"Tracking David Tepper’s Appaloosa Management Portfolio – Q1 2015 Update"
"David Tepper’s US long equity portfolio increased from $4.05B to $5.70B this quarter.General Motors is by far the largest individual stock position at ~12% of the portfolio.Appaloosa established huge positions in QQQ and SPY Calls during the quarter.This article is part of a series that provides an ongoing analysis of the changes made to David Tepper’s US stock portfolio on a quarterly basis. It is based on Appaloosa Management’s regulatory  filed on 05/15/2015. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q4 2014.This quarter, Tepper’s US long equity portfolio increased ~41% from $4.05B to $5.70B. This is an about-turn as there was a similar reduction last quarter. The number of holdings increased from 28 to 38 as several new positions were added. Also, Tepper added huge leveraged bets on S&P 500 and Nasdaq 100 indexes by purchasing calls on those two index ETFs: the nominal values of those two positions add up to 23.63% of the portfolio. The top-five individual stock positions are General Motors & Calls (12.65%), Google Inc. & Calls (7.73%), HCA Holdings (6.47%), Priceline Group (6.29%), and Goodyear Tire & Rubber (4.74%). Combined, they account for ~37% of the entire 13F holdings.New Stakes:JetBlue Airways (JBLU) & Micron Technology (MU): These are small (less than 2% of the portfolio each) stakes established this quarter. JBLU was established at prices between $14.38 and $19.58 and the stock currently trades at $20.18. MU was purchased at prices between $26.57 and $35 and the stock is currently at $26.90.Powershares QQQ Trust (QQQ) Calls: QQQ Calls are a fairly large 7.25% (nominal value) of the US long portfolio position established this quarter. QQQ traded between $100 and $109 during the period. It currently trades at $111.D R Horton Inc. (DHI), Lennar Corporation (LEN), Mohawk Industries (MHK), Regions Financial (RF), USG Corporation (USG), and United Rentals (URI): These are very small (less than ~1% of the portfolio each) stakes established this quarter.Stake Disposals:American Airlines (AAL): AAL was Tepper’s second-largest position at 7% of the US long portfolio as of Q2 2014. The position was established when the newly merged airline (US Airways & American Airlines) started trading in Q4 2013 - Tepper bought into US Airways in Q1 2012 at much lower prices. The stake was increased by ~23% in Q1 2014 at prices between $25 and $39 and an additional 35% in the next quarter at prices between $33.37 and $44.55. In Q3 2014, the pattern reversed as the position was sold down by 38% at prices between $35 and $43.86. Last quarter saw an additional 40% reduction at prices between $28.58 and $53.63 and this quarter saw the elimination at prices between $46.53 and $55.76. The stock currently trades at $42.47. Tepper harvested huge gains from this position.American Realty Capital Properties (ARCP): ARCP is a very small 0.65% of the US long portfolio stake established last quarter at prices between $7.70 and $12.48 and eliminated this quarter at prices between $8.92 and $10.10. The stock currently trades at $9.21.Stake Increases:Delta Airlines (DAL):  DAL is a 3.68% stake that was increased by around 17% in Q3 2014 at prices between $35.61 and $40.93. Last quarter saw a ~57% reduction at prices between $30.90 and $49.23. This quarter saw an about-turn: ~45% increase at prices between $43.42 and $50.70. The stock currently trades at $43.75.General Motors (GM): GM is Appaloosa’s largest 13F individual stock position at 12.06% of the US long portfolio. Q1 2014 saw a ~60% increase at prices between $34 and $41 and the following quarter the position was increased by another two-thirds at prices between $32 and $37.This quarter saw a ~25% increase at prices between $32.62 and $38.87. The bulk of the original stake was purchased in Q1 2012 and Q2 2012 at prices between $21 and $27. The stock currently trades at $35.58.Huntsman Corporation (HUN): HUN is a 3.44% of the US long portfolio position that has been in the portfolio since Q1 2012. Just over 5M shares were purchased at that time for around $13 per share. The stake is now at 8M shares and the stock trades at $22.73. This quarter saw a roughly one-third increase at prices between $21.26 and $24.40.Owens Corning (OC): The original OC stake was established in Q1 2012 & Q2 2012 at prices between $29 and $37. Last quarter saw a ~14% reduction at prices between $29 and $36.80. This quarter saw a marginal increase and the stake is at 2.23%. The stock currently trades at $40.49.SPDR S&P 500 ETF (SPY) & Calls: SPY was the largest position at 22% of the US long portfolio in Q1 2014. The stake was drastically reduced in Q2 2014 from 22% to 3.84%. Last quarter, the remaining stake was almost eliminated at prices between $186 and $209. This quarter saw a huge reversal: huge increase to a 16.38% portfolio stake (nominal) using SPY Calls. SPY traded between $199 and $212 during the quarter and currently trades at $214.Eastman Chemical (EMN) and HD Supply Holdings ((HDS): These two small positions were increased substantially this quarter. EMN stake was increased by ~92% at prices between $68.64 and $76.48. The stock currently trades at $78.13. HDS position was increased by ~118% at prices between $27.02 and $31.41 and it currently trades at $33.57. The stakes are still small at 1.11% and 1.55% of the US long portfolio for EMS and HDS respectively.Triumph Group (TGI): TGI is a very small 0.87% of the portfolio stake. It was increased by ~10% this quarter at prices between $53.96 and $67.22 and the stock currently trades at $69.15. The bulk of the position was originally purchased in Q1 2014 at prices between $62 and $79.Stake Decreases:Chicago Bridge & Iron (CBI): CBI has been in the portfolio since Q2 2013. Around 1.5M shares were purchased for around $56 at that time. The stake had since been sold down to 1.23M shares (1.43% of the US long portfolio) as of Q1 2014. In Q2 2014, the position was increased by ~22% at prices between $65.51 and $87.65 and Q3 2014 saw another ~10% increase at prices between $57.85 and $70. Last quarter, the stake saw a ~18% reduction at prices between $37.78 and $57.85 and this quarter the pattern continued with a ~11% reduction at prices between $34.51 and $49.48. The stock currently trades at $57.48.Goodyear Tire & Rubber (GT): GT is a very long-term position that has been in the portfolio since before the financial crisis. In 2007, the stake stood at 2.7M shares (~5% of portfolio). The position size peaked at 22M shares in Q2 2013 when a large increase happened at prices between $12 and $15.50. The stake has been sold down since. Last two quarters have seen a ~13% reduction at prices between $20 and $29. The stock currently trades at $31.89. Tepper is harvesting large long-term gains from this position.Google Inc. (GOOG) (GOOGL): GOOG is Appaloosa’s second-largest individual stock position at 7.73% of the US long portfolio. The stake was increased by 87% in Q1 2014 at prices between $550 and $610 (split-adjusted). It was increased by 22% in Q2 2014 as well at prices between $510 and $579. Last quarter saw an about-turn as around 19% of the position was sold at prices between $495 and $577 and this quarter saw a further ~8% reduction at prices between $493 and $575. The stock currently trades at $543. GOOG has been a significant presence in the portfolio since Q1 2012. The original purchase was at prices between $290 and $325.HCA Holdings (HCA): HCA became a significant position in the portfolio in Q4 2012 when over 4M shares were purchased in the low-30s price-range. It currently trades at $81.59 and the stake is close to 5M shares. It is the third-largest individual stock position at 6.47% of the US long portfolio. Last two quarters have seen minor selling. Tepper is sitting on large long-term gains.Lorillard Inc. (LO): LO is a ~1% of the US long portfolio position established in Q3 2014 at prices between $59 and $67. Last quarter saw a ~24% reduction at prices between $58 and $64 and this quarter saw another ~22% decrease at prices between $62 and $70. The stock currently trades at $72.Note: On July 15, 2014 Reynolds American (RAI) agreed to acquire LO in a cash-and-stock deal valued at $24B ($50.50 cash and 0.2909 in RAI stock). Shareholders approved the deal in January.Masco Corporation (MAS): The original MAS stake was almost doubled in Q2 2014 at prices between $19.54 and $22.89. Q3 2014 saw a ~6% reduction at prices between $20.27 and $24.44 and last quarter saw a further ~21% reduction at prices between $20.86 and $25.40. This quarter saw a minor ~6% reduction. The stock currently trades at $27.81.NXP Semiconductors (NXPI): NXP is a 3.22% of the US long portfolio position established in Q3 2014 at prices between $60.50 and $73.01 and reduced by ~22% this quarter at prices between $72 and $108. The stock currently trades at $107.Note: In March, NXP agreed to acquire Freescale Semiconductor (FSL). NXP has returned just over 40% so far this year. Meanwhile FSL is up almost 70%.Priceline Group Inc. (PCLN): PCLN is a large (top-five) 6.29% of the US long portfolio position established in Q1 2014 at prices between $1113 and $1370. In Q2 2014, the stake was increased by over 70% at prices between $1108 and $1292 and Q3 2014 saw a further ~16% increase at prices between $1154 and $1309. Last quarter, there was an about-turn as the position was reduced by ~14% at prices between $1040 and $1206. This quarter saw minor selling. The stock currently trades at $1213.United Continental Holdings (UAL): The large 4.68% of the US long portfolio UAL stake saw a ~19% reduction this quarter at prices between $63.83 and $73.62. The bulk of the original stake was established in Q1 2012 at prices between $18.21 and $25. The stock currently trades at $54.13. Tepper is starting to harvest huge long-term gains from this position.Whirlpool Corporation (WHR): The large ~4% of the US long portfolio position was almost doubled in Q3 2014 at prices between $139 and $156. Q1 2014 had seen a 125% increase at prices between $127 and $159. Last quarter saw a ~15% reduction at prices between $140 and $194 and this quarter the position was reduced by another one-third at prices between $187 and $215. The stock currently trades at $192. Appaloosa is harvesting huge gains from this position.Axial Corporation (AXLL), KBR Inc. (KBR), Ryland Group (RYL), and Terex Corporation (TEX): These are very small positions (less than ~1% of the US long portfolio) that were reduced further this quarter.Kept Steady:None.Appaloosa’s 13F portfolio also has minutely small stakes in Bank of America (BAC) and General Motors Warrants.The spreadsheet below highlights changes to Tepper’s US stock holdings in Q1 2015:"