"Tracking David Tepper’s Appaloosa Management Portfolio – Q2 2021 Update"
"David Tepper’s 13F portfolio value decreased from $6.96B to $4.83B this quarter.Appaloosa added Uber Technologies & Pulte Group while dropping Adobe, Walt Disney, and Salesforce.com. Most of the top positions were reduced as well.Micron Technology, Amazon, Facebook, Alphabet, and T-Mobile US 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 8/16/2021. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q1 2021.This quarter, Tepper’s 13F portfolio value decreased ~30% from $6.96B to $4.83B. The number of holdings decreased from 58 to 50. The top five positions are Micron Technology, Amazon, Facebook, Alphabet, and T-Mobile US. They add up to ~43% of the portfolio. To know more about Tepper's distress investing style, check out the book .New Stakes:Uber Technologies (UBER) and Pulte Group (PHM): These are medium-sized new positions established this quarter. UBER is a 2.11% of the portfolio stake purchased at prices between ~$44 and ~$61 and the stock currently trades below that range at $40.35. The 1.70% PHM position was established at prices between ~$53 and ~$62 and it is now below that range at $48.48.The Beachbody Company (BODY) and TCV Acquisition (TCVA): These are minutely small (less than 0.5% of the portfolio each) positions established during the quarter.Stake Disposals:PayPal (PYPL) and Walt Disney (DIS): The 0.61% PYPL stake was established in Q2 2020 at prices between $91 and $177. Next quarter saw a ~30% selling at prices between $170 and $211. That was followed with a ~70% selling over the last two quarters at prices between ~$180 and ~$305. The disposal this quarter was at prices between ~$240 and ~$294. The stock currently trades at ~$287. DIS was a 0.91% position purchased at prices between $94 and $127.  There was a ~25% reduction in Q3 2020 at prices between $112 and $136. That was followed with a ~60% selling over the last two quarters at prices between ~$118 and ~$202. The elimination this quarter was at prices between ~$169 and ~$190. It is currently at ~$186.Note: Walt Disney is a frequently traded stock in Tepper’s portfolio.Salesforce.com (CRM): CRM was a 1.17% of the portfolio position established in H1 2019 at prices between $124 and $193. Q4 2020 saw a ~25% stake increase at prices between ~$220 and ~$267 while last quarter there was similar selling at prices between ~$205 and ~$249. The position was sold out this quarter at prices between ~$211 and ~$246. The stock is now at ~$261.Adobe Inc. (ADBE): ADBE is a ~1% of the portfolio position that saw a ~80% stake increase in Q3 2019 at prices between $273 and $311. The five quarters through Q4 2020 had seen a zig-zag trading pattern with the net holding remaining steady at ~200K shares. There was a ~28% selling last quarter at prices between ~$421 and ~$502. The position was disposed this quarter at prices between ~$472 and ~$591. The stock currently trades at ~$662.Baidu Inc. (BIDU), CC Neuberger II (PRPB), Discovery Inc. (DISCA), Hennessy Capital V (HCIC) Units, Iqiyi (IQ), Liberty Media Acquisition (LMACA) Units, Shopify (SHOP), and SVF Investment (SVFA) Units: These very small (less than ~0.5% of the portfolio each) positions were disposed this quarter.Stake Increases:Freeport McMorran (FCX) and Mosaic Inc. (MOS): These two small stakes saw substantial buying this quarter. The 1.54% FCX position was purchased over the last three quarters at prices between ~$15 and ~$45. The stock is now at $34.81. MOS is a 1.63% of the portfolio stake built over the last two quarters at prices between ~$23.50 and ~$37.50 and it is now at $31.57.Stake Decreases:Micron Technology (MU): MU is currently the largest position in the portfolio at 9.94%. The 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. The next three quarters had also seen a ~50% stake increase at prices between ~$34.50 and ~$60. There was a ~55% selling over the last three quarters at prices between ~$47 and ~$96. The stock currently trades at $72.87.Note: MU is a frequently traded stock in Tepper’s portfolio.Amazon.com (AMZN): The large (top three) 8.90% 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 from Q1-Q3 2020 at prices between ~$1677 and ~$3531. Q4 2020 saw an about turn: ~40% stake increase at prices between ~$3005 and ~$3444. There was a ~37% selling over the last two quarters at prices between ~$2952 and ~$3505. The stock currently trades at ~$3484.Facebook Inc. (FB): FB is a top-three 8.67% 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. Recent activity follows. Q1-Q3 2020 had seen a ~40% selling at prices between $146 and $304. Q4 2020 saw a ~14% stake increase while the last two quarters saw a ~40% selling at prices between ~$246 and ~$356. The stock is currently at ~$378.Note: FB has seen 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.Alphabet Inc. (GOOG) (GOOGL): GOOG is a large (top five) 7.57% 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: Q1-Q3 2020 saw a ~40% reduction at prices between ~$1054 and ~$1717. That was followed with a ~43% reduction over the last two quarters at prices between ~$1736 and ~$2546. The stock currently trades at ~$2898.T-Mobile US (TMUS): TMUS is currently at 7.55% 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. Next quarter saw a ~30% selling at prices between $104 and $119. That was followed with a ~52% reduction over the last three quarters at prices between ~$110 and ~$147. The stock is now at ~$131. They are harvesting gains.Note: 1.55M shares of the increase in Q2 2020 were through 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. Appaloosa had a 6.4M share position in Sprint for which they received ~600K shares.Occidental Petroleum (OXY): OXY is a 3.70% of the portfolio stake established in Q4 2020 at prices between ~$8.90 and ~$21.30 and the stock currently trades well above that range at $25.07. This quarter saw a roughly one-third selling at prices between ~$23.20 and ~$32.90.PG&E Corp. (PCG): The 3.59% 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. The position has since wavered. Recent activity follows. Q3 2020 saw a huge stake built at prices between $8.60 and $10 while the last three quarters saw a ~80% selling at prices between ~$9.40 and ~$12.80. The stock is now at $9.36.Alibaba Group Holdings (BABA): The 2.75% 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. There was a ~50% stake increase in Q2 2020 at prices between $187 and $229 while next quarter there was a one-third reduction at prices between ~$216 and ~$298. Last three quarters have seen another ~75% selling at prices between ~$206 and ~$317. The stock currently trades at ~$167. They are harvesting gains.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.SPDR Energy ETF (XLE): The 2.59% XLE stake was purchased in Q4 2020 at prices between $27.70 and $41.60. The position was increased by ~40% next quarter at prices between ~$38 and ~$54 while this quarter saw similar selling at prices between ~$47 and ~$56. The stock is now at $47.81.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 three quarters saw the stake again doubled at prices between $4.55 and $13.75 while this quarter saw a ~45% selling at prices between ~$7.70 and ~$11.35. The stock is now at $9.32 and the stake is at 2.34% of the portfolio.Paysafe Limited (PSFE), and D R Horton (DHI): These are medium-sized stakes established last quarter but reduced this quarter. PSFE is a 2.13% of the portfolio position established at prices between $13.50 and $19.24 and it is now below that range at $8.86. There was a ~15% trimming this quarter. The 2.14% DHI stake was purchased at prices between ~$66 and ~$91 and it currently trades at $90.24. There was marginal trimming this quarter.Note: Paysafe started trading at the end of March following the close of their de-SPAC transaction with Foley Trasimane II (BFT).Twitter Inc. (TWTR): TWTR is a 1.85% of the portfolio stake purchased in Q1 2020 at prices between $22 and $39 and the stock currently trades well above that range at $62.46. Q3 2020 saw a ~15% trimming while next quarter there was a marginal increase. Last two quarters have seen a ~73% selling at prices between ~$45 and ~$78.Microsoft (MSFT): The 1.75% MSFT stake was built in H1 2020 at prices between $152 and $232. Q4 2020 saw a ~80% stake increase at prices between ~$202 and ~$225. Last two quarters have seen a ~45% selling at prices between ~$212 and ~$272. The stock currently trades at ~$297.HCA Healthcare (HCA): HCA is a 1.73% of the 13F portfolio position built in H1 2020 at prices between $82 and $118. The stock is now well above that range at ~$258. Q3 2020 saw a ~11% trimming while next quarter there was a ~7% increase. There was a ~60% reduction this quarter at prices between ~$186 and ~$216.Qualcomm (QCOM): QCOM is a 1.52% of the portfolio position established in Q4 2020 at prices between ~$116 and ~$159. The stake was increased by ~25% last quarter at prices between ~$123 and ~$165. This quarter saw a one-third selling at prices between ~$125 and ~$143. The stock currently trades at ~$142.ViacomCBS (VIAC): The 1.38% VIAC stake was purchased last quarter at prices between ~$36.60 and ~$100 and it is now at $40.34. There was a ~55% selling this quarter at prices between ~$38 and ~$46.Visa Inc. (V) and MasterCard (MA),: These two positions established in Q2 2020 saw substantial selling in the last few quarters. The 1.33% Visa stake was established at prices between $152 and $200 and the stock currently trades at ~$227. Q3 2020 saw a ~20% selling at prices between ~$189 and ~$217. That was followed with a roughly ~55% reduction over the last two quarters at prices between ~$193 and ~$237. MA is a ~1% of the portfolio position purchased at prices between $229 and $313 and it is now at ~$351. There was a ~20% reduction in Q3 2020 at prices between ~$290 and ~$366. Last two quarters have seen another two-thirds selling at prices between ~$315 and ~$396.Netflix Inc. (NFLX): The 0.72% NFLX stake was established in Q1 2020 at prices between ~$300 and ~$390. Last five quarters have seen a ~75% selling at prices between ~$360 and ~$586. The stock is now at ~$598.Chesapeake Energy (CHK) & wts,: CHK is a ~1.4% of the portfolio position established last quarter as the company emerged from Chapter 11 bankruptcy. Appaloosa had senior debt that got converted. Shares started trading at ~$45 in mid-February and currently goes for $60.57. The commons portion of the stake was reduced by ~85% this quarter at prices between ~$43 and ~$56.Alliance Data Systems (ADS), Antero Resources (AR), APA Corporation (APA), Alps Alerian MLP ETF (AMLP), BP plc (BP), CarMax Inc. (KMX), Emerson Electric (EMR), Enterprise Product Partners (EPD), EQT Corp (EQT), Goodyear Tire & Rubber (GT), iShares MSCI South Korea ETF (EWY), MPLX LP (MPLX), Macys Inc. (M), Kohls Corp (KSS), Royal Dutch Shell (RDS.A) (RDS.B), SPDR S&P Oil & Gas ETF (XOP), Sysco Corp (SYY), UnitedHealth (UNH), and Western Midstream Partners (WES): These small (less than ~1.5% of the portfolio each) stakes were reduced during the quarter.Kept Steady:Altimeter Growth 2 (AGCB), E2Open Parent Holdings (ETWO), CCC Intelligent Solutions (CCCS): The very small (less than ~0.60% of the portfolio each) stakes were kept steady this quarter.Note: Dragoneer Growth did a ~$7B EV SPAC merger with CCC, an auto-insurance/repair SaaS business that closed in August. Appaloosa had a position in Dragoneer Growth.The spreadsheet below highlights changes to Tepper’s 13F stock holdings in Q2 2021:Source: John Vincent. Data constructed from Appaloosa’s 13F filings for Q1 2021 and Q2 2021.Regulatory filings thru 5/27/2021: None."