"Tracking David Tepper’s Appaloosa Management Portfolio – Q3 2020 Update"
"David Tepper’s 13F portfolio value decreased marginally from $5.76B to $5.66B this quarter.Appaloosa substantially increased PG&E during the quarter.PG&E Corp, Alibaba Group Holdings, T-Mobile US, Micron Technology, and Facebook 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 11/16/2020. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q2 2020.This quarter, Tepper’s 13F portfolio value decreased marginally from $5.76B to $5.66B. The number of holdings decreased from 36 to 31. The top five positions are PG&E Corp, Alibaba Group Holdings, T-Mobile US, Micron Technology, and Facebook. They add up ~54% 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:None.Stake Disposals:Broadcom Inc. (AVGO): AVGO was a 1.10% of the portfolio stake purchased in Q3 2019 at prices between $266 and $304 and the stock is currently at ~$383. Last two quarters had seen a ~27% selling at prices between $168 and $324. The disposal this quarter was at prices between $306 and $375.Humana Inc. (HUM), Qualcomm (QCOM), Tesla Inc. (TSLA), and Vistra Energy (VST): These small positions (less than ~1% of the portfolio each) were reduced last quarter and disposed this quarterStake Increases:PG&E Corp. (PCG): PCG is now the largest position at 13.54% of the portfolio. 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. 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. Q1 2020 also saw a one-third selling at prices between $7.25 and $18. That was followed with a ~20% reduction last quarter at prices between $8.87 and $12.53. This quarter saw the huge stake built at prices between $8.60 and $10. The stock is now at $12.66.Micron Technology (MU): The current ~10% 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. Last three quarters have also seen a ~50% stake increase at prices between ~$34.50 and ~$60. The stock currently trades at $61.40.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 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. Next quarter saw another ~45% stake increase at prices between $4.55 and $13.75. This quarter also saw a ~25% stake increase at prices between $5.40 and $7.15. The stock is now at ~$6 and the stake is at 1.82% of the portfolio.Microsoft (MSFT): The small 1.12% MSFT stake was built over the last two quarters at prices between $152 and $232. The stock currently trades at ~$210. This quarter also saw a ~9% stake increase.Stake Decreases:Alibaba Group Holdings (BABA): BABA is currently the second-largest 13F position at 11.54% 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 ~$271. There was a ~50% stake increase last quarter at prices between $187 and $229 while this quarter there was a one-third reduction at prices between ~$216 and ~$298.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): TMUS is a large (top three) ~11% of the portfolio position. A fairly large stake was purchased in Q4 2017 at prices between $55 and $64.50. The four quarters thru Q1 2019 saw the position sold down at prices between $58 and $78. The position was rebuilt last quarter at prices between $82 and $110. The stock is now at ~$130. This quarter saw a ~30% selling at prices between $104 and $119.Note: 1.55M shares of the increase last quarter were thru Rights exercise 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.Facebook Inc. (FB): FB is a top-five ~8% 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 had since wavered. Recent activity follows. Last three quarters have seen a ~40% selling at prices between $146 and $304. The stock is currently at ~$270.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.Amazon.com (AMZN): The large ~8% AMZN 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 ~50% selling over the last three quarters at prices between ~$1677 and ~$3531. The stock currently trades at ~$3100.Alphabet Inc. (GOOG) (GOOGL): GOOG is a large 6.69% 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: Last three quarters have seen a ~40% reduction at prices between ~$1054 and ~$1717. The stock currently trades at ~$1736.Twitter Inc. (TWTR) and: TWTR is a 3.67% of the portfolio stake purchased in Q1 2020 at prices between $22 and $39 and the stock currently trades at $44.68. This quarter saw a ~15% trimming.AT&T Inc. (T): T is a 2.33% of the portfolio stake established last quarter at prices between $27.50 and $33.23 and the stock currently trades at $28.32. This quarter saw a ~50% selling at prices between ~$28 and ~$31.Visa Inc. (V), MasterCard (MA), PayPal (PYPL), and Walt Disney (DIS): These were medium-sized new positions purchased last quarter but reduced this quarter. The 2.40% V stake was established at prices between $152 and $200 and the stock currently trades at ~$204. This quarter saw a ~20% selling at prices between ~$189 and ~$217. MA is a 2.65% of the portfolio position purchased at prices between $229 and $313 and it is now at ~$323. There was a ~20% reduction this quarter at prices between ~$290 and ~$366. The ~2% PYPL stake was established at prices between $91 and $177 and it currently goes for $193. This quarter saw a ~30% selling at prices between $170 and $211. DIS is a ~2% position purchased at prices between $94 and $127 and it currently trades at ~$141.  There was a ~25% reduction this quarter at prices between $112 and $136.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.HCA Healthcare (HCA): HCA is a ~2% of the 13F portfolio position built over the last two quarters at prices between $82 and $118. The stock is now at ~$147. This quarter saw a ~11% trimming.Salesforce.com (CRM): CRM is a 1.94% of the portfolio position established in H1 2019 at prices between $124 and $193 and the stock currently trades at ~$258. There was a ~12% trimming this quarter.Adobe Inc. (ADBE): ADBE is a 1.52% 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 had seen similar trimming. This quarter also saw similar selling at prices between $426 and $534. The stock currently trades at ~$463.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 ~$488.Alps Alerian MLP ETF (AMLP), Altria Group (MO), Boston Scientific (BSX), Emerson Electric (EMR), Enable Midstream (ENBL), Goodyear Tire & Rubber (GT), Square Inc. (SQ), Sysco Corp (SYY), Tenneco Inc. (TEN), UnitedHealth (UNH), Wells Fargo (WFC), and Western Midstream Partners (WES): These small (less than ~1.5% of the portfolio each) stakes purchased last quarter saw increases this quarter.Kept Steady:None.The spreadsheet below highlights changes to Tepper’s 13F stock holdings in Q3 2020:"