe, and Wynchurch. The perfect switch, hide the blame, grab the candy, except these people worked their entire lives for their hard earned health insurance. Tepper didn't work squat. Makes me sick to see such sly of hand movements stealing from the retirees of US Pipe. What kind of sick six sigma experts does dastardly deeds such as this?
Old_water_dude@yahoo
ReplyOld_water_dude@yahoo - 7 months ago
This his way to be compassionate, even the rich love the other rich. What about the poor US Pipe retirees who worked for 30 years for their hard earned health insurance only to have it cancelled when it was sold by Tepper and his buddies? Taking from the US Pipe Retirees health insurance to give to the rich is not a Robin Hood moment. Not a knight of the round table, more like a knight of the morons. The queen will not make Tepper a KBE.
More
UVInvestors
ReplyUVInvestors - 7 months ago
A.madi27@google,
they don't monitor the comments section. you have to submit a ticket under "contact us"
Mocheng
ReplyMocheng - 1 year ago
Jcsepulveda, Not from this site, but you might be able to using SEC Edgar search.
Old_water_dude@yahoo
ReplyOld_water_dude@yahoo - 1 year ago
Tepper has a record of plundering health insurance retirement accounts for Retirees at US Pipe. Selling US Pipe to the Chicago Wynchurch gang , and canceling the health insurance of retirees is not success, it is the tip of the iceberg of evil. The hedge funds are the problem, the most massive assault on human freedom is occurring under the name of hedge funds, absolute epic in history, as the loss of human freedom and dignity by the hedge fund gangs sweeps over the land as a dark cloud of ignorance and fear.
Jcsepulveda
ReplyJcsepulveda - 1 year ago
Is there any way to know how much cash position they are holding?
A.madi27@google
ReplyA.madi27@google - 1 year ago
Please make sure you update the "Share # Change from Last Period". the numbers shown are still the ones from Q4 2013. Thanks.

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