David Tepper (Trades, Portfolio), founder of Appaloosa LP, disclosed in a regulatory filing his firm’s top trades during the third quarter included the closure of its positions in Kohl’s Corp. (KSS, Financial), Occidental Petroleum Corp. (OXY, Financial), Micron Technology Inc. (MU, Financial), Aptiv PLC (APTV, Financial), Netflix Inc. (NFLX, Financial) and PG&E Corp. (PCG, Financial).
A distressed-debt specialist, Tepper initially became interested in stock markets by watching his father trade stocks. The guru has earned reputation for producing high returns among Wall Street investors.
Tepper converted his Appaloosa hedge fund into a family office in 2019. As of September, the firm’s $1.59 billion 13F equity portfolio contains 30 stocks with eight new positions and a quarterly turnover ratio of 20%. The top four sectors in terms of weight are communication services, consumer cyclical, energy and utilities, which represent 24.70%, 23.57%, 22.65% and 10.18% of the equity portfolio.
Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Kohl’s
Appaloosa sold all 1.875 million shares of Kohl’s (KSS, Financial), trimming 4.20% of its equity portfolio.
Shares of Kohl’s averaged $29.17 during the third quarter; the stock is significantly undervalued based on its price-to-GF Value ratio of 0.59 as of Tuesday.
The Menomonee Falls, Wisconsin-based department store chain has a GF Score of 78 out of 100 based on a GF Value rank of 8 out of 10, a financial strength rank of 5 out of 10, a growth rank of 4 out of 10 and a rank of 7 out of 10 for momentum and profitability.
Occidental Petroleum
The firm sold all 875,000 shares of Occidental Petroleum (OXY, Financial), trimming 3.23% of its equity portfolio.
Shares of Occidental Petroleum averaged $64.01 during the third quarter; the stock is significantly overvalued based on its price-to-GF Value ratio of 1.38 as of Tuesday.
The Houston-based energy exploration and production company has a GF Score of 63 out of 100 based on a profitability rank of 7 out of 10, a growth rank of 5 out of 10, a financial strength rank of 4 out of 10, a momentum rank of 3 out of 10 and a GF Value rank of 1 out of 10.
Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) owns 194,351,650 shares of Occidental Petroleum as of the third-quarter 13F portfolio filing. The shares occupy 4.03% of the equity portfolio.
Micron Technology
Tepper's Appaloosa sold all 575,000 shares of Micron Technology (MU, Financial), reducing its equity portfolio by 2%.
Shares of Micron Technology averaged $58 during the third quarter; the stock is modestly undervalued based on its price-to-GF Value ratio of 0.82 as of Tuesday.
The Boise, Idaho-based memory chip manufacturer has a GF Score of 93 out of 100, driven by a momentum rank of 7 out of 10, a rank of 9 out of 10 for GF Value and profitability, and a rank of 8 out of 10 for growth and financial strength.
Gurus with holdings in Micron Technology include PRIMECAP Management (Trades, Portfolio) and Li Lu (Trades, Portfolio)’s Himalaya Capital Management.
Aptiv
The firm sold all 250,000 shares of Aptiv (APTV, Financial), paring 1.40% of its equity portfolio. Shares averaged $95.93 during the third quarter; the stock is fairly valued based on its price-to-GF Value ratio of 0.95 as of Tuesday.
The Irish auto parts company has a GF Score of 84 out of 100 based on a rank of 8 out of 10 for momentum and profitability and a rank of 6 out of 10 for GF Value, financial strength and growth.
Netflix
Appaloosa sold all 50,000 shares of Netflix (NFLX, Financial), trimming 0.55% of its equity portfolio.
Shares of Netflix averaged $222.12 during the third quarter; the stock is significantly undervalued based on its price-to-GF Value ratio of 0.49 as of Tuesday.
The Los Gatos, California-based streaming giant has a GF Score of 92 out of 100 based on a growth rank of 10 out of 10, a profitability rank of 9 out of 10, a momentum rank of 8 out of 10, a financial strength rank of 6 out of 10 and a GF Value rank of 4 out of 10.
Other gurus with holdings in Netflix include Baillie Gifford (Trades, Portfolio) and Ken Fisher (Trades, Portfolio)’s Fisher Investments.
PG&E
Appaloosa sold all 750,000 shares of PG&E Corp. (PCG, Financial), reducing its equity portfolio by 0.47%.
Shares of PG&E averaged $11.71 during the third quarter; the stock is significantly overvalued based on its price-to-GF Value ratio of 2.42.
The San Francisco-based utility company has a GF Score of 55 out of 100 based on a financial strength rank of 3 out of 10, a rank of 1 out of 10 for growth and GF Value and a rank of 6 out of 10 for momentum and profitability.
