David Tepper's Strategic Emphasis on Alibaba in Q1 2024 Shakes Up Investment Landscape

Appaloosa LP releases 1st-quarter portfolio

Summary
  • Tepper's firm boosted its holding in Alibaba.
  • It also entered a new position in Adobe.
  • The firm trimmed its holdings in Uber, Meta and Nvidia.
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Appaloosa Management's Latest 13F Filing Highlights Major Moves in Tech and Chinese Markets

David Tepper (Trades, Portfolio), the esteemed founder of Appaloosa Management, has once again made headlines with his strategic investment choices in the first quarter of 2024. Known for his keen market insights and high returns, Tepper's recent 13F filing reveals significant adjustments in his portfolio, particularly with a substantial increase in Alibaba Group Holding Ltd. Operating from Miami Beach, Florida, Tepper's firm specializes in distressed debt but also holds substantial equity positions across various sectors globally.

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Summary of New Buys

David Tepper (Trades, Portfolio)'s portfolio welcomed six new stocks in this quarter:

  • Adobe Inc (ADBE, Financial) emerged as the top new addition with 350,000 shares, valued at approximately $176.61 million, making up 2.61% of the portfolio.
  • iShares China Large-Cap ETF (FXI, Financial) followed, with Tepper acquiring 6,375,000 shares, which represent 2.27% of the portfolio, totaling around $153.45 million.
  • JD.com Inc (JD, Financial) was also a notable addition with 3,649,863 shares valued at approximately $99.97 million, accounting for 1.48% of the portfolio.

Key Position Increases

Tepper's strategy included bolstering positions in six stocks, with significant emphasis on Chinese holdings:

  • Alibaba Group Holding Ltd (BABA, Financial) saw an impressive addition of 6,900,000 shares, increasing the total to 11,250,000 shares. This adjustment marks a 158.62% increase in share count and a 7.39% impact on the current portfolio, with a total value of $814.05 million.
  • PDD Holdings Inc (PDD, Financial) also saw a substantial increase, with an additional 1,325,000 shares bringing the total to 2,100,000 shares. This represents a 170.97% increase in share count, valued at $244.13 million.

Summary of Sold Out Positions

During the first quarter of 2024, David Tepper (Trades, Portfolio) exited positions in seven stocks:

  • HCA Healthcare Inc (HCA, Financial) was completely sold off with all 117,198 shares liquidated, impacting the portfolio by -0.55%.
  • FMC Corp (FMC, Financial) also saw a complete exit with 325,000 shares sold, resulting in a -0.35% portfolio impact.

Key Position Reductions

Tepper reduced his stakes in 13 stocks, with significant cuts in major tech companies:

  • Uber Technologies Inc (UBER, Financial) saw a reduction of 4,640,000 shares, a -77.33% decrease, impacting the portfolio by -4.93%. The stock traded at an average price of $71.78 during the quarter.
  • Meta Platforms Inc (META, Financial) was reduced by 727,500 shares, a -39.32% decrease, impacting the portfolio by -4.45%. The stock's average trading price was $446.07 during the quarter.

Portfolio Overview

As of the first quarter of 2024, David Tepper (Trades, Portfolio)'s investment portfolio included 39 stocks. The top holdings were notably concentrated in technology and Chinese market sectors, with Alibaba Group Holding Ltd (BABA, Financial) making up 12.05% of the portfolio, followed by Amazon.com Inc (AMZN, Financial) at 10.22%, and Microsoft Corp (MSFT, Financial) at 8.72%. Other significant holdings included Meta Platforms Inc (META) and NVIDIA Corp (NVDA, Financial).

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Tepper's latest moves reflect a strategic adjustment towards Chinese equities and major tech firms, indicating a bullish outlook on these sectors amidst global market fluctuations. Investors and market watchers will undoubtedly keep a close eye on Appaloosa's activities as they unfold in the upcoming quarters.

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Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.