David Tepper's Appaloosa adds 1 new name to portfolio in shift

David Tepper's Appaloosa Management added 1 new name to its portfolio in a recent period, taking a stake in a beaten-down stock, according to a regulatory filing.

The specific stock and position size were not disclosed in the available filing details. Appaloosa reshuffled its holdings earlier this year, exiting positions in Amazon.com Inc., Microsoft Corp. and Qualcomm Inc. in the first quarter, according to earlier 13F filings. The fund added NRG Energy Inc., Corning Inc. and UnitedHealth Group Inc. during that period. Appaloosa's top disclosed holdings include Alibaba Group Holding Ltd., Alphabet Inc. and Nvidia Corp.

Tepper, founder of Appaloosa and one of Wall Street's most closely followed hedge fund managers, has a track record of betting on distressed names ahead of recoveries. He made billions during the 2020 market recovery by buying bank and airline stocks at depressed levels. His new position suggests he sees a similar value opportunity in a name that has underperformed its sector peers.

The move comes as other prominent hedge fund managers have also rotated portfolios this quarter. Stanley Druckenmiller's Duquesne Family Office added Brazil exposure, while Berkshire Hathaway entered a new position in the New York Times Co., according to recent 13F filings. The quarterly 13F disclosures, filed within 45 days of each quarter-end, offer a delayed but closely watched snapshot of what the world's top investors are buying and selling.

Tepper's bet on a beaten-down name fits his history of contrarian value investing. Investors will watch for subsequent filings to confirm the position size, entry price and timing of the new stake.

This article is for informational purposes only and does not constitute investment advice.