"Tracking David Tepper’s Appaloosa Management Portfolio – Q4 2016 Update"
"David Tepper’s 13F portfolio value increased from $4.40B to $5.64B this quarter.Allergan plc is the largest individual stock position at ~16% of the portfolio.The large short position in S&P 500 thru SPY Puts established last quarter was reduced this quarter.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 02/14/2017. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q3 2016.This quarter, Tepper’s 13F portfolio value increased ~28% from $4.40B to $5.64B. The number of holdings increased from 42 to 54. The top-five individual stock positions are Allergan plc, Energy Transfer Partners LP, Alphabet Inc., Williams Partners LP, and Facebook. Combined, they account for ~41% of the 13F holdings.To know more about Tepper's distress investing style, check out the book .New Stakes:Teva Pharmaceuticals (TEVA), Pfizer Inc. (PFE), and Mylan NV (MYL): These are the new pharma stocks this quarter. TEVA is a 3.25% position purchased at prices between $35 and $46 and the stock is now at $35.20. The 2.77% PFE stake was established at prices between $30 and $34 and it currently trades at $33.62. MYL is a 2.22% position purchased at prices between $34 and $39 and the stock currently trades at $42.05.Regions Financial (RF) and Comerica Inc. (CMA): These are the two financial stocks established this quarter. The 1.87% RF position was purchased at prices between $9.87 and $14.60 and it now goes for $15.38. The 1.39% CMA stake was established at prices between $47 and $70 and the stock currently trades at $72.37.Micron Technology (MU), United Rentals (URI), American Airlines (AAL), Centene Corp. (CNC), JC Penney (JCP), Summit Materials (SUM), McKesson Corp. (MCK), and Kennametal (KMT): These are very small (less than ~1% of the portfolio each) positions established this quarter.Stake Disposals:HD Supply Holdings ((HDS): HDS became a significant presence in the portfolio in Q1 2014 when around 1M shares were purchased for around $23 per share. The original stake was more than doubled in Q1 2015 at prices between $27 and $31.50. Q4 2015 saw another ~41% increase at prices between $28 and $32. Q2 2016 saw a ~17% trimming at prices between $32.50 and $36.50. The disposal of the remaining ~2% stake this quarter happened at prices between $31 and $44. It currently trades at $43.25. Tepper harvested gains.Synchrony Financial (SYF): SYF was a 2.65% of the portfolio position established in Q1 2016 at prices between $24.50 and $30.50 and increased by ~20% the following quarter at prices between $23 and $32. Last quarter saw an almost one-third reduction at prices between $25 and $28.50. The elimination this quarter was at prices between $26 and $37.50. The stock is now at $36.68.Note: The retail unit spinoff from General Electric (GE) started trading in July 2014.Bank of America (BAC) and VMWare Inc. (VMW): These two small (less than ~1.5% of the portfolio each) stakes were sold out this quarter.Note: BAC has seen several roundtrips in the portfolio. The most recent activity follow: It was a 1.67% of the US long portfolio stake established in Q1 2016 at prices between $11.16 and $16.83 and sold the following quarter at prices between $12.18 and $15.11.Stake Increases:Allergan plc (AGN): AGN is currently the largest position at ~16% 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. This quarter saw another ~250% increase at prices between $188 and $243. The stock is now at $247. For investors attempting to follow Tepper, AGN is a good option to consider for further research.Energy Transfer Partners LP (ETP): ETP is currently the second-largest individual stock position at 7.59% 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 $38.32. Last two quarters have seen marginal increases.Note: Sunoco Logistics (SXL) offered to acquire Energy Transfer Partners (ETP) in an all-stock deal (1.5 shares of SXL for each ETP share) last November.Alphabet Inc. (GOOG) (GOOGL): GOOG is the third-largest 13F equity stake at 6.61% 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. Last quarter saw a ~25% selling at prices between $692 and $787. The stock currently trades at $828. There was a very minor increase this quarter.Williams Partners LP (WPZ): WPZ is a top-five 6.40% portfolio position purchased in Q4 2015 at prices between $23 and $35 and marginally increased this quarter. The stock currently trades at $40.03.Facebook Inc. (FB): FB is a large (top five) 4.45% of the portfolio stake established last quarter at prices between $114 and $131 and increased by ~50% this quarter at prices between $115 and $133. The stock currently trades at $134.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.PNC Financial (PNC): The fairly large ~4% PNC stake was established last quarter at prices between $78.50 and $91 and increased by ~220% this quarter at prices between $88 and $118. The stock is now at $127.Mohawk Industries (MHK): MHK is a 2.24% 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. Last quarter saw a ~24% reduction at prices between $186 and $216. The stock is now at $222. There was a ~9% increase 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.Citizens Financial Group (CFG): The ~1.8% CFG position was purchased last quarter at prices between $18.90 and $25 and increased by ~10% this quarter at prices between $24.50 and $36.50. The stock is now at $37.84.Kinder Morgan Inc. (KMI): KMI is a ~1.5% 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 last quarter: ~140% increase at prices between $18 and $23 and that was followed with a ~10% increase this quarter at prices between $19.50 and $23. The stock currently goes for $21.77.Southwest Airlines (LUV): LUV is a ~1% 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. This quarter saw another reversal: stake doubled at prices between $38.50 and $51. The stock currently trades at $57.32.Qualcomm Inc. (QCOM): The 1.62% QCOM position was purchased last quarter at prices between $52 and $68.50 and increased by ~55% this quarter at prices between $64 and $70. The stock is now at $56.46. For investors attempting to follow Tepper, QCOM is a good option to consider for further research.Stake Decreases:SPDR S&P500 ETF (SPY) Puts: The short position in SPY is now at ~4% of the portfolio. It was established last quarter as the underlying traded between $208 and $219 and decreased by ~60% this quarter at prices between $209 and $228. It currently goes for $235.Note: SPY is an actively traded position in Tepper’s portfolio.Allstate Corporation (ALL): The ~3.5% Allstate stake was established over Q3 & Q4 2015 at prices between $57 and $69. This quarter saw a ~17% selling at prices between $66.50 and $75. The stock currently trades at $80.44.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. Last quarter saw a ~12% trimming at prices between $51 and $55.50. The stake is now at ~2.5%. The stock currently trades at $57.43. There was a ~8% trimming this quarter. Tepper is harvesting gains.Atlantica Yield plc (ABY): ABY is a 2% portfolio position purchased in Q4 2015 at prices between $14.50 and $21. Last year saw an overall ~8% trimming. The stock is now at $21.31.Note: Tepper owns 5.8% of ABY.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. Q2 2016 saw the pattern reverse: ~16% reduction at prices between $12.50 and $16.50 and that was followed with a ~6% trimming last quarter. This quarter saw another ~10% selling at prices between $15.50 and $20.50. The stake is now at 5.7M shares and the stock trades at $21.34.Whirlpool Corporation (WHR): WHR is a 1.83% 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 has seen a two-thirds reduction at prices between $128 and $192. The stock currently trades at $177.HCA Holdings (HCA): HCA became a significant position in the portfolio in Q4 2012 when over 4M shares were purchased in the low-30s price-range. Q2 & Q3 20115 saw a ~27% combined reduction at prices between $73.50 and $95. In Q4 2015, the pattern reversed: ~28% increase at prices between $64 and $79.  Last two quarters saw a ~73% combined reduction at prices between $63 and $82. This quarter saw a minor ~7% trimming. The remaining stake is at 1.5% of the portfolio and the stock is at $84.63. Tepper is harvesting huge gains.Western Digital (WDC): WDC is a 1.35% of the portfolio stake established in Q2 2016 at prices between $35.50 and $51. It was reduced by ~21% last quarter at prices between $43 and $59. The stock is now at $74.91. There was marginal trimming this quarter.Apple Inc. (AAPL): AAPL is a ~2% portfolio position purchased last quarter at prices between $95 and $116 and reduced by ~45% this quarter at prices between $106 and $118. The stock is now at $136.Note: Apple is a frequently traded stock in Appaloosa’s portfolio since early 2012. Most recently, a 2.65% of the US long portfolio stake was established in Q2 2015 at prices between $120 and $133. It was disposed over the next two quarters at prices between $93 and $132.Hain Celestial (HAIN): HAIN is a small ~0.70% stake purchased in Q1 2016 at prices between $33.50 and $41.50 and reduced by ~10% in Q2 2016 at prices between $41 and $53. This quarter saw a ~20% selling at prices between $34 and $40. The stock currently trades at $34.95.Goodyear Tire & Rubber (GT): GT is a very long-term minutely small 0.13% position that has been in the portfolio since before the financial crisis. In 2007, the stake stood at 2.7M shares (~5% of portfolio). The position size peaked at 22M shares in Q2 2013 when a large increase happened at prices between $12 and $15.50. The four quarters thru Q2 2016 had seen a huge ~93% reduction at prices between $25 and $35. The pattern reversed last quarter: ~21% increase at prices between $25 and $33. The remaining 0.63% position was almost sold out this quarter at prices between $27.50 and $33. The stock currently trades at $36.07.Tempur Sealy Intl. (TPX) and Yahoo Inc. (YHOO): These small (less than ~1.5% of the portfolio each) positions established last quarter were reduced this quarter.Kept Steady:Terraform Power (TERP): TERP is a ~2% portfolio stake established in Q4 2015 at prices between $7 and $20. The stock is now at $11.63.Alps ETF Alerian MLP (AMLP): AMLP is a very small ~1% portfolio stake purchased in Q4 2015 at prices between $10.30 and $14.14 and the stock is now at $12.98.SPDR S&P 500 ETF (SPY) & Calls: A huge ~10% portfolio stake in SPY & Calls (mostly Calls) was established in Q4 2015 when the underlying traded between $192 and $211. The position was almost eliminated in Q2 2016 when SPY traded between $200 and $212. It currently trades at $235. The position is now minutely small at less than ~0.1%.Following are the other minutely small stakes in the portfolio: ArcelorMittal (MT), Arch Coal (ARCH), Boston Scientific (BSX), Bristol Myers Squibb (BMY), Delta Air Lines (DAL), Kayne Anderson MLP (KYN), Rio Tinto plc (RIO), SPDR S&P 500 ETF (SPY), Teck Resources (TECK), Terraform Global (GLBL), United Continental Holdings (UAL), United States Steel (X), and WMIH Corp (WMIH). The 13F report also has minutely small stakes in General Motors (GM) warrants and Kinder Morgan (KMI) Warrants.Note: Tepper has a ~3.7% ownership stake in WMIH.The spreadsheet below highlights changes to Tepper’s US stock holdings in Q4 2016:Regulatory filings thru 11/20/2016: 13D/A 10/13/2016 - WMIH - 7.6M shares - 3.7%."