"Tracking David Tepper’s Appaloosa Management Portfolio – Q2 2017 Update"
"David Tepper’s 13F portfolio value increased from $6.09B to $6.74B this quarter.Allergan plc is the largest individual stock position at ~9% of the portfolio.Appaloosa added Alibaba while increasing Alphabet, Micron, and Facebook.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 08/14/2017. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q1 2017.This quarter, Tepper’s 13F portfolio value increased ~11% from $6.09B to $6.74B. The number of holdings increased from 53 to 58. The top-five individual stock positions are Allergan plc, Alphabet Inc., Alibaba Group Holdings, Micron Technology, and Williams Partners LP. Combined, they account for ~36% of the 13F holdings.To know more about Tepper's distress investing style, check out the book .New Stakes:Alibaba Group Holdings (BABA): BABA is a large (top three) 9.05% of the portfolio stake established this quarter at prices between $107 and $144 and the stock is now well above that range at $160.Powershares QQQ ETF (QQQ) and iShares Nasdaq Biotech ETF (IBB): QQQ is a 3.71% of the portfolio position purchased this quarter at prices between $130 and $144 and the ETF currently trades at $144. IBB is a small ~1% portfolio stake established at prices between $284 and $321 and it is now at $310.Dollar General (DG), Stryker Corp. (SYK), Energy Transfer Equity (ETE), L Brands (LB), Wells Fargo (WFC), and Cemex SAB ADR (CX): These are very small (less than ~1% of the portfolio each) stakes established this quarter.Stake Disposals:SPDR S&P500 ETF (SPY) Calls: A ~4% portfolio short position in SPY thru Puts established in Q4 016 was replaced last quarter with a ~5.8% long position in SPY thru Calls. The switch happened as the underlying traded between $224 and $240. The position was sold out this quarter as SPY traded between $233 and $245. It currently goes for $247.Regions Financial (RF): The 2.1% RF position was purchased in Q4 2016 at prices between $9.87 and $14.60 and increased by ~20% last quarter at prices between $13.50 and $16. The disposal this quarter was at prices between $13.34 and $14.66. It now goes for $14.34.Teva Pharmaceuticals (TEVA), Pfizer Inc. (PFE), and Mylan NV (MYL): These pharma stocks were established in Q4 2016, reduced last quarter, and sold out this quarter. TEVA was a ~1% position purchased at prices between $35 and $46 and reduced by ~55% last quarter at prices between $32 and $38. The disposal this quarter was at prices between $27.80 and $33. The stock is now at $17.49. The 1.7% PFE stake was established at prices between $30 and $34 and reduced by ~35% last quarter at prices between $31 and $35. The elimination this quarter was at prices between $31.75 and $34.50. It currently trades at $33.36. MYL is a 1.2% position purchased at prices between $34 and $39 and reduced by ~40% last quarter at prices between $35.50 and $45.50. It was eliminated this quarter at prices between $36.50 and $40. The stock currently trades at $30.47.Alps ETF Alerian MLP (AMLP), ArcelorMittal (MT), Charter Communications (CHTR), Goodyear Tire & Rubber (GT), McKesson Corp (MCK), and Symantec Corp. (SYMC): These are very small positions (less than ~1% of the portfolio each) disposed this quarter.Stake Increases:Alphabet Inc. (GOOG) (GOOGL): GOOG is the second-largest 13F equity stake at ~8% 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. This quarter saw a ~23% increase at prices between $824 and $984. The stock currently trades at $927.Micron Technology (MU): MU is now a large (top five) 5.71% portfolio stake. It was established in Q4 2016 at prices between $16.50 and $23.50 and doubled last quarter at prices between $21.50 and $29. The stake was almost doubled again this quarter at prices between $26.50 and $32.50. The stock is now at $30.69.Facebook Inc. (FB): FB is a large 5.28% 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. Last quarter saw a ~13% trimming at prices between $117 and $143. There was a ~24% increase this quarter at prices between $139 and $155. The stock currently trades at $170.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.Energy Transfer Partners LP (ETP): ETP is a 4.49% of the portfolio position. 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. This quarter saw a ~24% increase at prices between $18.50 and $24.50. The stock is now at ~$18.37.Western Digital (WDC): WDC is a 3.38% 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. Last quarter saw a ~16% increase at prices between $69 and $84 and that was followed with a stake-doubling this quarter at prices between $82 and $94. The stock is now at $85.85.Altaba Inc. (AABA) previously Yahoo: AABA is a ~4% of the portfolio position. It was first purchased in Q3 2016 at prices between $37.50 and $44. Last quarter saw a ~60% increase at prices between $38.50 and $47 and that was followed with a ~130% increase this quarter at prices between $46 and $56. The stock is now at $60.65.Apple Inc. (AAPL), Delta Air Lines (DAL), Hain Celestial (HAIN), Kennametal (KMT), Thermo Fisher Scientific (TMO), UnitedHealth (UNH), and United Rentals (URI): These are very small positions (less than ~1% of the portfolio each) that saw increases this quarter.Stake Decreases:Allergan plc (AGN): AGN is currently the largest position at ~9% 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. Q4 2016 saw another ~250% increase at prices between $188 and $243. The pattern reversed last quarter: ~30% selling at prices between $210 and $250 and that was followed with another ~15% reduction this quarter at prices between $219 and $249. The stock is now at $228.Williams Partners LP (WPZ): WPZ is a top-five 5.46% portfolio position purchased in Q4 2015 at prices between $23 and $35. The stock currently trades above that range at $38.08. Last quarter saw a ~5% increase while this quarter saw a ~8% trimming.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% the following quarter at prices between $88 and $118. The stock is now well above those ranges at $130. There was a ~9% trimming this quarter.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 2.48%. The stock currently trades at $67.21. Last three quarters saw a combined ~15% trimming at prices between $46.50 and $67. Tepper is harvesting gains.Allstate Corporation (ALL): The 2.23% Allstate stake was established over Q3 & Q4 2015 at prices between $57 and $69. Q4 2016 saw a ~17% selling at prices between $66.50 and $75 and that was followed with a ~30% reduction last quarter at prices between $73 and $83. The stock currently trades at $94.38. There was another ~8% trimming this quarter.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. Last four quarters also saw minor trimming. The stock trades at $25.64.Mohawk Industries (MHK): MHK is a 1.66% 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 $252. This quarter saw a ~18% selling at prices between $228 and $247.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 ~1.5% 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 ~20% reduction over the last two quarters. The stock is now at $21.33.Note: Tepper owns 4.7% of ABY.Kinder Morgan Inc. (KMI): KMI is a ~1% 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 the following quarter at prices between $19.50 and $23. There was another ~30% increase last quarter at prices between $19 and $23. This quarter saw an about turn: 25% selling at prices between $18.50 and $21.75. The stock currently goes for $18.71.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 $174. There was a ~15% trimming last quarter and that was followed with another ~20% selling this quarter.Southwest Airlines (LUV): LUV is now a very small a 0.57% position. It was first purchased in Q3 2015 at prices between $32 and $40.50 and the stake has wavered since. 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. Q4 2016 saw another reversal: stake doubled at prices between $38.50 and $51. There was a ~160% stake increase last quarter at prices between $49.50 and $59. This quarter saw the position reduced by two-thirds at prices between $53 and $62. The stock currently trades at $55.31.Boston Scientific (BSX), CBS Corporation (CBS), Centene Corp (CNC), General Motors (GM), HCA Healthcare (HCA), Nucor Corp (NUE), and Summit Materials (SUM): These small (less than ~1% of the portfolio each) positions were decreased this quarter.Note: GM is a frequently traded stock in Tepper’s portfolio.Kept Steady:Bank of America (BAC): The fairly large 3.16% BAC position was established last quarter at prices between $22 and $25.50 and the stock currently trades at $24.19. BAC is a frequently traded stock in Tepper’s portfolio.Terraform Power (TERP): TERP is a 1.55% portfolio stake established in Q4 2015 at prices between $7 and $20. The stock is now at $13.30.Following are the other minutely small stakes in the portfolio: Activision Blizzard (ATVI), Aerie Pharma. (AERI), Ally Financial (ALLY), Antero Resources (AR), Chesapeake Energy (CHK), Expedia Inc. (EXPE), Kayne Anderson MLP (KYN), NRG Energy (NRG), Peabody Energy (BTU), Range Resources (RRC), Rio Tinto plc (RIO), Southwestern Energy (SWN), 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 Q2 2017:Regulatory Filings thru 5/15/2017: None."