Appaloosa founder and renowned hedge fund manager David Tepper is widely regarded for his excellent returns as well as his near perfect timing on his purchases. The guru made his much of his wealth by foreseeing and accurately playing the housing crisis and the financial recovery that was to follow.
Over the third quarter, David Tepper made new buys in to 5 stocks across various sectors of the market. The hedge fund’s portfolio holds 64 stocks and is valued at nearly $6.3 billion, which is slightly down from last quarter’s portfolio value of nearly $7 billion.
Citigroup (C)
David Tepper’s largest stock position over the past quarter was in Citigroup where he held on to 9,733,639 shares of the company’s stock. His holdings in Citigroup made up for 7.5% of his total portfolio as well as 0.32% of the company’s shares outstanding.
Over the past quarter Tepper increased his holdings 1.37% by purchasing 132,000 shares of the company’s stock. He bought these shares in the quarterly price range of $47.67 to $53.00, with an estimated average quarterly price of $50.56 per share. Since then the price per share has increased a slight 0.3%.
Tepper’s historical holding history:
Citigroup is a global financial services holding company, whose businesses provide consumers, corporations, governments and institutions with a range of financial services such as consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management.
Citigroup’s historical price, revenue and net income:
The analysis on Citigroup reports that the company’s revenue has been in decline over the past five years. It also notes that the company’s P/S ratio is nearing a 5-year high.
The top guru shareholders of Citigroup:
1. James Barrow: 21,670,855 shares, representing 0.71% of the company’s shares outstanding.
2. HOTCHKIS & WILEY: 11,578,455 shares, representing 0.38% of the company’s shares out.
3. Ken Fisher: 10,996,671 shares, representing 0.36% of the company’s shares outstanding.
The Peter Lynch Chart suggests that the company is currently undervalued:
Citigroup has a market cap of $153.99 billion. Its shares are currently being traded at around $50.77 with a P/E ratio of 12.80, a P/B ratio of 0.80 and a P/S ratio of 2.20.
Goodyear Tire & Rubber Co (GT)
The guru’s second largest position goes to Goodyear Tire & Rubber where he holds on to 18,843,154 shares. This position makes up for 6.7% of his total portfolio and 7.66% of the company’s shares outstanding.
During the third quarter Tepper reduced his holdings -14.35% by selling a total of 3,156,846 shares of the company’s stock. He sold these shares in the price range of $15.38 to $22.98, with an estimated average quarterly price of $19.14 per share. Since his sell the price per share has gone up about 11.8%.
Tepper’s historical holding history:
Goodyear Tire is a manufacturer of tires and rubber products. It also manufactures and markets several lines of power transmission belts, hoses and other rubber products for the transportation industry and various industrial and chemical markets, and rubber-related chemicals for various applications.
Goodyear Tire & Rubber’s historical revenue and net income:
The analysis on Goodyear reports that the company has issued $1.5 billion of debt over the past three years, its revenue has been in decline over the past year and its price is trading at a near 1-year high.
The top guru shareholders of Goodyear:
1. David Tepper: 18,843,154 shares, representing 7.66% of the company’s shares outstanding.
2. HOTCHKIS & WILEY: 5,579,814 shares, representing 2.27% of the company’s shares out.
3. Steven Cohen: 3,049,107 shares, representing 1.24% of the company’s shares outstanding.
The Peter Lynch Chart suggests that the company is currently overvalued:
Goodyear Tire & Rubber has a market cap of $5.29 billion. Its shares are currently trading at around $21.40 with a P/E ratio of 18.20, a P/S ratio of 0.30 and a P/B ratio of 11.60. The company had an annual average earnings growth of 10.80% over the past ten years.
United Continental Holdings (UAL)
Tepper’s third largest position goes to United Continental where he maintains 8,523,821 shares of the company’s stock. His holdings represent 4.2% of his total portfolio as well as 2.40% of the company’s shares outstanding.
During the third quarter Tepper upped his stake in United Continental Holdings. The guru increased his position 10.25% by purchasing 792,777 shares. He bought these shares in the third quarter price range of $27.71 to $36.25, with an estimated average quarterly price of $32.18 per share. Since then the price per share has grown an additional 15.8%.
Tepper’s historical holding history:
UAL is a holding company and its principal wholly owned subsidiaries are United and Continental. United's and Continental's operations consist primarily of the transportation of persons, property and mail throughout the United States and abroad.
United Continental’s historical revenue and net income:
The analysis on United Continental reports that the company’s price is at a 5-year high, its revenue has been in decline over the past five years and its P/S ratio is currently sitting at a 10-year high.
The top guru shareholders of UAL:
1. PRIMECAP: 9,776,795 shares, representing 2.75% of the company’s shares outstanding.
2. David Tepper: 8,523,821 shares, representing 2.4% of the company’s shares outstanding.
3. Brian Rogers: 7,500,000 shares, representing 2.11% of the company’s shares outstanding.
United Continental Holdings has a market cap of $13.49 billion. Its shares are currently trading at around $37.27 with a P/S ratio of 0.40 and a P/B ratio of 7.90.
Delta Air Lines (DAL)
The guru’s fourth largest stock goes to Delta Air Lines where he holds on to 8,400,000 shares of the company’s stock. His position represents 3.2% of his holdings and 0.98% of the company’s shares outstanding.
Over the duration of the third quarter Tepper cut his holdings -18.37% by selling 1,890,884 shares. He sold these shares in the quarterly price range of $18.41 to $24.01, with an estimated average quarterly price of $20.84 per share. Since then the price per share has increased a notable 32.8%.
Tepper’s historical holding history:
Delta Air Lines operates as an airline, providing scheduled air transportation for passengers and cargo throughout the United States and around the world.
Delta’s historical revenue and net income:
The top guru shareholders of DAL:
1. PRIMECAP: 16,163,700 shares, representing 1.88% of the company’s shares outstanding.
2. David Tepper: 8,400,000 shares, representing 0.98% of the company’s shares outstanding.
3. Ken Heebner: 5,250,000 shares, representing 0.61% of the company’s shares outstanding.
The Peter Lynch Chart suggests that the company is currently undervalued:
Delta Air Lines has a market cap of $23.71 billion. Its shares are currently trading at around $27.71 with a P/E ratio of 11.60, a P/S ratio of 0.60 and a P/B ratio of 173.30.
HCA Holdings (HCA)
Tepper’s fifth largest position goes to HCA Holdings where he owns 4,573,082 shares. His holdings represent 3.1% of his total assets managed as well as 1.02% of the company’s shares outstanding.
During the third quarter Tepper upped his holdings 16.57% by purchasing a total of 650,000 shares of the company’s stock. He bought these shares in the quarterly price range of $35.49 to $42.75, with an estimated average quarterly price of $39.07. Since his increase the price per share is up about 13.1%.
Tepper’s holding history as of the third quarter:
HCA Holdings owns and operates hospitals and related health care entities. The company's general, acute care hospitals provide a range of services to accommodate such medical specialties as internal medicine, general surgery, cardiology, oncology, neurosurgery, orthopedics, and obstetrics, as well as diagnostic and emergency services.
HCA Holdings’ historical revenue and net income:
The analysis on HCA Holdings reports that the company has issued $1.6 billion of debt over the past three years, its operating margin is expanding and its price is sitting near its 3-year high.
The top guru shareholders of HCA Holdings:
1. Larry Robbins: 10,341,713 shares, representing 2.31% of the company’s shares outstanding.
2. David Tepper: 4,573,082 shares, representing 1.02% of the company’s shares outstanding.
3. John Griffin: 3,790,000 shares, representing 0.85% of the company’s shares outstanding.
The Peter Lynch Chart suggests that the company is currently undervalued:
HCA Holdings has a market cap of $19.79 billion. Its shares are currently trading at around $44.20 with a P/E ratio of 14.10and a P/S ratio of 0.60. The company had an annual average earnings growth of 4.60% over the past ten years.
Check out the rest of David Tepper’s third quarter portfolio here.
Try a free 7-day premium membership trial here.
Over the third quarter, David Tepper made new buys in to 5 stocks across various sectors of the market. The hedge fund’s portfolio holds 64 stocks and is valued at nearly $6.3 billion, which is slightly down from last quarter’s portfolio value of nearly $7 billion.
Citigroup (C)
David Tepper’s largest stock position over the past quarter was in Citigroup where he held on to 9,733,639 shares of the company’s stock. His holdings in Citigroup made up for 7.5% of his total portfolio as well as 0.32% of the company’s shares outstanding.
Over the past quarter Tepper increased his holdings 1.37% by purchasing 132,000 shares of the company’s stock. He bought these shares in the quarterly price range of $47.67 to $53.00, with an estimated average quarterly price of $50.56 per share. Since then the price per share has increased a slight 0.3%.
Tepper’s historical holding history:
Citigroup is a global financial services holding company, whose businesses provide consumers, corporations, governments and institutions with a range of financial services such as consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management.
Citigroup’s historical price, revenue and net income:
The analysis on Citigroup reports that the company’s revenue has been in decline over the past five years. It also notes that the company’s P/S ratio is nearing a 5-year high.
The top guru shareholders of Citigroup:
1. James Barrow: 21,670,855 shares, representing 0.71% of the company’s shares outstanding.
2. HOTCHKIS & WILEY: 11,578,455 shares, representing 0.38% of the company’s shares out.
3. Ken Fisher: 10,996,671 shares, representing 0.36% of the company’s shares outstanding.
The Peter Lynch Chart suggests that the company is currently undervalued:
Citigroup has a market cap of $153.99 billion. Its shares are currently being traded at around $50.77 with a P/E ratio of 12.80, a P/B ratio of 0.80 and a P/S ratio of 2.20.
Goodyear Tire & Rubber Co (GT)
The guru’s second largest position goes to Goodyear Tire & Rubber where he holds on to 18,843,154 shares. This position makes up for 6.7% of his total portfolio and 7.66% of the company’s shares outstanding.
During the third quarter Tepper reduced his holdings -14.35% by selling a total of 3,156,846 shares of the company’s stock. He sold these shares in the price range of $15.38 to $22.98, with an estimated average quarterly price of $19.14 per share. Since his sell the price per share has gone up about 11.8%.
Tepper’s historical holding history:
Goodyear Tire is a manufacturer of tires and rubber products. It also manufactures and markets several lines of power transmission belts, hoses and other rubber products for the transportation industry and various industrial and chemical markets, and rubber-related chemicals for various applications.
Goodyear Tire & Rubber’s historical revenue and net income:
The analysis on Goodyear reports that the company has issued $1.5 billion of debt over the past three years, its revenue has been in decline over the past year and its price is trading at a near 1-year high.
The top guru shareholders of Goodyear:
1. David Tepper: 18,843,154 shares, representing 7.66% of the company’s shares outstanding.
2. HOTCHKIS & WILEY: 5,579,814 shares, representing 2.27% of the company’s shares out.
3. Steven Cohen: 3,049,107 shares, representing 1.24% of the company’s shares outstanding.
The Peter Lynch Chart suggests that the company is currently overvalued:
Goodyear Tire & Rubber has a market cap of $5.29 billion. Its shares are currently trading at around $21.40 with a P/E ratio of 18.20, a P/S ratio of 0.30 and a P/B ratio of 11.60. The company had an annual average earnings growth of 10.80% over the past ten years.
United Continental Holdings (UAL)
Tepper’s third largest position goes to United Continental where he maintains 8,523,821 shares of the company’s stock. His holdings represent 4.2% of his total portfolio as well as 2.40% of the company’s shares outstanding.
During the third quarter Tepper upped his stake in United Continental Holdings. The guru increased his position 10.25% by purchasing 792,777 shares. He bought these shares in the third quarter price range of $27.71 to $36.25, with an estimated average quarterly price of $32.18 per share. Since then the price per share has grown an additional 15.8%.
Tepper’s historical holding history:
UAL is a holding company and its principal wholly owned subsidiaries are United and Continental. United's and Continental's operations consist primarily of the transportation of persons, property and mail throughout the United States and abroad.
United Continental’s historical revenue and net income:
The analysis on United Continental reports that the company’s price is at a 5-year high, its revenue has been in decline over the past five years and its P/S ratio is currently sitting at a 10-year high.
The top guru shareholders of UAL:
1. PRIMECAP: 9,776,795 shares, representing 2.75% of the company’s shares outstanding.
2. David Tepper: 8,523,821 shares, representing 2.4% of the company’s shares outstanding.
3. Brian Rogers: 7,500,000 shares, representing 2.11% of the company’s shares outstanding.
United Continental Holdings has a market cap of $13.49 billion. Its shares are currently trading at around $37.27 with a P/S ratio of 0.40 and a P/B ratio of 7.90.
Delta Air Lines (DAL)
The guru’s fourth largest stock goes to Delta Air Lines where he holds on to 8,400,000 shares of the company’s stock. His position represents 3.2% of his holdings and 0.98% of the company’s shares outstanding.
Over the duration of the third quarter Tepper cut his holdings -18.37% by selling 1,890,884 shares. He sold these shares in the quarterly price range of $18.41 to $24.01, with an estimated average quarterly price of $20.84 per share. Since then the price per share has increased a notable 32.8%.
Tepper’s historical holding history:
Delta Air Lines operates as an airline, providing scheduled air transportation for passengers and cargo throughout the United States and around the world.
Delta’s historical revenue and net income:
The top guru shareholders of DAL:
1. PRIMECAP: 16,163,700 shares, representing 1.88% of the company’s shares outstanding.
2. David Tepper: 8,400,000 shares, representing 0.98% of the company’s shares outstanding.
3. Ken Heebner: 5,250,000 shares, representing 0.61% of the company’s shares outstanding.
The Peter Lynch Chart suggests that the company is currently undervalued:
Delta Air Lines has a market cap of $23.71 billion. Its shares are currently trading at around $27.71 with a P/E ratio of 11.60, a P/S ratio of 0.60 and a P/B ratio of 173.30.
HCA Holdings (HCA)
Tepper’s fifth largest position goes to HCA Holdings where he owns 4,573,082 shares. His holdings represent 3.1% of his total assets managed as well as 1.02% of the company’s shares outstanding.
During the third quarter Tepper upped his holdings 16.57% by purchasing a total of 650,000 shares of the company’s stock. He bought these shares in the quarterly price range of $35.49 to $42.75, with an estimated average quarterly price of $39.07. Since his increase the price per share is up about 13.1%.
Tepper’s holding history as of the third quarter:
HCA Holdings owns and operates hospitals and related health care entities. The company's general, acute care hospitals provide a range of services to accommodate such medical specialties as internal medicine, general surgery, cardiology, oncology, neurosurgery, orthopedics, and obstetrics, as well as diagnostic and emergency services.
HCA Holdings’ historical revenue and net income:
The analysis on HCA Holdings reports that the company has issued $1.6 billion of debt over the past three years, its operating margin is expanding and its price is sitting near its 3-year high.
The top guru shareholders of HCA Holdings:
1. Larry Robbins: 10,341,713 shares, representing 2.31% of the company’s shares outstanding.
2. David Tepper: 4,573,082 shares, representing 1.02% of the company’s shares outstanding.
3. John Griffin: 3,790,000 shares, representing 0.85% of the company’s shares outstanding.
The Peter Lynch Chart suggests that the company is currently undervalued:
HCA Holdings has a market cap of $19.79 billion. Its shares are currently trading at around $44.20 with a P/E ratio of 14.10and a P/S ratio of 0.60. The company had an annual average earnings growth of 4.60% over the past ten years.
Check out the rest of David Tepper’s third quarter portfolio here.
Try a free 7-day premium membership trial here.
