"Tracking David Tepper’s Appaloosa Management Portfolio – Q3 2017 Update"
"David Tepper’s 13F portfolio value increased from $6.74B to $7.12B this quarter.Micron Technology is the largest individual stock position at ~9% of the portfolio.Appaloosa increased Micron Technology, Facebook, NRG Energy, & Apple while reducing Allergan plc, Williams Partners LP, and Energy Transfer Partners LP.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 11/14/2017. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q2 2017.This quarter, Tepper’s 13F portfolio value increased ~6% from $6.74B to $7.12B. The number of holdings decreased from 58 to 48. The top-five individual stock positions are Micron Technology, Alibaba Group Holdings, Facebook Inc., Alphabet Inc., and Allergan plc. Combined, they account for ~39% of the 13F holdings.To know more about Tepper's distress investing style, check out the book .New Stakes:Select Sector SPDR Financial ETF (XLF) Calls: The ~3% position in XLF Calls is new. The stock traded between $24 and $26 during the quarter and it currently goes for $26.16.Stake Disposals:iShares Nasdaq Biotech ETF (IBB): IBB was a small ~1% portfolio stake established last quarter at prices between $284 and $321 and disposed this quarter at prices between $304 and $336. It is now at $311.Cemex SAB ADR (CX), Delta Air Lines (DAL), L Brands (LB), Nucor Corp (NUE), and Wells Fargo (WFC): These are very small (less than ~0.67% of the portfolio each) stakes disposed this quarter.Stake Increases:Micron Technology (MU): MU is now the largest position at 9.42% of the portfolio. It was established in Q4 2016 at prices between $16.50 and $23.50 and doubled the following quarter at prices between $21.50 and $29. The stake was almost doubled again last quarter at prices between $26.50 and $32.50. There was a one-third further increase this quarter at prices between $27.50 and $39.50. The stock is now at $46.16.Facebook Inc. (FB): FB is a large (top three) ~8% 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. Q1 2017 saw a ~13% trimming at prices between $117 and $143. There was a ~24% increase last quarter at prices between $139 and $155 and that was followed with a ~40% increase this quarter at prices between $148 and $174. The stock currently trades at $179.Note: FB has had several previous roundtrips in the portfolio: The latest was a fairly large 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.Western Digital (WDC): WDC is a ~3% of the portfolio stake established in Q2 2016 at prices between $35.50 and $51. It was reduced by ~21% the following quarter at prices between $43 and $59. Q1 2017 saw a ~16% increase at prices between $69 and $84 and that was followed with a stake-doubling last quarter at prices between $82 and $94. The stock is now at $91.30. There was a marginal increase this quarter.Ally Financial (ALLY) and NRG Energy (NRG): These two positon saw large stake increases this quarter. NRG stake saw a ~575% increase to a ~3% of the portfolio position at prices between $16 and $26. The stock currently trades above that range at $29.49. ALLY position saw a ~525% increase to a 2.32% portfolio stake at prices between $20.50 and $24.50 and it is now above that range at $26.67.Apple Inc. (AAPL): The majority of the ~3% AAPL stake was purchased over the last two quarters at prices between $140 and $164. The stock is now at $170.UnitedHealth (UNH): UNH is a ~2% portfolio position built this year at prices between $158 and $200 and the stock is currently at $210.Southwest Airlines (LUV): LUV is now a very small a 0.61% position. It was first purchased in Q3 2015 at prices between $32 and $40.50 and the stake has wavered. Recent activity follow: Q1 2017 saw a ~160% stake increase at prices between $49.50 and $59 while last quarter saw the position reduced by two-thirds at prices between $53 and $62. There was a ~25% stake increase this quarter at prices between $50.50 and $64. The stock currently trades at $54.71.Boston Scientific (BSX), Centene Corp (CNC), Energy Transfer Equity (ETE), Kennametal (KMT), Stryker Corp. (SYK), and Thermo Fisher Scientific (TMO): These are small positions (less than ~1.5% of the portfolio each) that saw increases this quarter.Stake Decreases:Alibaba Group Holdings (BABA): BABA is a large (top three) 8.64% of the portfolio stake established in Q1 2017 at prices between $107 and $144 and the stock is now well above that range at $185. There was marginal trimming this quarter.Alphabet Inc. (GOOG) (GOOGL): GOOG is a large (top five) 7.65% 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 position has wavered. Recent activity follow: Q3 2016 saw a 25% selling at prices between $692 and $787 while last quarter saw a ~23% increase at prices between $824 and $984. The stock currently trades at $1019. There was a very minor ~3% reduction this quarter.Allergan plc (AGN): AGN is a large (top five) 5.44% of the portfolio stake. It was built up 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 last quarter at prices between $219 and $249. There was another ~25% selling this quarter at prices between $203 and $256. The stock is now at $175.Altaba Inc. (AABA) previously Yahoo: AABA is a fairly large 4.36% 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 last quarter at prices between $46 and $56. The stock is now at $71.02. There was a ~9% trimming this quarter.Williams Partners LP (WPZ): WPZ is a ~4% portfolio position purchased in Q4 2015 at prices between $23 and $35. There was a ~20% selling this quarter at prices between $37 and $41.50. The stock currently trades at $35.24.Energy Transfer Partners LP (ETP): ETP is a ~3% of the portfolio position. The original stake is from Q4 2015 at prices between $28 and $47. The following quarter saw a ~200% increase at prices between $20 and $35. The pattern reversed in Q2 2016: ~30% selling at prices between $30 and $41. Last quarter saw another reversal: ~24% increase at prices between $18.50 and $24.50. There was a ~20% reduction this quarter at prices between $18 and $21.50. The stock is now at $16.75.Powershares QQQ ETF (QQQ): QQQ is a ~3% of the portfolio position purchased last quarter at prices between $130 and $144. This quarter saw a ~20% selling at prices between $136 and $146. The stock currently trades at $154.Owens Corning (OC): The original OC stake was established in Q1 & Q2 2012 at prices between $29 and $37. Last four quarters saw a combined one-third selling at prices between $46.50 and $78. The stock currently trades at $85.63. Tepper is harvesting gains. The remaining position is at 2.31% of the portfolio.Huntsman Corporation (HUN): HUN is a ~2% 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. Q1 2015 saw a one-third increase at prices between $21 and $24.50. Last seven quarters have seen a combined ~36% reduction at prices between $8.50 and $28. The stock is now at $30.55.Allstate Corporation (ALL): The ~2% Allstate stake was established over Q3 & Q4 2015 at prices between $57 and $69. Last four quarters have seen a combined ~53% selling at prices between $66.50 and $94. The stock currently trades at $100.Bank of America (BAC): BAC is a 2.25% position established in Q1 2017 at prices between $22 and $25.50 and reduced by ~30% this quarter at prices between $22.89 and $25.50. The stock currently trades at $26.62. BAC is a frequently traded stock in Tepper’s portfolio.United Rentals (URI): URI is a 1.82% position built over the last three quarters at prices between $72 and $129. There was a ~20% reduction this quarter at prices between $107 and $139. The stock is now at $150.PNC Financial (PNC): The 1.75% PNC stake was established in Q3 2016 at prices between $78.50 and $91 and increased by ~220% the following quarter at prices between $88 and $118. This quarter saw the position reduced by half at prices between $121 and $135. The stock is now at $133. Tepper realized gains.Terraform Power (TERP): TERP is a 1.59% portfolio stake established in Q4 2015 at prices between $7 and $20. There was marginal trimming this quarter. The stock is now at $12.64.Atlantica Yield plc (AY): AY is a ~1.3% portfolio position purchased in Q4 2015 at prices between $14.50 and $21. Last year saw an overall ~8% trimming and that was followed with a ~20% reduction over the last three quarters. The stock is now at $22.80.Note: Tepper owns 4.7% of ABY.Mohawk Industries (MHK): MHK is a 1.10% of the US long portfolio position established in Q1 2016 at prices between $152 and $192 and increased by ~37% the following quarter at prices between $178 and $201. Q3 2016 saw a ~24% reduction at prices between $186 and $216. The stock is now at $272. Last two quarters saw a combined ~50% selling at prices between $228 and $260.Note: MHK has seen several roundtrips. The last one was a very small stake purchased in Q1 2015 and disposed in Q3 2015.Whirlpool Corporation (WHR): WHR is a ~1% of the US long portfolio position. Most of the original stake is from Q1 & Q3 2014 at prices between $127 and $159. Recent activity follow: Last year saw a two-thirds reduction at prices between $128 and $192. YTD has seen another ~45% reduction at prices between $165 and $198. The stock currently trades at $165.Kinder Morgan Inc. (KMI): KMI is a ~1% portfolio stake first purchased in Q4 2015 at prices between $15 and $32. The position has wavered since. It was sold down by ~85% in H1 2016 at prices between $12 and $19. The three quarters thru Q1 2017 saw a ~250% stake increase at prices between $18 and $23 while last two quarters have seen a ~40% reduction at prices between $18.50 and $21.75. The stock currently goes for $17.01.CBS Corporation (CBS), Dollar General (DG), General Motors (GM), Hain Celestial (HAIN), and Summit Materials (SUM): These small (less than ~1% of the portfolio each) positions were decreased this quarter.Note: GM is a frequently traded stock in Tepper’s portfolio.Following are the other minutely small stakes in the portfolio: Aerie Pharmaceuticals (AERI), Antero Resources (AR), Applied Materials (AMAT), Chesapeake Energy (CHK), HCA Healthcare (HCA), Peabody Energy (BTU), Range Resources (RRC), WMIH Corp (WMIH), and XPO Logistics (XPO).Note: Tepper has a ~3.6% ownership stake in WMIH.The spreadsheet below highlights changes to Tepper’s US stock holdings in Q3 2017:Regulatory Filings thru 8/17/2017: None."