"Tracking David Tepper’s Appaloosa Management Portfolio – Q4 2020 Update"
"David Tepper’s 13F portfolio value increased from $5.66B to $6.69B this quarter.Appaloosa substantially increased Amazon and Microsoft while reducing PG&E and dropping AT&T.T-Mobile US, Amazon, Micron Technology, Facebook, and PG&E Corp are the five largest positions.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 2/16/2021. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q3 2020.This quarter, Tepper’s 13F portfolio value increased ~18% from $5.66B to $6.69B. The number of holdings increased from 31 to 44. The top five positions are T-Mobile US, Amazon, Micron Technology, Facebook, and PG&E Corp. They add up ~45% of the portfolio. To know more about Tepper's distress investing style, check out the book .New Stakes:Occidental Petroleum (OXY): OXY is a ~2% of the portfolio stake established this quarter at prices between ~$8.90 and ~$21.30 and the stock currently trades well above that range at $31.23.Qualcomm (QCOM) and SPDR Energy ETF (XLE): QCOM is a 1.37% of the portfolio position established this quarter at prices between ~$116 and ~$159 and the stock currently trades at ~$130. The 1.77% XLE stake was purchased at prices between $27.70 and $41.60 and it is now at $52.95.Note: Qualcomm is back in the portfolio after a quarter’s gap. It is a frequently traded stock in Tepper’s portfolio.Macys Inc. (M), CarMax Inc. (KMX), Kohls Corp (KSS), Enterprise Product Partners (EPD), SPDR S&P Oil & Gas ETF (XOP), and iShares MSCI South Korea ETF (EWY): These are very small (less than ~1% of the portfolio each) new stakes purchased this quarter.Alliance Data Systems (ADS), EQT Corp (EQT), Freeport McMoran (FCX), MPLX LP (MPLX), Magellan Midstream (MMP), Dragoneer Growth Opportunity (DGNR), and Kinder Morgan (KMI): These are minutely small (less than ~0.5% of the portfolio each) new positions established this quarter.Stake Disposals:AT&T Inc. (T): T is a 2.33% of the portfolio stake established in Q2 2020 at prices between $27.50 and $33.23. Last quarter saw a ~50% selling at prices between ~$28 and ~$31. The disposal this quarter was at prices between $26.50 and $31.50. The stock is now at $29.62.Altria Group (MO) and Boston Scientific (BSX): These two very small (less than ~1% of the portfolio each) stakes were eliminated during the quarter.Stake Increases:Amazon.com (AMZN): The large (top three) 9.63% AMZN stake was purchased in Q1 2019 at prices between $1500 and $1820. The next three quarters saw a ~75% stake increase at prices between $1690 and $2020. There was a ~50% selling over the last three quarters at prices between ~$1677 and ~$3531. This quarter saw an about turn: ~40% stake increase at prices between ~$3005 and ~$3444. The stock currently trades at ~$3000.Facebook Inc. (FB): FB is a top-five 8.21% 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 had since wavered. Recent activity follows. Last three quarters had seen a ~40% selling at prices between $146 and $304. The stock is currently at ~$264. This quarter saw a ~14% stake increase.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.Twitter Inc. (TWTR): TWTR is a 3.85% of the portfolio stake purchased in Q1 2020 at prices between $22 and $39 and the stock currently trades well above that range at ~$67. Last quarter saw a ~15% trimming while this quarter there was a marginal increase.HCA Healthcare (HCA): HCA is a 2.46% of the 13F portfolio position built in H1 2020 at prices between $82 and $118. The stock is now well above that range at ~$184. Last quarter saw a ~11% trimming while this quarter there was a ~7% increase.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 last January, and terms were 1.28 shares of ETE for each ETP. Tepper held shares in both and those got converted to ET shares. There was a stake doubling in Q4 2019 at prices between $11 and $13. Next quarter saw another ~45% stake increase at prices between $4.55 and $13.75. Last two quarters also saw a ~60% stake increase at prices between $5.11 and $7.15. The stock is now at $8.15 and the stake is at 2.22% of the portfolio.Salesforce.com (CRM): CRM is a 1.83% of the portfolio position established in H1 2019 at prices between $124 and $193 and the stock currently trades at ~$211. There was a ~12% trimming last quarter. This quarter saw a ~25% stake increase at prices between ~$220 and ~$267.Microsoft (MSFT): The 1.83% MSFT stake was built in H1 2020 at prices between $152 and $232. This quarter also saw a ~80% stake increase at prices between ~$202 and ~$225. The stock currently trades at ~$232.Adobe Inc. (ADBE): ADBE is a 1.50% of the portfolio position that saw a ~80% stake increase in Q3 2019 at prices between $273 and $311. Last five quarters have seen a zig-zag trading pattern with the net holding remaining steady at ~200K shares. The stock currently trades at ~$441.Alps Alerian MLP ETF (AMLP), Tenneco Inc. (TEN), UnitedHealth (UNH), and Western Midstream Partners (WES): These small (less than ~1% of the portfolio each) stakes saw increases this quarter.Stake Decreases:T-Mobile US (TMUS): TMUS is currently the largest position at ~10% of the portfolio. A fairly large stake was purchased in Q4 2017 at prices between $55 and $64.50. The four quarters thru Q1 2019 saw the position sold down at prices between $58 and $78. The position was rebuilt in Q2 2020 at prices between $82 and $110. The stock is now at ~$125. Last quarter saw a ~30% selling at prices between $104 and $119. There was a minor ~5% further trimming this quarter.Note: 1.55M shares of the increase in Q2 2020 were thru Rights exercise as the company issued a Rights offering for up to 19.75M shares in June. Also, a small part of the increase was due to the merger with Sprint (S) that closed in April. Tepper had a 6.4M share position in Sprint for which he received ~600K shares.Micron Technology (MU): The current ~9% top five MU stake was built in Q3 2019 at prices between $39.50 and $51. There was a one-third stake increase in Q4 2019 at prices between $42 and $55.50. Last three quarters had also seen a ~50% stake increase at prices between ~$34.50 and ~$60. There was a one-third selling this quarter at prices between ~$46.50 and ~$73.50. The stock currently trades at ~$89.Note: MU is a frequently traded stock in Tepper’s portfolio. It 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. Q2 2019 saw the position reduced to a minutely small 0.38% stake at prices between $31 and $44.PG&E Corp. (PCG): The large (top five) ~8% PCG stake was first purchased in Q4 2017 at prices between $44.50 and $70.75. Next year saw a combined ~500% stake increase at prices between $23 and $49. There was a ~260% stake increase in Q1 2019 at prices between $6.25 and $24.50 and that was followed with a ~28% selling next quarter at prices between $17 and $24. Q1 2020 also saw a one-third selling at prices between $7.25 and $18. That was followed with a ~20% reduction next quarter at prices between $8.87 and $12.53. Last quarter saw a huge stake built at prices between $8.60 and $10. There was a ~50% selling this quarter at prices between ~$9.50 and ~$12.85. The stock is now at $10.85.Alphabet Inc. (GOOG) (GOOGL): GOOG is a large 6.67% of the portfolio stake. 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 follows: Last three quarters had seen a ~40% reduction at prices between ~$1054 and ~$1717. The stock currently trades at ~$2109. There was marginal trimming this quarter.Alibaba Group Holdings (BABA): The 6.61% BABA stake was established in Q3 2019 at prices between $154 and $183 and increased by ~85% next quarter at prices between $162 and $217. The stock currently trades at ~$234. There was a ~50% stake increase in Q2 2020 at prices between $187 and $229 while last quarter there was a one-third reduction at prices between ~$216 and ~$298. That was followed with a ~15% trimming this quarter.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 next quarter at prices between $149 and $195.Visa Inc. (V), MasterCard (MA), PayPal (PYPL), and Walt Disney (DIS): These three positions were established in Q2 2020. The ~2% Visa stake was established at prices between $152 and $200 and the stock currently trades at ~$215. Last quarter saw a ~20% selling at prices between ~$189 and ~$217. There was a ~9% trimming this quarter. MA is a 2.15% of the portfolio position purchased at prices between $229 and $313 and it is now at ~$361. There was a ~20% reduction last quarter at prices between ~$290 and ~$366. That was followed with a ~9% trimming this quarter. The 1.84% PYPL stake was established at prices between $91 and $177 and it currently goes for ~$239. Last quarter saw a ~30% selling at prices between $170 and $211. That was followed with a ~14% trimming this quarter. DIS is a ~2% position purchased at prices between $94 and $127 and it currently trades at ~$190.  There was a ~25% reduction last quarter at prices between $112 and $136. That was followed with a ~15% trimming this quarter.Note: Walt Disney is a frequently traded stock in Tepper’s portfolio.Netflix Inc. (NFLX): The ~1% NFLX stake was established in Q2 2020 at prices between ~$300 and ~$390. Last quarter saw a ~10% trimming. The stock is now at ~$516. There was a ~3% trimming this quarter.Emerson Electric (EMR), Goodyear Tire & Rubber (GT), Square Inc. (SQ), Sysco Corp (SYY), and Wells Fargo (WFC): These small (less than ~1.5% of the portfolio each) stakes were reduced during the quarter.Kept Steady:Enable Midstream (ENBL): The minutely small 0.02% stake in ENBL was kept steady this quarter.The spreadsheet below highlights changes to Tepper’s 13F stock holdings in Q4 2020:Regulatory filings thru 11/21/2020: None."