"Tracking David Tepper’s Appaloosa Management Portfolio – Q3 2019 Update"
"David Tepper’s 13F portfolio value decreased from $9.26B to $3.41B this quarter.The two large leveraged positions in SPDR SP&500 and Invesco QQQ index ETFs thru Calls established last quarter were unwound this quarter.Alphabet, Facebook, Amazon, and Micron were all increased while adding Alibaba Group Holdings.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  filed on 11/14/2019. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q2 2019.This quarter, Tepper’s 13F portfolio value decreased from $9.26B to $3.41B. The decrease was primarily due to the disposal of huge nominal long positions thru Calls initiated last quarter in SPDR S&P 500 and Invesco QQQ Index ETFs. The number of holdings decreased from 26 to 24. The top-five individual stock positions are Alphabet, Facebook, Amazon, Altaba, and Micron Technology. To know more about Tepper's distress investing style, check out the book .Note: It was reported in May that Appaloosa is returning outside money and converting to a Family Office structure.New Stakes:Alibaba Group Holdings (BABA): BABA is a large 6.37% of the portfolio position established this quarter at prices between $154 and $183 and the stock currently trades at ~$187.Note: Alibaba is a frequently traded stock in Tepper’s portfolio. The most recent round-trip follow: a 5.23% BABA stake was established in Q1 2019 at prices between $131 and $187 and disposed last quarter at prices between $149 and $195.Broadcom Inc. (AVGO): AVGO is a 2.22% of the portfolio stake purchased this quarter at prices between $266 and $304 and the stock is currently at ~$315.Boeing Company (BA): BA is a minutely small 0.33% of the portfolio stake established during the quarter.Stake Disposals:SPDR S&P 500 ETF (SPY) Calls and Invesco QQQ ETF (QQQ) Calls: These two leveraged long positions thru Calls were established last quarter but disposed this quarter. The huge ~58% of the portfolio SPY Calls stake was purchased as the underlying traded between $275 and $296. It was disposed as the it traded between $284 and $302. It currently trades at $311. The ~17% QQQ Calls position was established as the underlying traded between $170 and $191 and eliminated as it traded between $181 and $195. It is now at $202.Centene Corp (CNC), Intelsat SA (I), and Qualcomm (QCOM) Calls: These are minutely small (less than ~0.10% of the portfolio each) stakes purchased last quarter but disposed this quarter.Stake Increases:Alphabet Inc. (GOOG) (GOOGL): GOOG is a ~16% of the portfolio position. It has been a significant presence in the portfolio since Q1 2012 and the original purchase was at prices between $290 and $325. The stake has wavered. Recent activity follow: Q3 2018 saw a ~40% selling at prices between $1103 and $1268 and that was followed with a ~25% reduction next quarter at prices between $976 and $1203. Last quarter saw a ~50% stake increase at prices between $1036 and $1288. That was followed with a stake doubling this quarter at prices between $1098 and $1250. The stock currently trades at ~$1295.Facebook Inc. (FB): FB is a top-three ~15% of the portfolio stake established in Q3 2016 at prices between $114 and $131 and increased by ~50% 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. There was a one-third reduction in Q3 2018 at prices between $160 and $218 and that was followed with a ~55% selling next quarter at prices between $123 and $169. Q1 2019 saw a ~40% stake increase at prices between $131 and $173. That was followed with a ~8% trimming last quarter. The stock is currently at $199. There was a ~50% stake increase this quarter at prices between $177 and $205.Note: FB has had 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.Amazon.com (AMZN): AMZN is a top three 13.47% of the portfolio position purchased in Q1 2019 at prices between $1500 and $1820. Last quarter saw a ~12% stake increase at prices between $1693 and $1963. The stock currently trades at ~$1746. There was a another ~43% stake increase this quarter at prices between $1725 and $2021.Altaba Inc. previously Yahoo: Altaba is a ~8% of the portfolio position. It was first purchased in Q3 2016 at prices between $37.50 and $44. Q1 2017 saw a ~60% increase at prices between $38.50 and $47 and that was followed with a ~130% increase in the following quarter at prices between $46 and $56. There was a ~90% increase in Q4 2017 at prices between $65 and $73. The stock is now at $69.53. Last year saw a combined ~75% reduction at prices between $55.50 and $81.50. There was a marginal increase in Q1 2019 and that was followed with a ~55% selling last quarter at prices between $59 and $79. This quarter saw a ~14x stake increase. Altaba shareholders received a pre-dissolution liquidating distribution of $51.50 in cash per share in September.Micron Technology (MU): MU was the largest position as of Q1 2019. The stake was built over the seven quarters thru Q2 2018 at prices between $16.50 and $65. Q3 2018 saw a ~11% trimming and that was followed with a ~55% selling next quarter at prices between $29 and $46. There was an about turn in Q1 2019: ~20% stake increase at prices between $29 and $44. Last quarter saw the position reduced to a minutely small 0.38% stake at prices between $31 and $44. The stock is now at $45.87. The stake was rebuilt this quarter to a large (top five) 7.53% of the portfolio position at prices between $39.50 and $51.PG&E Corp. (PCG): PCG is a 5.30% of the portfolio position. It was first purchased in Q4 2017 at prices between $44.50 and $70.75. Last year saw a combined ~500% stake increase at prices between $23 and $49. The stock currently trades well below those ranges at $7.31. There was a ~260% stake increase in Q1 2019 at prices between $6.25 and $24.50. Last quarter saw a ~28% selling at prices between $17 and $24. There was a ~8 % stake increase this quarter.Note: PG&E filed for Chapter 11 bankruptcy protection in January and a few hedge funds stepped in to purchase shares as the stock price crashed.Energy Transfer LP (ET): Energy Transfer Partners merged with Energy Transfer Equity and the resulting entity was renamed Energy Transfer LP (ET). The transaction closed in January and terms were 1.28 shares of ETE for each ETP. Tepper held shares in both and those got converted to ET shares. Last two quarters had seen a combined ~24% selling while this quarter saw a marginal increase.Adobe Inc. (ADBE): ADBE is a small 1.66% of the portfolio position that saw a ~80% stake increase during the quarter at prices between $273 and $311. The stock currently trades at $299.Stake Decreases:UnitedHealth (UNH): UNH is a 1.59% portfolio position built during the four quarters thru Q1 2018 at prices between $213 and $249. Last three quarters of 2018 had seen a combined ~65% selling at prices between $217 and $287. There was a one-third increase last quarter at prices between $217 and $252 while this quarter saw a ~25% selling at prices between $215 and $267. The stock is currently at ~$277.Clearway Energy (CWEN), Mr. Cooper (COOP) previously WMIH, Humana Inc. (HUM), and SPDR Oil & Gas (XOP): These small positions (less than ~1% of the portfolio each) were reduced during the quarter.Kept Steady:Allergan plc (AGN): AGN is a large 6.38% of the portfolio stake. It was built over the five quarters thru Q4 2016 at prices between $188 and $323. The pattern reversed in Q1 2017: ~30% selling at prices between $210 and $250 and that was followed with another ~15% reduction the following quarter at prices between $219 and $249. There was another ~25% selling in Q3 2017 at prices between $203 and $256. The pattern reversed again in Q4 2017: ~85% increase at prices between $164 and $211. Q3 2018 saw a ~40% selling at prices between $167 and $193 and that was followed with a similar reduction next quarter at prices between $130 and $194. There was a ~175% stake increase in Q1 2019 at prices between $132 and $161. That was followed with a ~60% selling last quarter at prices between $116 and $168. The stock currently trades at ~$184.Note: Abbvie (ABBV) is buying Allergan in a cash-and-stock deal ($120.30 cash and 0.866 shares of ABBV for each share of AGN held) announced in June.Caesars Entertainment (CZR): The ~4% CZR stake was established in Q4 2017 and more than doubled next quarter at prices between $10.50 and $14.50. Q2 2018 also saw a ~25% increase at prices between $10.50 and $13.20. The stock is currently at ~$13. There was a combined ~15% selling in H2 2018 and that was followed with a minor increase in Q1 2019. Last quarter saw a ~20% trimming.Note: Eldorado Resorts (ERI) is buying Caesars in a cash-and-stock deal announced in June ($8.40 cash and 0.0899 ERI shares for each share of CZR held).Alps Alerian MLP ETF (AMLP): The ~1.75 % portfolio stake in AMLP was established in Q4 2018 at prices between $8.30 and $11 and it currently trades just below that range at $7.97. There was a ~6% stake increase in Q1 2019 while last quarter saw a ~13% trimming.T-Mobile US (TMUS): TMUS is a 1.61% of the portfolio position purchased in Q4 2017 at prices between $55 and $64.50 and the stock is currently at $78.59. Q3 2018 saw a one-third selling at prices between $58 and $71 and that was followed with a ~60% reduction next quarter at prices between $60.80 and $70.50. H1 2019 had seen another one-third selling at prices between $65 and $78.Vistra Energy (VST): The 1.35 % VST position was established in Q2 2018 at prices between $19.50 and $24.50 and increased by ~30% in Q4 2018 at prices between $21 and $25.50. H1 2019 had seen a one-third selling at prices between $22 and $27. The stock currently trades at $26.53.Salesforce.com (CRM), Caesars Entertainment Notes and Cheniere Energy (LNG): These small positions (less than ~1% of the portfolio each) were kept steady during the quarter.The spreadsheet below highlights changes to Tepper’s 13F stock holdings in Q3 2019:6/25/2019 – per , Tepper’s Allergan stake is at  a cost-basis of $160.61."