"Tracking David Tepper’s Appaloosa Management Portfolio – Q1 2020 Update"
"David Tepper’s 13F portfolio value decreased from $3.98B to $3.27B this quarter.Appaloosa added Twitter and Netflix during the quarter.Alphabet, Facebook, Amazon, Alibaba Group Holdings, 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 05/15/2020. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q4 2019.This quarter, Tepper’s 13F portfolio value decreased ~18% from $3.98B to $3.27B. The number of holdings increased from 22 to 31. The top five positions are Amazon, Alibaba Group Holdings, Alphabet, Facebook, and Micron Technology. They add up to two-thirds 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:Twitter Inc. (TWTR) and Netflix Inc. (NFLX): TWTR is a fairly large 4.15% of the portfolio stake purchased this quarter at prices between $22 and $39 and the stock currently trades at $32.34. The ~3% NFLX stake was established this quarter at prices between ~$300 and ~$390 and it is now at ~$436.Sprint (S), Qualcomm (QCOM), HCA Healthcare (HCA), Tesla Inc. (TSLA), Wells Fargo (WFC), and Goodyear Tire & Rubber (GT): These are small (less than ~1.5% of the portfolio each) new positions established this quarter.Microsoft (MSFT), Intelsat Notes, Select SPDR Utils (XLU), Boston Scientific (BSX), Invesco Senior Loan ETF (BKLF), and Western Midstream Partners (WES): These are minutely small (less than ~0.5% of the portfolio each) new stakes purchased this quarter.Stake Disposals:Caesars Entertainment (CZR): The 3.43% CZR stake was established in Q4 2017 and more than doubled next quarter at prices between $10.50 and $14.50. Q2 2018 also saw a ~25% increase at prices between $10.50 and $13.20. There was a combined ~15% selling in H2 2018 and that was followed with a ~20% reduction in Q2 2019. Last quarter saw another ~10% trimming and the disposal this quarter was at prices between ~$3.50 and ~$14.60. The stock is currently at ~$11.Note: Eldorado Resorts (ERI) is buying Caesars in a cash-and-stock deal announced last June ($8.40 cash and 0.0899 ERI shares for each share of CZR held).Broadcom cnvrt pfds , Caesars Entertainment Notes, Cheniere Energy (LNG), and Clearway Energy (CWEN): These small positions (less than ~1% of the portfolio each) were disposed during the quarter.Stake Increases:Micron Technology (MU): The current 11.39% top five MU stake was built in Q3 2019 at prices between $39.50 and $51. There was a one-third stake increase last quarter at prices between $42 and $55.50. The stock currently trades at ~$45. This quarter also saw a ~10% stake increase at prices between $34.50 and $60.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.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 in 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 last quarter at prices between $11 and $13. This quarter saw another ~45% stake increase at prices between $4.55 and $13.75. The stock is now at $8.18 and the stake is at 2.29% of the portfolio.T-Mobile US (TMUS): TMUS is a ~2% of the portfolio position purchased in Q4 2017 at prices between $55 and $64.50 and the stock is currently at $94.39. 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. This quarter saw a ~10% stake increase.Intelsat SA (INTEQ): The 0.47% of the portfolio Intelsat stake was purchased last quarter at prices between $5.95 and $27. This quarter saw the stake increased by ~250% at prices between $3 and $8. Earlier this month, 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.Note: Regulatory filings since the quarter ended show them owning 6.95M shares. This is compared to 10.15M shares in the 13F Report.Stake Decreases:Amazon.com (AMZN): AMZN is currently the top position at ~15% of the portfolio. The stake was purchased in Q1 2019 at prices between $1500 and $1820. Last three quarters had seen a ~75% stake increase at prices between $1690 and $2020. This quarter saw a ~14% selling. The stock currently trades at ~$2447.Alibaba Group Holdings (BABA): BABA is a large (top three) 13.46% of the portfolio position established in Q3 2019 at prices between $154 and $183 and increased by ~85% last quarter at prices between $162 and $217. The stock currently trades at ~$212. This quarter saw a ~6% trimming.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.Alphabet Inc. (GOOG) (GOOGL): GOOG is currently the third-largest position at 12.83% 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 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 ~$1403. There was a ~18% selling this quarter at prices between $1057 and $1527.Facebook Inc. (FB): FB is a top-five 12.30% 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 $231. This quarter saw a ~15% selling.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.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 earlier this month.PG&E Corp. (PCG): PCG is a 3.12% 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 $11.83. 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. This quarter also saw a one-third selling at prices between $7.25 and $18.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 1.69% of the portfolio stake purchased in Q3 2019 at prices between $266 and $304 and the stock is currently at ~$275. This quarter saw a ~15% trimming.Adobe Inc. (ADBE): ADBE is a ~2% of the portfolio position that saw a ~80% stake increase in Q3 2019 at prices between $273 and $311. The stock currently trades at $382. Last quarter saw a ~17% increase while this quarter there was a ~7% trimming.UnitedHealth (UNH): UNH is a 1.91% portfolio position built during the four quarters thru Q1 2018 at prices between $213 and $249. Last three quarters of 2018 had seen a combined ~65% selling at prices between $217 and $287. There was a one-third increase in Q2 2019 at prices between $217 and $252 while next quarter saw a ~25% selling at prices between $215 and $267. The zig-zag trading pattern continued last quarter: ~20% stake increase at prices between $215 and $296. The stock is currently at ~$287. This quarter saw a ~17% selling.Alps Alerian MLP ETF (AMLP): The 0.64% portfolio stake in AMLP was established in Q4 2018 at prices between $41.50 and $55 and it currently trades well below that range at $26.36. There was a ~6% stake increase in Q1 2019 while next quarter saw a ~13% trimming.  This quarter also saw a ~8% trimming.Note: AMLP had a 1-for-5 reverse stock-split this week. The prices quoted above are adjusted to account for this.Vistra Energy (VST): The 0.59% VST position was established in Q2 2018 at prices between $19.50 and $24.50 and increased by ~30% in Q4 2018 at prices between $21 and $25.50. H1 2019 had seen a one-third selling at prices between $22 and $27. The stock currently trades at $19.60. This quarter saw a ~30% selling at prices between $12.60 and $23.50.Salesforce.com (CRM): CRM is a ~2% of the portfolio position established in H1 2019 at prices between $124 and $193 and the stock currently trades at ~$175. This quarter saw a ~7% trimming.Humana Inc. (HUM): This very small 0.57% position was reduced by ~20% this quarter.Kept Steady:None.The spreadsheet below highlights changes to Tepper’s 13F stock holdings in Q1 2020:Regulatory filings thru 2/20/2020: 13D – 2/18 – I – 10.45M shares – 7.4% of business – Tepper urged the company’s board to file for bankruptcy and challenge the FCC plan to clear C-band spectrum."