Tracking David Tepper's Appaloosa Management Portfolio - Q2 2022 Update

Aug. 28, 2022 10:38 PM ETAGCB, AMLP, AMZN, APA, APTV, APTV.PA, AR, BABA, BABAF, CEG, CHK, CRM, CZR, DIS, EPD, EQT, ET, ET.PC, ET.PD, ET.PE, EXC, FCX, GOOG, GOOGL, GT, HCA, JWN, KSS, LVS, M, META, MOS, MPLX, MPLXP, MSFT, MU, NFLX, OXY, PCG, PCGU, SYY, TCVA, UBER, UNH, WES, WYNN, XLE, XOP10 Comments
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Summary

  • David Tepper’s 13F portfolio value decreased from $2.50B to $1.59B this quarter.
  • Appaloosa added Constellation Energy & Salesforce and increased Kohl’s Corp while decreasing Occidental Petroleum and PG&E.
  • Alphabet, Meta Platforms, Amazon.com, Constellation Energy, and Macy's are the five largest positions.

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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 8/15/2022. 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 2022.

This quarter, Tepper’s 13F portfolio value decreased ~36% from $2.50B to $1.59B as many positions were reduced or sold. The number of holdings decreased from 32 to 29. The top five positions are Alphabet (GOOG, GOOGL), Meta Platforms (META), Amazon.com (AMZN), Constellation Energy (CEG), and Macy's (M). They add up to ~50% of the portfolio. To know more about Tepper's distress investing style, check out the book Distress Investing: Principles and Technique.

New Stakes:

Constellation Energy: CEG is a large (top five) 9.71% of the portfolio position established this quarter at prices between ~$53 and ~$67 and the stock currently trades well over that range at $80.83.

Note: Constellation Energy is Exelon’s (EXC) power generation and marketing business that was spun off in February.

Salesforce (CRM) and Aptiv PLC (APTV): CRM is a ~2% of the portfolio position established this quarter at prices between ~$156 and ~$221 and the stock is now at ~$165. The 1.40% of the portfolio stake in APTV was purchased at prices between ~$86 and ~$120 and it is now at $94.55.

HCA Healthcare (HCA), Alibaba Group Holding (BABA), Netflix, Inc. (NFLX), Caesars Entertainment (CZR), and Walt Disney (DIS): These very small (less than ~1% of the portfolio each) stakes were established this quarter.

Stake Disposals:

Las Vegas Sands (LVS) and Wynn Resorts (WYNN): These two stakes established last quarter were dropped this quarter. LVS was a 0.82% of the portfolio position established at prices between ~$32 and ~$48. The disposal this quarter was at prices between ~$30 and ~$40. The stock currently at $37.93. The 0.72% WYNN stake was purchased at prices between ~$67 and ~$96. The elimination this quarter was at prices between ~$52 and ~$82. It is now at $62.33.

SPDR Energy ETF (XLE): The 2.13% XLE stake was purchased in Q4 2020 at prices between $27.70 and $41.60. The position was increased by ~40% next quarter at prices between ~$38 and ~$54 while Q2 2021 saw similar selling at prices between ~$47 and ~$56. There was a two-thirds selling last quarter at prices between ~$57 and ~$79. The remaining position was sold this quarter at prices between ~$71 and ~$92. The stock is now at $82.84.

Altimeter Growth Corp. 2 (AGCB), APA Corporation (APA), Freeport-McMoRan (FCX), Goodyear Tire & Rubber (GT), Nordstrom, Inc. (JWN), SPDR S&P Oil & Gas ETF (XOP), TCV Acquisition (TCVA), and Western Midstream Partners (WES): These small (less than ~2% of the portfolio each) stakes were dropped this quarter.

Stake Increases:

Meta Platforms: META is a top-three 10.12% 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 last five quarters had seen a ~55% selling at prices between ~$187 and ~$382. The stock is currently at ~$162. This quarter saw a ~12% increase.

Note: META has seen several previous roundtrips in the portfolio. The latest was a 3.28% of the portfolio position established in Q1 2016 at prices between $94 and $116 and sold the following quarter at prices between $109 and $121.

Energy Transfer LP (ET): Energy Transfer Partners merged with Energy Transfer Equity and the resulting entity was renamed Energy Transfer LP. 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 $12.14, and the stake is at 6.43% of the portfolio. This quarter saw a ~12% increase.

Kohl's Corp (KSS): The 4.20% KSS position saw a ~170% stake increase this quarter at prices between ~$29 and ~$61. The stock is now near the low end of that range at $29.74.

MPLX LP (MPLX): The minutely small 0.35% stake in MPLX was increased this quarter.

Stake Decreases:

Alphabet Inc.: GOOG is currently the largest 13F position at ~14% 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 last six quarters at prices between ~$87 and ~$151. The stock currently trades at ~$111.

Note: the prices quoted above are adjusted for the 20-for-1 stock-split last Month.

Macy's, Inc.: The top-five 6.90% Macy's stake was almost doubled in Q3 2021 at prices between ~$16 and ~$25. There was a ~45% stake increase next quarter at prices between ~$22 and ~$37. Last two quarters saw a ~40% reduction at prices between ~$17.50 and ~$28. The stock is now at $18.48.

EQT Corp (EQT): EQT is a 6.15% of the portfolio position built over the two quarters through Q3 2021 at prices between ~$16 and ~$23. There was a ~40% reduction over the last two quarters at prices between ~$20 and ~$50. The stock is now at $49.67.

UnitedHealth (UNH): UNH is now a 4.84% of the portfolio position. The stake was built in Q4 2020 and Q1 2021 at prices between ~$305 and ~$377. Last five quarters have seen a ~45% selling at prices between ~$367 and ~$546. The stock currently trades at ~$529.

Microsoft (MSFT): The ~4% 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. Last quarter saw a ~25% stake increase at prices between ~$275 and ~$335 while this quarter, there was a roughly one-third reduction at prices between ~$242 and ~$315. The stock currently trades at ~$268.

Occidental Petroleum (OXY): OXY is a 3.23% of the portfolio stake established in Q4 2020 at prices between ~$8.90 and ~$21.30. H2 2021 saw a roughly one-third selling at prices between ~$23.20 and ~$32.90 while next quarter there was a ~15% stake increase at prices between ~$22 and $33. There was a ~85% reduction over the last two quarters at prices between ~$31 and ~$71. The stock currently trades at $73.55.

Antero Resources (AR) and Sysco Corp (SYY): The 2.74% stake in AR was established in Q1 & Q3 2021 at prices between ~$6 and ~$19. There was a ~50% reduction over the last two quarters at prices between ~$17 and ~$48. The stock currently trades at $42.25. SYY is a 2.26% stake established in Q2 2020 at prices between ~$40 and ~$62. The position has seen selling since. Last two quarters saw a ~50% reduction at prices between ~$75 and ~$90. The stock is now at $83.63.

Micron Technology (MU): MU is currently a ~2% of the portfolio position. The original large stake was built in Q3 2019 at prices between $39.50 and $51. There was a one-third increase in Q4 2019 at prices between $42 and $55.50. The next three quarters had also seen a ~50% increase at prices between ~$34.50 and ~$60. There was a ~93% selling over the last six quarters at prices between ~$54 and ~$97. The stock currently trades at $57.63.

Note: MU is a frequently traded stock in Tepper’s portfolio.

Uber Technologies (UBER): UBER is now a small 1.28% 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 last quarter at prices between ~$29 and ~$44.50 but was again sold down this quarter at prices between ~$20.50 and ~$36.50. The stock currently trades at $28.58.

Chesapeake Energy (CHK) & wts, Enterprise Products Partners (EPD), Mosaic Company (MOS), and PG&E Corp. (PCG): These small (less than ~2.5% of the portfolio each) stakes were reduced during the quarter.

Kept Steady:

Amazon.com: The large (top three) ~10% 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. Last quarter saw a ~20% stake increase at prices between ~$136 and ~$170. The stock currently trades at ~$131.

Note: the prices quoted above are adjusted for the 20-for-1 stock split in June.

ALPS Alerian MLP ETF (AMLP): The small 0.88% stake in AMLP was kept steady this quarter.

The spreadsheet below highlights changes to Tepper’s 13F stock holdings in Q2 2022:

David Tepper - Appaloosa's Q2 2022 13F Report Q/Q Comparison

David Tepper - Appaloosa's Q2 2022 13F Report Q/Q Comparison (John Vincent (author))

Source: John Vincent. Data constructed from Appaloosa’s 13F filings for Q1 2022 and Q2 2022.

This article was written by

John Vincent profile picture
21.97K Followers
Focused on cloning strategies by analyzing 13F reports of a curated set of around fifty super-investors and generating Absolute Returns thru exploiting inefficiency, volatility, and momentum.

Disclosure: I/we have a beneficial long position in the shares of AMZN, GOOGL, META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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