"Tracking David Tepper’s Appaloosa Management Portfolio – Q1 2016 Update"
"David Tepper’s US long equity portfolio increased from $5.01B to $5.66B this quarter.Energy Transfer Partners is the largest individual stock position at 9.24% of the portfolio. Energy and Airlines are the two major themes in the overall portfolio.The call option on S&P 500 ETF was marginally decreased while adding a new stake in Powershares QQQ Call in the 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 05/13/2016. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q4 2015.This quarter, Tepper’s US long equity portfolio increased 12.82% from $5.01B to $5.66B. The number of holdings decreased from 52 to 49. The top-five individual stock positions are Energy Transfer Partners LP, Alphabet Inc., Delta Air Lines, Williams Partners LP, and Whirlpool Corporation. Combined, they account for ~34% of the 13F holdings.To know more about Tepper's distress investing style, check out the book .New Stakes:Bank of America (BAC): BAC is a 1.67% of the US long portfolio stake established this quarter at prices between $11.16 and $16.83. The stock is currently at $14.52.Note: BAC has seen several roundtrips in the portfolio. The last was a very small position in Q2 2015 that was disposed of the following quarter.Facebook Inc. (FB): FB is a fairly large 3.28% of the portfolio position established this quarter at prices between $94 and $116 and the stock is now just outside that range at $117.Note: FB has seen a previous roundtrip. A fairly large ~3.5% stake was eliminated in Q4 2014 and that trade generated short-term gains.Hain Celestial (HAIN): HAIN is a very small ~1% stake purchased this quarter at prices between $33.46 and $41.46 and the stock currently trades well outside that range at $48.74.Mohawk Industries (MHK): MHK is a 1.87% of the US long portfolio position established at prices between $152 and $192 and it is now at $193.Note: MHK has seen several roundtrips. The last one was a very small stake purchased in Q1 2015 and disposed in Q3 2015.Powershares QQQ (QQQ) Calls: Long and Short positions against index ETFs are a regular occurrence in Tepper’s portfolio. The 1.93% stake established this quarter in Calls occurred when the underlying traded between $96 and $112. It is currently at $107.  The last roundtrip was in H1 2015: A huge 7.25% portfolio stake was established in Q1 2015 and disposed of the following quarter.Synchrony Financial (SYF): SYF is a 2.54% of the portfolio position established this quarter at prices between $24.48 and $30.41 and the stock is now at $29.87. The retail unit spinoff from General Electric (GE) started trading in July 2014 and has returned ~30% since.Twenty First Century Fox (FOX) (FOXA): FOX is a 1.94% of the US long portfolio stake purchased this quarter at prices between $24.21 and $28.20 and the stock currently trades just outside that range at $28.46.Stake Disposals:Apple Inc. (AAPL): AAPL was a 2.65% of the US long portfolio stake established in Q2 2015 at prices between $120 and $133. The following quarter saw a ~48% reduction at prices between $103 and $132 and the elimination this quarter was at prices between $93 and $110. The stock currently trades at $95.22.Note: Tepper has traded Apple frequently over the last four years: It became a significant presence in Q1 2012, when around 3.5M shares (split-adjusted) were purchased at prices between $60 and $87. The stake represented around 10% of the US long portfolio at the time. In Q4 2012, another 2.8M shares were purchased at prices between $73 and $94. The stock was consistently sold from the next quarter onwards and by Q4 2013 the position was at 1.5M shares. Most of the selling happened in Q1 2013 and Q2 2013 at prices between $56 and $75. Q1 2014 saw a 16% stake increase at prices between $71 and $80. In Q4 2014, the pattern reversed again: 31% reduction at prices between $92.93 and $103. The remaining 1.72% position was eliminated in Q1 2015 at prices between $96.26 and $119.Chicago Bridge & Iron (CBI): CBI was first purchased in Q2 2013. Around 1.5M shares were acquired at the time for around $56 per share. The position had wavered since although it still accounted for ~1.4M shares last quarter.  The stake was sold out this quarter at prices between $31.52 and $39.72. The stock currently trades at $36.59. Tepper realized losses from this position.Eastman Chemical (EMN): EMN was a small 0.94% of the US long portfolio position. It saw a huge ~92% increase in Q1 2015 at prices between $68.64 and $76.48. The stake was eliminated this quarter at prices between $58.44 and $73.72. The stock currently trades at $73.28.Mylan NV (MYL): MYL was a very small 0.92% stake. It was established in Q2 2015 at prices between $58 and $76 and reduced by ~53% the following quarter at prices between $39.80 and $71.49. Last quarter, the pattern reversed: ~82% increase at prices between $39 and $55. The elimination this quarter was at prices between $41.42 and $53.93. The stock is now at $41.51.Priceline Group Inc. (PCLN): PCLN was a 2.80% of the US long portfolio position. It was established in Q1 2014 at prices between $1113 and $1370. In Q2 2014, the stake was increased by over 70% at prices between $1108 and $1292. In Q1 2015, the pattern reversed with a ~25% reduction at prices between $1108 and $1268. Q3 2015 saw a further ~57% reduction at prices between $1117 and $1352. The remaining stake was sold out this quarter at prices between $974 and $1351. The stock currently trades at $1249.United Continental Holdings (UAL): UAL was a large 4.68% of the US long portfolio stake in Q4 2014. The bulk of the stake was established in Q1 2012 at prices between $18.21 and $25. Q1 2015 saw a ~19% reduction at prices between $63.83 and $73.62 and that was followed with a huge ~62% reduction in the following quarter at prices between $51.23 and $67.25. Q3 2015 saw another ~69% reduction at prices between $51.50 and $61.56. The pattern reversed last quarter: ~28% increase at prices between $50.78 and $61.49. The remaining stake was still very small at 0.69% of the portfolio.  It was sold out this quarter at prices between $45 and $61 and the stock is now at $44.49 - Tepper harvested gains.Hewlett Packard Enterprise (HPE): HPE was a very small ~1% portfolio stake established last quarter and disposed of this quarter.Stake Increases:Allstate Corporation (ALL): The ALL stake was established in Q3 2015 at prices between $57 and $69 and increased by ~360% last quarter at prices between $58 and $65. The stock currently trades at $67.15. The position is now at 3.80% of the portfolio. This quarter saw a ~9% further increase. The activity indicates a clear bullish bias.Delta Airlines (DAL):  DAL is the third-largest position at 7.40% of the portfolio. It was first purchased in 2012 at a cost-basis in the high single digits. The position has wavered since. Q3 2015 saw a ~42% increase at prices between $40 and $48 and that was followed with a ~21% increase last quarter at prices between $44 and $52. This quarter also saw a ~17% further increase at prices between $40.77 and $50.69. The stock currently trades at $43.10. Tepper has huge unrealized gains on this position.Alphabet Inc. (GOOG) (GOOGL) previously Google: GOOG 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 2015 saw a large 56% reduction at prices between $520 and $565 and that was followed with a ~47% reduction in Q3 2015 at prices between $517 and $673. Last quarter saw an about turn: ~190% increase at prices between $608 and $777. The stock currently trades at $710 and the stake is now the second-largest individual stock position at 7.91% of the portfolio. This quarter saw a ~12% further increase.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 increased by ~118% in Q1 2015 at prices between $27.02 and $31.41. Last quarter saw another ~41% increase at prices between $28 and $32. It currently trades at $33.38. The stake is now at 1.94% of the portfolio. This quarter saw a very minor ~4% increase.NXP Semiconductors (NXPI): NXPI was a top five stake at 6.98% of the US long portfolio as of Q3 2015. The stake saw a ~38% increase that quarter at prices between $79.26 and $99.28. It was sold down by ~65% last quarter at prices between $73 and $98. The pattern reversed this quarter: ~81% increase at prices between $64 and $83. The original stake was from Q3 2014 at prices between $60.50 and $73.01. The stock currently trades at $88.39 and the stake is at 2.07%.Southwest Airlines (LUV): LUV is a 3.45% position purchased in Q3 2015 at prices between $32.36 and $40.45. Last quarter saw a ~160% increase at prices between $38 and $50. The stock currently trades at $42.19. This quarter also saw a marginal increase.Triumph Group (TGI): TGI is a very small 0.67% of the portfolio stake. The bulk of the position was purchased in Q1 2014 at prices between $62 and $79. Last two quarters had seen minor increases while this quarter saw a one-third further increase at prices between $23.53 and $40.03. The stock currently trades at $36.41.Atlantica Yield plc (ABY), Alps ETF Alerian MLP (AMLP), Energy Transfer Partners LP (ETP), Terraform Power (TERP), and Williams Partners LP (WPZ): These energy sector stakes were established last quarter and increased this quarter. Combined, the total position is at ~20% of the portfolio. This is compared to ~11% as of last quarter. ETP and WPZ saw huge 215% and 450% increases respectively this quarter.Allergan plc (AGN), Community Health Systems (CYH), and Pfizer Inc. (PFE): These healthcare names were first purchased last quarter. All three saw increases this quarter. PFE saw a marginal 4% increase. The AGN stake was increased by ~86% at prices between $266 and $313 and the stock is now well below that range at $229. CYH position saw a huge 600% increase at prices between $14.56 and $26.53 and the stock is now well below that range at $12.75. The AGN, CYH, and PFE stakes are currently at 1.32%, 2.34%, and 1.32% respectively. For investors attempting to follow Tepper, CYH is a good option to consider for further research.Southwest Energy (SWN): SWN is a very small 0.63% of the portfolio position that saw a marginal increase this quarter.Stake Decreases:General Motors (GM): GM was Appaloosa’s largest 13F individual stock position at 8.54% of the US long portfolio as of last quarter. It was reduced by ~81% this quarter at prices between $26.90 and $34.01. The bulk of the original stake was purchased in Q1 2012 and Q2 2012 at prices between $21 and $27. Q1 2014 saw a ~60% increase at prices between $34 and $41 and the following quarter the position was increased by another two-thirds at prices between $32 and $37. Q1 2015 also saw a ~25% increase at prices between $32.62 and $38.87. The pattern reversed in Q3 2015: roughly one-third reduction at prices between $27.28 and $33.33. The stock currently trades at $30.56.Goodyear Tire & Rubber (GT): GT is a very long-term 0.56% 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 stake has been sold down since. Q3 2015 saw a ~41% reduction at prices between $27.83 and $32.66 and that was followed with another ~64% reduction last quarter at prices between $29 and $35. The pattern continued this quarter with another ~55% reduction at prices between $26.34 and $33.07. The stock currently trades at $27.17. Tepper is harvesting huge long-term gains from this position.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. The position has doubled and it currently trades at $77.12. Q2 20115 saw a ~15% reduction at prices between $73.61 and $91.84 and that was followed with a similar reduction the following quarter at prices between $74 and $95. Last quarter, the pattern reversed: ~28% increase at prices between $64 and $79.  This quarter saw a ~30% reduction at prices between $62.83 and $78.10.Ingersoll-Rand (IR): IR is a ~0.80% portfolio stake established in Q3 2015 at prices between $50.61 and $68.76 and increased by ~51% last quarter at prices between $50.69 and $60.21. The pattern reversed this quarter: ~30% reduction at prices between $48.80 and $62.07. The stock currently trades at $64.20.Owens Corning (OC): The original OC stake was established in Q1 2012 & Q2 2012 at prices between $29 and $37. Q4 2014 saw a ~14% reduction at prices between $29 and $36.80 while in Q2 2015 there was a ~22% increase at prices between $38.31 and $43.40. The stake is now at 2.80%. The stock currently trades at $50.99. This quarter saw a marginal reduction.Kinder Morgan Inc. (KMI), PPG Industries (PPG), and Range Resources (RRC): These very small ~1% positions were established last quarter but reduced this quarter. KMI saw a ~50% reduction while PPG & RRC saw modest ~10% reductions. KMI and RRC are part of the huge “energy basket” established last quarter.SPDR S&P 500 ETF (SPY) & Calls: SPY was the largest position at 22% of the US long portfolio in Q1 2014. The stake was drastically reduced in Q2 2014 from 22% to 3.84%. In Q4 2014, the remaining stake was almost eliminated. A similar pattern of trading played out over H1 2015: a huge stake increase to a 16.38% portfolio stake (nominal) using SPY Calls in Q1 2015 followed by liquidation the following quarter. Last quarter saw another stake increase primarily through SPY Calls. This quarter saw a marginal reduction. SPY is currently at $206 and the stake is large at 9.89% of the portfolio.United Rentals (URI): URI was first purchased in Q1 2015 at prices between $82.31 and $104 and increased by ~17% the following quarter at prices between $87.24 and $105. Q3 2015 saw a further ~39% increase at prices between $59.48 and $87.62. The pattern reversed this quarter: ~25% reduction at prices between $43.34 and $72.54. It now trades at $65.29. The stake is now at 0.64% of the US long portfolio.Whirlpool Corporation (WHR): WHR is a fairly large (top-five) ~4.50% 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: ~15% reduction at prices between $140 and $194. The following quarter saw another one-third reduction at prices between $187 and $215. Last quarter saw a ~43% increase at prices between $142 and $167 while this quarter saw ~12% trimming. The stock currently trades at $168.Kept Steady:Huntsman Corporation (HUN): HUN is a 1.89% 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. The stake is now at 8M shares and the stock trades at $14.12. Q1 2015 saw a one-third increase at prices between $21.26 and $24.40.WMIH Corp. (WMIH): WMIH is a 0.70% stake established in Q3 2015 at prices between $2.26 and $2.87. The stock is now at $2.34.Following are the other minutely small stakes in the portfolio: Antero Resources (AR), Cabot Oil & Gas (COG), Clearbridge Energy MLP (CEM), Kayne Anderson MLP (KYN), Teekay Offshore (TOO), Tenet Healthcare (THC), Terraform Global (GLBL), and Valeant Pharmaceuticals (VRX). Appaloosa’s 13F portfolio also has minutely small stakes in General Motors and Kinder Morgan Warrants.The spreadsheet below highlights changes to Tepper’s US stock holdings in Q1 2016:"