David Tepper

David Tepper

Last Update: 08-14-2018

Number of Stocks: 48
Number of New Stocks: 6

Total Value: $8,700 Mil
Q/Q Turnover: 9%

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 (%)
20142.2813.47-11.2
201342.3632.310.1
201229.2915.9913.3
3-Year Cumulative88.3 (23.5%/year)74.1 (20.3%/year)14.2 (3.2%/year)
2011-3.531.9-5.4
20102215.056.9
5-Year Cumulative121.6 (17.2%/year)104.1 (15.3%/year)17.5 (1.9%/year)
2009132.7226.35106.4
2008-26.72-36.7910.1
20078.885.143.7
200625.8615.8510.0
200520.554.8315.7
10-Year Cumulative524.2 (20.1%/year)108.2 (7.6%/year)416 (12.5%/year)
200433.8110.723.1
2003148.8228.19120.6
2002-24.8-21.58-3.2
200166.75-11.7678.5
20000.04-9.759.8
15-Year Cumulative2507 (24.3%/year)84.5 (4.2%/year)2422.5 (20.1%/year)
199960.8920.440.5
1998-29.1928.7-57.9
199729.5433.47-3.9
199678.4622.4956.0
199542.0638.044.0
20-Year Cumulative9654.1 (25.7%/year)545.2 (9.8%/year)9108.9 (15.9%/year)
199419.030.418.6
199357.6210.0847.5

Top Ranked Articles

David Tepper's Little-Known Conviction Picks Fans of the rock star investor are familiar with his stakes in Facebook, Micron and Allergan. But what about a few other notable performers?
After taking a look at his portfolio of 52 stocks, hedge fund manager David Tepper (Trades, Portfolio) isn’t shy about where his loyalties lie. Read more...
The Investing Gurus Losing Money on Facebook Some of the world's most noted funds holding Facebook as it battles with a crisis
Some of the world’s most noted funds are losing money on Facebook (NASDAQ:FB) as the company battles with a crisis over how it handled users’ data. Read more...
A Guru's Uncommon Holdings These stocks aren't widespread in David Tepper's portfolio. He doesn't have too many stocks near 52-week lows
David Tepper (Trades, Portfolio) doesn’t have a wide variety of low-hitting stocks in his $10 billion portfolio of 52 stocks. But these, at a cost of under $30 a share, are worth a look by investors. Read more...
David Tepper and Corporate Debt Like most value investors, he prefers companies with little or no debt
In 2017, I wrote an article with this title: “David Tepper Takes Big Risks for Big Rewards.” Read more...
David Tepper Picks Up 6 Stocks in 2nd Quarter Guru’s largest new position is KeyCorp
Appaloosa Management’s David Tepper (Trades, Portfolio) released his second-quarter portfolio this week, listing six new positions. 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)

Tech Became Hedge Funds' Most-Hated Sector Last Quarter Facebook, Microsoft among the stocks most sold by hedge funds Steve Madel, David Tepper, Daniel Loeb, Leon Coope - Tech Became Hedge Funds' Most-Hated Sector Last Quarter
Earlier this week, I covered the most-loved stocks by hedge funds in the second quarter of 2018, according to 13F filings. The filings, which are submitted to the Securities and Exchange Commission within 45 days after the end of each calendar quarter, detail equity positions of hedge funds with more than $100 million in assets under management. Since they are backward-looking, they are useless for trading but do provide a fascinating insight into what hedge fund managers are doing. They exclude cash and credit positions. More...

GURUS, HEDGE FUNDS, INVESTING, VALUE INVESTING, VALUE


  • Currently 4.50/5

Rating: 4.5/5 (2 votes)

David Tepper Picks Up 6 Stocks in 2nd Quarter Guru’s largest new position is KeyCorp David Tepper - David Tepper Picks Up 6 Stocks In 2nd Quarter
Appaloosa Management’s David Tepper (Trades, Portfolio) released his second-quarter portfolio this week, listing six new positions. More...

DAVID TEPPER, APPALOOSA, 2Q, BUYS


  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

The Case for Facebook Overlook Zuckerberg selling $340 million worth of stock in the last two months and focus on the long term David Tepper, Andreas Halvorsen, Lee Ainslie, Fran - The Case For Facebook
In the months since Facebook Inc.'s (NASDAQ:FB) privacy issues came to light, there have been numerous discussions about the fall of the social media giant, with one commentator even calling it AOL 2.0. More...

SOCIAL MEDIA, TECHNOLOGY, FACEBOOK, GOOGLE, ADVERTISING,


  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

David Tepper, Andreas Halvorsen Hit by Facebook Plunge Facebook also the most-bought stock of investors GuruFocus tracks David Tepper,Andreas Halvorsen - David Tepper, Andreas Halvorsen Hit By Facebook Plunge
Facebook (NASDAQ:FB)’s historic plunge has erased a reported $16 billion from CEO Mark Zuckerberg’s fortune this week, but it has not been kind to several hedge fund managers either. More...

david tepper, andreas halvorsen, facebook, plunge, second-quarter, buy, sell, largest shareholders


  • Currently 3.50/5

Rating: 3.5/5 (2 votes)

Micron Technology Is Still a Massive Bargain The chipmaker is David Tepper's top holding David Tepper - Micron Technology Is Still A Massive Bargain
Since the beginning of 2016, Micron Technology Inc. (NASDAQ:MU) has risen more than 275% on the back of explosive growth in revenue and net income. More...

MEMORY, STORAGE, TECHNOLOGY, MICRON


  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

A Look at Tepper's Bigger Stakes in Casino Stocks Patient investors may want to look at the slow-growth stock of a casino operator that markets to middle-income customers. David Tepper's casinos have operating margins better than 70% of peers David Tepper - A Look At Tepper's Bigger Stakes In Casino Stocks
A small corner of David Tepper (Trades, Portfolio)’s hedge fund holdings came under scrutiny several weeks ago when the guru took a particular interest in a professional sports franchise. He's been known to like American football. After all, doesn't this Pittsburgh-bred guru hold a minority interest in his hometown team, the Pittsburgh Steelers? More...

CASINO, GAMBLING, GAMES, HOTELS, DIVIDENDS, LAWSUIT, MASSACRE, TRAGEDY, LAS VEGAS, ATLANTIC CITY


  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

3 Stocks Warren Buffett and David Tepper Both Own A top-performing guru and the 'Oracle of Omaha' agree on one airline and two banks Warren Buffett, David Tepper - 3 Stocks Warren Buffett And David Tepper Both Own
Warren Buffett (Trades, Portfolio) and David Tepper (Trades, Portfolio), two investing titans that have outperformed the markets since inception, think alike on three companies: United Continental Holdings Inc. (NYSE:UAL), Bank of America Corp. (NYSE:BAC) and Wells Fargo & Co. (NYSE:WFC). More...

WARREN BUFFETT, DAVID TEPPER, AIRLINES


  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Investment Advice From David Tepper How David Tepper made billions by investing in junk debt David Tepper - Investment Advice From David Tepper
In the hedge fund world, David Tepper (Trades, Portfolio) often gets overlooked because he tries to keep a low profile. But that does not mean you should ignore this champion investor. More...

VALUE, VALUE INVESTING, DAVID TEPPER


  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

A Guru's Uncommon Holdings These stocks aren't widespread in David Tepper's portfolio. He doesn't have too many stocks near 52-week lows David Tepper - A Guru's Uncommon Holdings
David Tepper (Trades, Portfolio) doesn’t have a wide variety of low-hitting stocks in his $10 billion portfolio of 52 stocks. But these, at a cost of under $30 a share, are worth a look by investors. More...

ENTERTAINMENT, CASINO, BANK, SWITZERLAND, DEBT, DIVIDENDS,


  • Currently 5.00/5

Rating: 5.0/5 (4 votes)

David Tepper's Little-Known Conviction Picks Fans of the rock star investor are familiar with his stakes in Facebook, Micron and Allergan. But what about a few other notable performers? David Tepper - David Tepper's Little-Known Conviction Picks
After taking a look at his portfolio of 52 stocks, hedge fund manager David Tepper (Trades, Portfolio) isn’t shy about where his loyalties lie. More...

ENERGY, SOCIAL MEDIA, SOFTWARE, BOTOX, EARNINGS, TECHNOLOGY DOLLAR, MEDIAN PRICE-SALES, HISTORICAL, GAINS


  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

David Tepper and Corporate Debt Like most value investors, he prefers companies with little or no debt David Tepper - David Tepper And Corporate Debt
In 2017, I wrote an article with this title: “David Tepper Takes Big Risks for Big Rewards.” More...

DAVID TEPPER, APPALOOSA MANAGEMENT, DEBT, EQUITY, RISK, REWARD, MICRON, FACEBOOK, ALIBABA, ALLERGAN, ALTABA, ALPHABET, GOOGLE, BANK OF AMERICA, LAM RESEARCH, T-MOBILE XPO LOGISTICS, DEBT TO EQUITY, IN


  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Facebook Dominates Gurus' Portfolios in 1st Quarter Gurus snapped up shares of Facebook in the first quarter David Tepper,Glenn Greenberg - Facebook Dominates Gurus' Portfolios In 1st Quarter
Facebook (NASDAQ:FB)'s reputation might have taken a hit following its data and security scandal at the end of March, but it seems as if Wall Street believes the social media giant still have what it takes to remain on top of the tech world. More...

GURUS, FACEBOOK, HEDGE FUNDS


  • Currently 4.50/5

Rating: 4.5/5 (2 votes)

David Tepper Ousts Apple, Buys Buffett Favorite Wells Fargo Despite Apple sale, investor likes tech David Tepper - David Tepper Ousts Apple, Buys Buffett Favorite Wells Fargo
Billionaire David Tepper (Trades, Portfolio), one of the world’s most successful investors, announced Tuesday evening that he sold his stake in Apple (NASDAQ:AAPL) and picked up shares of Wells Fargo (NYSE:WFC) and UBS (NYSE:UBS), along with several semiconductor positions in the first quarter. More...

  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

The Investing Gurus Losing Money on Facebook Some of the world's most noted funds holding Facebook as it battles with a crisis David Tepper - The Investing Gurus Losing Money On Facebook
Some of the world’s most noted funds are losing money on Facebook (NASDAQ:FB) as the company battles with a crisis over how it handled users’ data. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

8 Stocks David Tepper Continues to Buy The guru added to these positions in the past 2 quarters David Tepper - 8 Stocks David Tepper Continues To Buy
David Tepper (TradesPortfolio) is the founder of Appaloosa Management. He invested in the following More...

  • Currently 4.00/5

Rating: 4.0/5 (1 vote)

Should You Follow Seth Klarman and David Tepper Into Allergan? These two value investors have been buying the pharmaceutical company, but is it the right decision? Seth Klarman, David Tepper, Wallace Weitz - Should You Follow Seth Klarman And David Tepper Into Allergan?
Over the past several weeks, the world's best value investors have been filing 13Fs with the SEC, which detail positions held by their respective funds. These reports only contain equity holdings and are backward-looking, so they are not a complete picture of what all these investors own. Regardless, they are still a fascinating insight into what some of the best value investors in the world currently like. More...

ALLERGAN, VALUE, VALUE INVESTING, SETH KLARMAN, DAVID TEPPER


  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

David Tepper Fuels Buffett’s Apple in 4th Quarter Guru expands five existing positions David Tepper, Warren Buffett - David Tepper Fuels Buffett’s Apple In 4th Quarter
Appaloosa Management founder David Tepper (Trades, Portfolio) disclosed on Thursday the expanded his positions in five companies during fourth-quarter 2017: PowerShares QQQ Trust Series 1 (NASDAQ:QQQ), Apple Inc. (NASDAQ:AAPL), Micron Technology Inc. (NASDAQ:MU), Facebook Inc. (NASDAQ:FB) and Bank of America Corp. (NYSE:BAC). More...

DAVID TEPPER, WARREN BUFFETT


  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Alan Fournier: Building on the Lessons of David Tepper After the guru was pushed out of the Appaloosa nest by Tepper, he went on to turn that lemon into lemonade Alan Fournier, David Tepper, Richard Pzena, Michae - Alan Fournier: Building On The Lessons Of David Tepper
More...

ALAN FOURNIER, HEDGE FUND, PENNANT CAPITAL MANAGEMENT, DAVID TEPPER, APPALOOSA MANAGEMENT, RICHARD PZENA, SANFORD C. BERNSTEIN, JOHN NEFF, MICHAEL PRICE, PENNANT MASTER FUND, PENNANT WINDWARD, BROADWA


  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

David Tepper: Market Almost as Cheap as Last Year Market guru speaks to CNBC in phone interview David Tepper - David Tepper: Market Almost As Cheap As Last Year
David Tepper (Trades, Portfolio) told CNBC’s Fast Money Halftime Report on Thursday the market is almost as cheap as last year. More...

  • Currently 4.50/5

Rating: 4.5/5 (2 votes)

David Tepper Starts 3 Positions in 3rd Quarter Guru invests in Peabody Energy, Applied Materials and XPO Logistics David Tepper - David Tepper Starts 3 Positions In 3rd Quarter
Appaloosa Management founder David Tepper (Trades, Portfolio) disclosed he established positions in three stocks in the third quarter. More...

TEPPER, APPALOOSA, BUYS, 3Q


Add Notes, Comments

If you want to ask a question or report a bug, please create a support ticket.

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)

GF Chat

{{numOfNotice}}
FEEDBACK