Tracking David Tepper’s Appaloosa Management Portfolio – Q4 2023 Update

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 2/14/2024. 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 Q3 2023.

This quarter, Tepper’s 13F portfolio value increased from ~$5.07B to ~$5.79B. The number of holdings increased from 30 to 38. The top five positions are Meta Platforms, Microsoft, Amazon.com, Nvidia, and Uber Technologies. They add up to ~45% of the portfolio.

New Stakes:

Oracle (ORCL), ARK Innovation ETF (ARKK), and United Parcel Service (UPS): ORCL is a 2.41% of the portfolio stake established this quarter at prices between ~$100 and ~$117 and the stock currently trades at ~$114. The 2.31% ARKK stake was purchased at prices between ~$34 and ~$54 and it is now at ~$50. UPS is a 1.36% of the portfolio position established this quarter at prices between ~$135 and ~$163 and the stock currently trades at ~$153.

HCA Healthcare (HCA), FMC Corp. (FMC), Whirlpool (WHR), Norfolk Southern (NSC), Mohawk Industries (MHK), General Motors (GM), Masco (MAS), and Owens Corning (OC): These very small (less than ~0.55% of the portfolio each) stakes were established during the quarter.

Stake Disposals:

Arista Networks (ANET), JD.com (JD), and Enterprise Products Partners (EPD): These small (less than ~1% of the portfolio each) stakes were dropped during the quarter.

Stake Increases:

Microsoft (MSFT): The large (top three) ~11% 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. There was a whopping ~375% stake increase during Q2 2023 at prices between ~$275 and ~$348. That was followed by a one-third increase last quarter at prices between ~$312 and ~$358. The stock currently trades at ~$408. There was a minor ~4% increase this quarter.

Amazon.com (AMZN): The large (top three) 10.36% 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 during Q1 2023 at prices between ~$83 and ~$113. That was followed by a ~60% increase in the next quarter at prices between ~$98 and ~$130. The last quarter also saw a ~20% increase at prices between ~$126 and ~$145. The stock currently trades at ~$177. There was a ~5% increase this quarter.

Alibaba Group Holding (BABA): The 5.82% BABA stake was primarily built during Q2 2023 at prices between ~$79 and ~$103. There was a ~20% selling in the last quarter at prices between ~$84 and ~$102. This quarter saw a similar increase at prices between ~$71 and ~$88. The stock currently trades at ~$72.

Caesars Entertainment (CZR): The 1.82% CZR stake saw a ~25% increase in the last quarter at prices between ~$46 and ~$59. That was followed by a ~48% increase this quarter at prices between ~$38.50 and ~$49. The stock currently trades at ~$41.50.

Antero Resources (AR): The 0.78% 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. Q2 2023 saw a ~50% stake increase at prices between ~$20 and ~$24. The stock currently trades at ~$26.50. This quarter saw a minor ~2% further increase.

MPLX LP (MPLX): The very small 0.42% stake in MPLX was primarily built this quarter.

Stake Decreases:

Meta Platforms (META): META is now the largest position at 11.31% of the portfolio. It was 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 the 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 Q1 2023 saw a ~22% increase at prices between ~$125 and ~$212. That was followed by a ~115% increase next quarter at prices between ~$208 and ~$289. Last quarter also saw a ~30% increase at prices between ~$283 and ~$326. The stock is currently at ~$517. There was a ~5% trimming this quarter.

NVIDIA (NVDA): NVDA is now a large top five position at 6.76% of the portfolio. It was purchased during Q1 2023 at prices between ~$143 and ~$280. The position was increased by a whopping ~600% next quarter at prices between ~$262 and ~$438. The stock currently trades at ~$917. This quarter saw a ~23% selling at prices between ~$403 and ~$504.

Uber Technologies (UBER): UBER is now a 6.38% 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 in the 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 three quarters through Q2 2023 saw the stake rebuilt at prices between ~$24.40 and ~$44. The stock currently trades at ~$80. This quarter saw a ~17% trimming.

Alphabet (GOOG): GOOG is currently at 5.60% 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. There was a ~20% stake increase in the last quarter while this quarter saw similar selling. The stock currently trades at ~$135.

Advanced Micro Devices (AMD): The 5.12% AMD position was purchased during Q2 2023 at prices between ~$82 and ~$129 and the stock currently trades at ~$212. This quarter saw a ~12% trimming.

Intel(INTC): INTC is a ~4% of the portfolio stake established during Q2 2023 at prices between ~$27 and ~$36 and it is now at $46.25. There was a ~8% trimming last quarter. That was followed by a ~26% reduction this quarter at prices between ~$32.50 and ~$50.75.

Qualcomm (QCOM): The 2.50% QCOM position was purchased during Q2 2023 at prices between ~$103 and ~$128 and the stock currently trades at ~$177. There was a ~30% selling in the last quarter at prices between ~$106 and ~$131. That was followed by a ~23% reduction this quarter at prices between ~$105 and ~$146.

PDD Holdings (PDD): PDD is a ~2% of the portfolio stake that saw the position almost double in the last quarter at prices between ~$68 and ~$103. This quarter saw the position sold down by ~45% at prices between ~$98 and ~$150. The stock is now at ~$118.

Baidu (BIDU): The 1.29% BIDU position was purchased during Q2 2023 at prices between ~$117 and ~$151 and the stock is now at ~$97. There was a ~50% reduction in the last quarter at prices between ~$125 and ~$156. This quarter saw a ~6% trimming.

Taiwan Semiconductor Manufacturing Company Limited (TSM): TSM is a 0.90% of the portfolio stake established during Q2 2023 at prices between ~$82 and ~$107 and it now goes for ~$149. There was a ~45% selling last quarter at prices between ~$84 and ~$105. This quarter saw another ~50% reduction at prices between ~$85 and ~$105.

KE Holdings (BEKE): BEKE is a small 0.48% of the portfolio position established in the last quarter at prices between $13.88 and $18.30. The stock currently trades at $12.60. This quarter saw a ~29% selling.

Lam Research (LRCX), Macy’s (M), and Micron Technology (MU): These small (less than ~2% of the portfolio each) stakes were reduced during the quarter.

Kept Steady:

FedEx (FDX): FDX is a 2.84% of the portfolio position purchased during Q1 2023 at prices between ~$177 and ~$229. There was a ~85% stake increase in the next quarter at prices between ~$217 and ~$250. The stock currently trades at ~$251.

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 in 2018, 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 ~$15, and the stake is at 2.33% of the portfolio.

UnitedHealth (UNH): UNH is now a 1.82% 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 during Q2 2023 at prices between ~$458 and ~$526. The stock currently trades at ~$477.

EQT Corp. (EQT): EQT is a 1.38% 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 during Q2 2023. The stock is now at ~$37.50.

ASML Holding (ASML), Chesapeake Energy & wts, and Southwestern Energy (SWN): These very small (less than ~1% of the portfolio each) stakes were kept steady this quarter.

The spreadsheet below highlights changes to Tepper’s 13F stock holdings in Q4 2023: