"Tracking David Tepper’s Appaloosa Management Portfolio – Q2 2020 Update"
"David Tepper’s 13F portfolio value increased from $3.27B to $5.76B this quarter.Appaloosa added AT&T while increasing Alibaba Group Holdings during the quarter.Alibaba Group Holdings, Amazon, T-Mobile US, Facebook, and Micron 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 08/14/2020. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q1 2020.This quarter, Tepper’s 13F portfolio value increased ~75% from $3.27B to $5.76B. The number of holdings increased from 31 to 36. The top five positions are Alibaba Group Holdings, Amazon, T-Mobile US, Facebook, and Micron Technology. They add up ~50% of the portfolio. To know more about Tepper's distress investing style, check out the book .Note: It was reported last May that Appaloosa is returning outside money and converting to a Family Office structure.New Stakes:AT&T Inc. (T): T is a large 4.77% of the portfolio stake established this quarter at prices between $27.50 and $33.23 and the stock currently trades at $29.73. For investors attempting to follow, T is a good option to consider for further research.Visa Inc. (V), MasterCard (MA), PayPal (PYPL), and Walt Disney (DIS): These are medium-sized new positions purchased during the quarter. The 2.82% V stake was established at prices between $152 and $200 and the stock currently trades at ~$201. MA is a 2.80% of the portfolio position purchased at prices between $229 and $313 and it is now at $332. The 2.63% PYPL stake was established at prices between $91 and $177 and it currently goes for $192. DIS is a 2.32% position purchased at prices between $94 and $127 and it currently trades at ~$128.Note: Walt Disney is back in the portfolio after a gap of six years – a small position established in Q4 2013 was disposed in Q3 2014 realizing short-term gains.Sysco Corp (SYY), Emerson Electric (EMR), Altria Group (MO), and Square Inc. (SQ): These are small (less than ~1.5% of the portfolio each) new positions established during the quarter.Tenneco Inc. (TEN) and Enable Midstream (ENBL): These are minutely small (less than ~0.25% of the portfolio each) stakes purchased this quarter.Stake Disposals:Allergan plc (AGN): AGN was a 3.76% of the portfolio stake. It was built over the five quarters thru Q4 2016 at prices between $188 and $323. Abbvie (ABBV) bought Allergan in a cash-and-stock deal ($120.30 cash and 0.866 shares of ABBV for each share of AGN held) that closed in May.Intelsat SA (INTEQ): The 0.47% of the portfolio Intelsat stake was purchased in Q4 2019 at prices between $5.95 and $27. Last quarter saw the stake increased by ~250% at prices between $3 and $8. In May, the stock was delisted following Chapter 11 bankruptcy filing. Tepper had previously urged the company’s board to file for bankruptcy and challenge the FCC plan to clear C-band spectrum for 5G.Sprint (S): The small 1.68% merger-arbitrage stake in S was purchased last quarter. The merger with T-Mobile closed in April thereby eliminating this position.Intelsat Notes, Invesco Senior Loan ETF (BKLF), and Select SPDR Utils (XLU): These very small (less than ~0.5% of the portfolio each) positions established last quarter were disposed this quarter.Stake Increases:Alibaba Group Holdings (BABA): BABA is currently the largest 13F position at 12.64% of the portfolio. It 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 ~$261. There was a ~50% stake increase this quarter at prices between $187 and $229.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.T-Mobile US (TMUS) & Rights: TMUS is a large (top three) ~11% of the portfolio position purchased in Q4 2017 at prices between $55 and $64.50 and the stock is currently at ~$115. Q3 2018 saw a one-third selling at prices between $58 and $71 and that was followed with a ~60% reduction next quarter at prices between $60.80 and $70.50. H1 2019 had seen another one-third selling at prices between $65 and $78. Last quarter saw a ~10% stake increase and that was followed with a whopping 870% stake increase this quarter at prices between $82 and $110. For investors attempting to follow, TMUS is a good option to consider for further research.Note: 1.55M shares of the increase this quarter are in Rights 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 8.37% 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. The stock currently trades at ~$44. Last two quarters have also seen a ~15% stake increase at prices between ~$35 and ~$60. For investors attempting to follow, MU is a good option to consider for further research.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.Twitter Inc. (TWTR) and: TWTR is a 2.87% of the portfolio stake purchased last quarter at prices between $22 and $39 and the stock currently trades at $38.89. There was a marginal increase this quarter.HCA Healthcare (HCA): HCA is a 1.77% of the 13F portfolio position built over the last two quarters at prices between $82 and $118. The stock is now at ~$133.Salesforce.com (CRM): CRM is a 1.63% of the portfolio position established in H1 2019 at prices between $124 and $193 and the stock currently trades at ~$205. Last quarter saw a ~7% trimming while this quarter there was a similar increase.Boston Scientific (BSX), Goodyear Tire & Rubber (GT), Microsoft (MSFT), Wells Fargo (WFC), and Western Midstream Partners (WES): These small (less than ~1% of the portfolio each) stakes purchased last quarter saw increases this quarter.Stake Decreases:Amazon.com (AMZN): AMZN is currently the second-largest position at ~11% of the portfolio. The 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 ~23% selling over the last two quarters at prices between ~$1675 and ~$2880. The stock currently trades at ~$3261.Facebook Inc. (FB): FB is a top-five 8.81% 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 2019 saw a ~40% stake increase at prices between $131 and $173. That was followed with a ~50% stake increase in Q3 2019 at prices between $177 and $205. The stock is currently at ~$263. Last two quarters have seen a ~21% selling at prices between $146 and $242.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.Alphabet Inc. (GOOG) (GOOGL): GOOG is a large ~8.20% 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: Q2 2019 saw a ~50% stake increase at prices between $1036 and $1288. That was followed with a stake doubling next quarter at prices between $1098 and $1250. The stock currently trades at ~$1545. Last two quarters have seen a ~25% reduction at prices between $1054 and $1525.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. Last quarter saw another ~45% stake increase at prices between $4.55 and $13.75. The stock is now at $6.52 and the stake is at 1.87% of the portfolio. This quarter saw a ~7% trimming.Netflix Inc. (NFLX): The 1.82% NFLX stake was established last quarter at prices between ~$300 and ~$390. This quarter saw a ~10% trimming. The stock is now at ~$485.Adobe Inc. (ADBE): ADBE is a 1.56% of the portfolio position that saw a ~80% stake increase in Q3 2019 at prices between $273 and $311. Next quarter saw a ~17% increase while the last two quarters have seen similar trimming. The stock currently trades at $462.PG&E Corp. (PCG): PCG is a 1.38% of the portfolio position. It 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. The stock currently trades well below those ranges at $9.23. 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. Last quarter also saw a one-third selling at prices between $7.25 and $18. That was followed with a ~20% reduction this quarter at prices between $8.87 and $12.53.Note: PG&E filed for Chapter 11 bankruptcy protection in January and a few hedge funds stepped in to purchase shares as the stock price crashed.Broadcom Inc. (AVGO): AVGO is a 1.10% of the portfolio stake purchased in Q3 2019 at prices between $266 and $304 and the stock is currently at ~$329. Last two quarters have seen a ~27% selling at prices between $168 and $324.Alps Alerian MLP ETF (AMLP), Humana Inc. (HUM), Qualcomm (QCOM), Tesla Inc. (TSLA), UnitedHealth (UNH), and Vistra Energy (VST): These small positions (less than ~1% of the portfolio each) were reduced this quarter.Kept Steady:None.The spreadsheet below highlights changes to Tepper’s 13F stock holdings in Q2 2020:Regulatory filings thru 5/21/2020: 13D/A – 4/23 – I – 6.95M shares – 4.95% of business."