"Tracking David Tepper’s Appaloosa Management Portfolio – Q1 2017 Update"
"David Tepper’s 13F portfolio value increased from $5.64B to $6.09B this quarter.Allergan plc is the largest individual stock position at ~12% of the portfolio.The short position in S&P 500 thru SPY Puts was dropped while simultaneously building a long position thru SPY Calls.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 05/12/2017. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q4 2016.This quarter, Tepper’s 13F portfolio value increased ~8% from $5.64B to $6.09B. The number of holdings decreased from 54 to 53. The top-five individual stock positions are Allergan plc, Energy Transfer Partners LP, Williams Partners LP, Alphabet Inc., and Facebook. Combined, they account for ~36% of the 13F holdings.To know more about Tepper's distress investing style, check out the book .New Stakes:Bank of America (BAC) and General Motors (GM): The fairly large 3.4% BAC position was established this quarter at prices between $22 and $25.50 and the stock currently trades at $24. The ~3% GM stake was purchased at prices between $34 and $38.50 and it currently trades just below the low end of that range at $33.62.Note: Bank of America and General Motors are frequently traded stocks in Tepper’s portfolio.CBS Corporation (CBS), UnitedHealth (UNH), Symantec Corp. (SYMC), Charter Communications (CHTR), and Nucor Corp. (NUE): These are very small positions (less than ~1% of the portfolio each) established this quarter.Stake Disposals:SPDR S&P500 ETF (SPY) Puts: The short position in SPY was at ~4% of the portfolio as of last quarter. It was established in Q3 2016 as the underlying traded between $208 and $219 and decreased by ~60% last quarter at prices between $209 and $228. The disposal this quarter happened as the underlying traded between $224 and $240. It currently goes for $239.Note: SPY is an actively traded position in Tepper’s portfolio. The short position thru SPY Puts was replaced with a long position thru SPY Calls this quarter.Citizens Financial Group (CFG): The ~1.8% CFG position purchased in Q3 2016 at prices between $18.90 and $25 was disposed of this quarter at prices between $34 and $39.75. The stock is now at $36.65. Tepper harvested short-term gains.Qualcomm Inc. (QCOM): The 1.62% QCOM position was established in Q3 2016 at prices between $52 and $68.50 and increased by ~55% last quarter at prices between $64 and $70. The stake was eliminated this quarter at prices between $52.50 and $67. The stock is now at $55.32.Comerica Inc. (CMA): A 1.39% stake in CMA was established last quarter at prices between $47 and $70 and sold this quarter at prices between $65 and $75. The stock currently trades at $70.10.Tempur Sealy Intl. (TPX), American Airlines (AAL), and JC Penney (JCP): These are very small (less than ~1% of the portfolio each) positions disposed of this quarter.Stake Increases:Williams Partners LP (WPZ): WPZ is a top-three 6.69% portfolio position purchased in Q4 2015 at prices between $23 and $35. The stock currently trades above that range at $40.84. This quarter saw a ~5% increase.SPDR S&P500 ETF (SPY) Calls: A ~4% portfolio short position in SPY thru Puts established last quarter was replaced this quarter with a ~5.8% long position in SPY thru Calls. The switch happened as the underlying traded between $224 and $240 and it currently goes for $239.Micron Technology (MU): MU is now a fairly large 3.18% portfolio stake. It was established last quarter at prices between $16.50 and $23.50 and doubled this quarter at prices between $21.50 and $29. The stock is now at $28.93.Southwest Airlines (LUV): LUV is a 2.73% position. It was first purchased in Q3 2015 at prices between $32 and $40.50. The following quarter saw a ~160% increase at prices between $38 and $50. Q2 & Q3 2016 saw a ~87% reduction at prices between $37 and $48. Last quarter saw another reversal: stake doubled at prices between $38.50 and $51. There was a ~160% stake increase this quarter at prices between $49.50 and $59. The stock currently trades at $57.22.Regions Financial (RF): The 2.1% RF position was purchased last quarter at prices between $9.87 and $14.60 and increased by ~20% this quarter at prices between $13.50 and $16. It now goes for $14.13.Kinder Morgan Inc. (KMI): KMI is a 1.9% portfolio stake first purchased in Q4 2015 at prices between $15 and $32. H1 2016 saw a ~84% reduction at prices between $12 and $19. There was an about turn in Q3 2016: ~140% increase at prices between $18 and $23 and that was followed with a ~10% increase last quarter at prices between $19.50 and $23. There was another ~30% increase this quarter at prices between $19 and $23. The stock currently goes for $19.91.Western Digital (WDC): WDC is a 1.76% 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. This quarter also saw another ~16% increase at prices between $69 and $84. The stock is now at $89.65.ArcelorMittal (MT), Boston Scientific (BSX), Summit Materials (SUM), United Rentals (URI), Centene Corp. (CNC), and Yahoo Inc. (YHOO): These small (less than ~1.5% of the portfolio each) positions were increased this quarter.Stake Decreases:Allergan plc (AGN): AGN is currently the largest position at ~12% of the portfolio. It was established in Q4 2015 at prices between $253 and $323. The stake was increased by ~85% the following quarter at prices between $266 and $313 and that was followed with a whopping 350% increase in Q2 2016 at prices between $202 and $278. Last quarter saw another ~250% increase at prices between $188 and $243. The pattern reversed this quarter: ~30% selling at prices between $210 and $250. The stock is now at $231.Alphabet Inc. (GOOG) (GOOGL): GOOG is the fourth-largest 13F equity stake at ~6.5% of the portfolio. 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 was increased by 87% in Q1 2014 at prices between $550 and $610. Q2 & Q3 2015 saw a combined ~77% reduction at prices between $517 and $673. The three quarters thru Q2 2016 saw the pattern reverse: ~240% increase at prices between $608 and $777. Q3 2016 saw a ~25% selling at prices between $692 and $787. The stock currently trades at $932. There was a very minor trimming this quarter.Facebook Inc. (FB): FB is a large (top five) 4.45% of the portfolio stake established in Q3 2016 at prices between $114 and $131 and increased by ~50% last quarter at prices between $115 and $133. This quarter saw a ~13% trimming at prices between $117 and $143. The stock currently trades at $150.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.Owens Corning (OC): The original OC stake was established in Q1 & Q2 2012 at prices between $29 and $37. Q4 2014 saw a ~14% reduction at prices between $29 and $37 while in Q2 2015 there was a ~22% increase at prices between $38 and $43.50. Q3 2016 saw a ~12% trimming at prices between $51 and $55.50. The stake is now at 2.63%. The stock currently trades at $60.87. Last two quarters saw a combined ~12% trimming at prices between $46.50 and $62.50. Tepper is harvesting gains.Allstate Corporation (ALL): The ~2.5% Allstate stake was established over Q3 & Q4 2015 at prices between $57 and $69. Last quarter saw a ~17% selling at prices between $66.50 and $75 and that was followed with a ~30% reduction this quarter at prices between $73 and $83. The stock currently trades at $84.13.Huntsman Corporation (HUN): HUN is a ~2.2% 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. Q2 2016 saw the pattern reverse: ~16% reduction at prices between $12.50 and $16.50. Last three quarters also saw minor trimming. The stock trades at $25.76.Mohawk Industries (MHK): MHK is a 2.12% 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 $231. Last quarter had seen a ~9% increase while there was a ~11% trimming this quarter.Note: MHK has seen several roundtrips. The last one was a very small stake purchased in Q1 2015 and disposed in Q3 2015.Atlantica Yield plc (ABY): ABY is a ~1.8% 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 ~11% trimming this quarter. The stock is now at $19.89.Note: Tepper owns 5.2% of ABY.Whirlpool Corporation (WHR): WHR is a ~1.4% of the US long portfolio position. Q1 2014 saw a 125% increase at prices between $127 and $159 and that was followed with a stake doubling in Q3 2014 at prices between $139 and $156. In Q4 2014, the pattern reversed: ~44% reduction over the next two quarters at prices between $140 and $215. In Q4 2015, there was a ~43% increase at prices between $142 and $167. Last year had seen a two-thirds reduction at prices between $128 and $192. The stock currently trades at $183. There was a ~15% trimming this quarter.Teva Pharmaceuticals (TEVA), Pfizer Inc. (PFE), and Mylan NV (MYL): These pharma stocks were established last quarter and reduced this quarter. TEVA is a ~1% position purchased at prices between $35 and $46 and reduced by ~55% this quarter at prices between $32 and $38. The stock is now at $31.89. The 1.7% PFE stake was established at prices between $30 and $34 and reduced by ~35% this quarter at prices between $31 and $35. It currently trades at ~$33. MYL is a 1.2% position purchased at prices between $34 and $39 and reduced by ~40% this quarter at prices between $35.50 and $45.50. The stock currently trades at $38.94.HCA Holdings (HCA), Apple Inc. (AAPL), Hain Celestial (HAIN), Goodyear Tire & Rubber (GT), Alps ETF Alerian MLP (AMLP), Kennametal (KMT), and McKesson Corp. (MCK): These are very small positions (less than ~1% of the portfolio each) that saw reductions this quarter.Kept Steady:Energy Transfer Partners LP (ETP): ETP is currently the second-largest individual stock position at 7.18% of the portfolio. 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. Q2 2016 saw a ~30% selling at prices between $30 and $41. The stock is now at ~$23.PNC Financial (PNC): The fairly large ~4% PNC stake was established in Q3 2016 at prices between $78.50 and $91 and increased by ~220% last quarter at prices between $88 and $118. The stock is now just above those ranges at $121.Terraform Power (TERP): TERP is a 1.77% portfolio stake established in Q4 2015 at prices between $7 and $20. The stock is now at $12.20.Following are the other minutely small stakes in the portfolio: AK Steel (AKS), Delta Air Lines (DAL), Kayne Anderson MLP (KYN), Rio Tinto plc (RIO), Snap Inc. (SNAP), Terraform Global (GLBL), Thermo Fisher Scientific (TMO), United Continental Holdings (UAL), United States Steel (X), and WMIH Corp (WMIH).Note: Tepper has a ~3.7% ownership stake in WMIH.The spreadsheet below highlights changes to Tepper’s US stock holdings in Q1 2017:Regulatory Filings thru 2/21/2017: 13G - 2/14/2017 - Atlantica Yield plc - ABY - 5.82M shares - 5.8%.11/21/2016: Sunoco Logistics (SXL) offered to acquire Energy Transfer Partners (ETP) in an all-stock deal (1.5 shares of SXL for each ETP share)."