FDX - Tracking David Tepper's Appaloosa Management Portfolio - Q2 2023 Update

2023-09-07 06:24:02 ET

Summary

• David Tepper's 13F portfolio value increased from ~$1.89B to ~$5.39B this quarter.
• Tepper established new stakes in Advanced Micro Devices, Intel Corp, Qualcomm Inc., Taiwan Semi, and Baidu, among others.
• Tepper reduced his stakes in Energy Transfer LP, EQT Corp, Macy's Inc., Chesapeake Energy, and Constellation Energy.

This article is part of a series that provides an ongoing analysis of the changes made to David Tepper's 13F portfolio on a quarterly basis. It is based on Appaloosa Management's regulatory 13F Form filed on 8/14/2023. Please visit our Tracking David Tepper's Appaloosa Management Portfolio series to get an idea of his investment philosophy and our previous update for the fund's moves during Q1 2023.

This quarter, Tepper's 13F portfolio value increased from ~$1.89B to ~$5.39B. The number of holdings increased from 28 to 38. The top five positions are Nvidia, Meta Platforms, Microsoft, Amazon.com, and Alibaba Group Holding. They add up to ~38% of the portfolio. To know more about Tepper's distress investing style, check out the book Distress Investing: Principles and Technique .

New Stakes:

Advanced Micro Devices ( AMD ), Intel Corp ( INTC ), Qualcomm Inc. ( QCOM ), Taiwan Semi ( TSM ), and Baidu ( BIDU ): These are large new stakes established this quarter. The 4.88% AMD position was purchased at prices between ~$82 and ~$129 and the stock currently trades at ~$109. INTC is a 4.20% of the portfolio stake established at prices between ~$27 and ~$36 and it is now at ~$37. The ~4% QCOM position was purchased at prices between ~$103 and ~$128 and the stock currently trades at ~$115. TSM is a 3.32% of the portfolio stake established at prices between ~$82 and ~$107 and it now goes for ~$92. The 3.24% BIDU position was purchased at prices between ~$117 and ~$151 and the stock is now at ~$142.

Marvell Technology ( MRVL ), Broadcom Inc. ( AVGO ), Apple Inc. ( AAPL ), Micron Technology ( MU ), Lam Research ( LRCX ), JD.com ( JD ), Synopsys ( SNPS ), and ASML Holding ( ASML ): These are small (less than ~2% of the portfolio each) new stakes established this quarter.

PDD Holdings ( PDD ), Cadence Design Systems ( CDNS ), KraneShares CSI China Internet ETF ( KWEB ), iShares China Large-Cap ETF ( FXI ), Arista Networks ( ANET ), and Southwestern Energy ( SWN ): These are very small (less than ~1% of the portfolio each) new positions purchased during the quarter.

Stake Disposals:

ARK Innovation ETF ( ARKK ) and Match Group ( MTCH ): ARKK was a small ~1% stake established last quarter at prices between ~$30.50 and ~$44.40. The disposal this quarter was at prices between ~$35 and ~$45. The stock currently trades at $44.17. The ~1% MTCH position was purchased last quarter at prices between ~$34.80 and ~$54.10. The elimination this quarter was at prices between ~$31 and ~$44. The stock is now at $45.26.

Select Sector SPDR Financials ( XLF ) and Tesla Inc. ( TSLA ): The 2.24% XLF stake was established last quarter at prices between ~$31 and ~$37. It was disposed this quarter at prices between ~$31.50 and ~$34. It is now at $34.32. The 1.64% TSLA stake was established last quarter at prices between ~$108 and ~$214. The stake was sold this quarter at prices between ~$154 and ~$275. The stock currently trades at ~$252.

Walt Disney ( DIS ): The 1.59% of the portfolio DIS stake was purchased during Q4 2022 at prices between ~$84 and ~$107. It was sold this quarter at prices between ~$88 and ~$103. The stock currently trades at ~$81.

Salesforce.com ( CRM ): CRM was a ~3% of the portfolio position established in Q2 2022 at prices between ~$156 and ~$221 and the stock is now at ~$222. There was a ~60% stake increase during Q4 2022 at prices between ~$128 and ~$165. Last quarter saw a minor ~3% trimming and the elimination this quarter was at prices between ~$189 and ~$223.

HCA Healthcare ( HCA ): HCA was a ~2% of the portfolio position that saw a ~140% stake increase during Q4 2022 at prices between ~$185 and ~$245. There was a ~22% reduction last quarter at prices between ~$243 and ~$264. The disposal this quarter was at prices between ~$264 and ~$304. The stock currently trades at ~$275.

ALPS Alerian MLP ETF ( AMLP ) and Sysco Corp ( SYY ): These very small (less than ~1% of the portfolio each) stakes were sold during the quarter.

Stake Increases:

FedEx Corp ( FDX ) and NVIDIA Corp ( NVDA ): FDX is a ~3% of the portfolio position purchased last quarter at prices between ~$177 and ~$229. There was a ~85% stake increase this quarter at prices between ~$217 and ~$250. The stock currently trades at ~$258. NVDA is now the largest position at ~8% of the portfolio. It was purchased last quarter at prices between ~$143 and ~$280. The position was increased by a whopping ~600% this quarter at prices between ~$262 and ~$438. The stock currently trades at ~$471.

Meta Platforms ( META ): META is a large (top three) ~8% of the portfolio stake established in Q3 2016 at prices between $114 and $131 and increased by ~50% in the following quarter at prices between $115 and $133. H2 2017 saw a stake doubling at prices between $148 and $183. The position has since wavered. Recent activity follows. Q1-Q3 2020 had seen a ~40% selling at prices between $146 and $304 while next quarter saw a ~14% stake increase. The five quarters through Q1 2022 had seen a ~55% selling at prices between ~$187 and ~$382. There was a one-third selling during Q4 2022 at prices between ~$89 and ~$142 while last quarter saw a ~22% increase at prices between ~$125 and ~$212. That was followed by a ~115% increase this quarter at prices between ~$208 and ~$289. The stock is currently at ~$299.

Microsoft ( MSFT ): The 7.84% MSFT stake was built in 2020 at prices between $152 and $232. The two quarters through Q2 2021 had seen a ~45% selling at prices between ~$212 and ~$272. Q1 2022 saw a ~25% stake increase at prices between ~$275 and ~$335 while the next quarter there was a roughly one-third reduction at prices between ~$242 and ~$315. The stock currently trades at ~$333. There was a whopping ~375% stake increase this quarter at prices between ~$275 and ~$348.

Amazon.com ( AMZN ): The large (top five) 7.65% AMZN stake was purchased in Q1 2019 at prices between ~$75 and ~$91. The next three quarters saw a ~75% stake increase at prices between ~$84.50 and ~$101. There was a ~50% selling from Q1 to Q3 2020 at prices between ~$84 and ~$177. Q4 2020 saw an about turn: ~40% stake increase at prices between ~$150 and ~$172. There was a two-thirds selling over the next three quarters at prices between ~$148 and ~$187. Q1 2022 saw a ~20% stake increase while during Q3 2022 there was similar selling. There was a one-third increase in the last quarter at prices between ~$83 and ~$113. That was followed by a ~60% increase this quarter at prices between ~$98 and ~$130. The stock currently trades at ~$135.

Alibaba Group Holding ( BABA ): The ~7% BABA stake was primarily built this quarter at prices between ~$79 and ~$103. The stock currently trades at ~$94.

Uber Technologies ( UBER ): UBER is now a 5.73% of the portfolio position. The original large stake was purchased in Q2 2021 at prices between ~$44 and ~$61. Q4 2021 saw that stake almost sold out at prices between ~$36 and ~$48. The position was rebuilt next quarter at prices between ~$29 and ~$44.50 but was again sold down in Q2 2022 at prices between ~$20.50 and ~$36.50. The last three quarters saw the stake rebuilt at prices between ~$24.40 and ~$44. The stock currently trades at ~$46.

Alphabet Inc. ( GOOG ) ( GOOGL ): GOOG is currently at ~5% of the portfolio. It has been a significant presence in the portfolio since Q1 2012 and the original purchase was at prices between ~$14.50 and ~$16.25. The stake has wavered. Recent activity follows: Q1-Q3 2020 saw a ~40% reduction at prices between ~$53 and ~$86. That was followed with a ~60% reduction over the six quarters through Q2 2022 at prices between ~$87 and ~$151. The stock currently trades at ~$135. There was a ~6% increase last quarter and a ~9% increase this quarter.

UnitedHealth ( UNH ): UNH is now a 1.78% of the portfolio position. The stake was built in Q4 2020 and Q1 2021 at prices between ~$305 and ~$377. The next five quarters saw a ~45% selling at prices between ~$367 and ~$546. There was a one-third stake increase this quarter at prices between ~$458 and ~$526. The stock currently trades at ~$477.

Caesars Entertainment ( CZR ): CZR is a 1.17% of the portfolio position established during Q4 2022 at prices between ~$32 and ~$54 and it is now at $53.74. There was a 190% stake increase this quarter at prices between ~$41 and ~$51.

Antero Resources ( AR ): The 0.84% stake in AR was established in Q1 & Q3 2021 at prices between ~$6 and ~$19. There was a ~55% reduction over the three quarters through Q4 2022 at prices between ~$17 and ~$48. The stock currently trades at $26.85. This quarter saw a ~50% stake increase at prices between ~$20 and ~$24.

Stake Decreases:

Energy Transfer LP ( ET ): Energy Transfer Partners merged with Energy Transfer Equity and the resulting entity was renamed Energy Transfer LP ( ET ). The transaction closed last January, and terms were 1.28 shares of ETE for each ETP. Tepper held shares in both and those got converted to ET shares. There was a stake doubling in Q4 2019 at prices between $11 and $13. Next three quarters saw the stake again doubled at prices between $4.55 and $13.75 while Q2 2021 saw a ~45% selling at prices between ~$7.70 and ~$11.35. The stock is now at $13.50, and the stake is at 2.31% of the portfolio. There was a ~4% trimming this quarter.

EQT Corp ( EQT ): EQT is a 1.57% of the portfolio position built over the two quarters through Q3 2021 at prices between ~$16 and ~$23. There was a ~50% reduction over the three quarters through Q3 2022 at prices between ~$20 and ~$50. That was followed by a ~20% trimming this quarter. The stock is now at $42.33.

Macy's Inc. ( M ): The 1.49% Macy's stake was almost doubled in Q3 2021 at prices between ~$16 and ~$25. There was a ~45% stake increase in the next quarter at prices between ~$22 and ~$37. H1 2022 saw a ~40% reduction at prices between ~$17.50 and ~$28. The stock is now at $11.82. There was a ~15% trimming this quarter.

Chesapeake Energy ( CHK ), Constellation Energy ( CEG ), Enterprise Products Partners ( EPD ), and MPLX LP ( MPLX ): These very small (less than ~1% of the portfolio each) stakes were reduced this quarter.

The spreadsheet below highlights changes to Tepper's 13F stock holdings in Q2 2023:

For further details see: