Thu. Sep 21st, 2023
Tepper's Appaloosa bets big on technology and semiconductor stocks

David Tepper’s Appaloosa management made a slew of major tech stock purchases in the second quarter, swelling the hedge fund’s holdings to $5.4 billion from $1.9 billion, according to a recent 13F filing.

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  • Appaloosa Management tripled its equity stake to $5.4 billion in the second quarter.
  • David Tepper’s hedge fund has made large-scale purchases across the technology and semiconductor sectors, with a particular focus on companies based in China.
  • All told, Appaloosa Management entered nearly 20 new positions last quarter.
  • Tepper has also consolidated his existing positions at Alibaba, Amazon, Meta Platforms, Microsoft, and more.
  • The hedge fund has downsized positions at a number of energy companies, and exited positions at Tesla, Disney, Salesforce and HCA Healthcare, among others.

Major purchases across technology and semiconductors

Among the fund’s largest purchases in the three months ending in June this year were 2.3 million shares of Advanced Micro Devices Inc. (AMD) valued at about $263 million, about 6.8 million shares of Intel Corp. (INTC) worth $226.6 million, and 480,000 shares of Apple Inc. (AAPL) with a value of more than 93 million dollars.

Tepper has bought the positions of several leading semiconductor makers as well. The fund purchased approximately 1.9 million shares of Qualcomm Inc. (QCOM) valued at $220 million, approximately 1.8 million shares of Taiwan Semiconductor Industry Co., Ltd. (TSM) worth $179 million, and approximately 1.8 million shares of Marvell Technology Inc. (Morley) with a value of 104.6 million dollars.

The new positions also include $104 million at Broadcom Inc. (AVGO), in the amount of $88 million to Micron Technology Inc. (in($58 million in ASML Holding)ASML(Stocks and stakes in Arista Networks)Anita) and Cadence Design Systems Inc. (CDNS), Lam Research Corp. (LRCX) and Synopsys (SNPS).

4.8 million Southwestern Energy shares were among the few new non-tech jobs (Noise).

New positions at Appaloosa include several Chinese companies. The company purchased 1.3 million shares, or $174.6 million worth, of Baidu Inc. (beginning), 750,000 shares of PDD Holdings Inc. (PDD) valued at approximately $52 million, and 1.9 million shares of Inc. (Dinar) worth $64 million, for example. Tepper has also entered positions in China-focused ETFs by iShares and KraneShares.

Appaloosa has modified several positions

Appaloosa also made several additions to its existing stakes last quarter. The company bought about 2.2 million shares in Alibaba Group Holding Ltd. (Baba), bringing its total shares to 4.8 million shares, with a value of approximately $373 million. It also added approximately 1.2 million shares of Inc. (AMZN) with a new total of over $412 million.

Tepper’s hedge fund has doubled its position on Meta Platforms Inc. (meta) adding more than 800 thousand shares. It purchased nearly 1 million more shares of Microsoft Corp. (MSFT), about 900,000 shares of NVIDIA Corp. (NVDA), and 1.2 million shares of Uber Technologies Inc. (Uber).

Smaller additions include Alphabet Inc. (Google), Antero Resources Corp. (AR), Caesars Entertainment Inc. (CZR), FedEx Corp. (FDX) and UnitedHealth Group Inc. (United nations).

Appaloosa also downgraded its positions in a number of energy companies. Cut positions at Constellation Energy Corp. (CEG), Chesapeake Energy Corp. (CHK), LP energy transfer (ETEnterprise Products Partners LP (EPD) and MPLX LP (MPLX).

Outside of energy, the company sold 1 million shares of Macy’s Inc. (M) and approximately 500,000 shares of EQT Corp. (EQT) during the quarter.

Tepper exits ETFs and positions at Disney, Tesla, and more

During the second quarter, Appaloosa exited its $31 million position in Tesla Inc. (TSLA), her $30 million stake in The Walt Disney Company (dis), Salesforce Inc. amounting to $58 million.CRM) holdings. I also exited positions at HCA Healthcare (HCA), set match (MTCH) and Sysco Corp. (a reason).

Additionally, Tepper exited its positions in ETFs from ARK Invest and ALPS.

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