"Tracking David Tepper’s Appaloosa Management Portfolio – Q3 2021 Update"
"David Tepper’s 13F portfolio value decreased from $4.83B to $4.20B this quarter.Appaloosa increased Macys & Goodyear Tire while reducing Amazon, Micron, and Visa.Alphabet, Meta Platforms, T-Mobile US, Amazon, and Occidental Petroleum 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 11/15/2021. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q2 2021.This quarter, Tepper’s 13F portfolio value decreased ~13% from $4.83B to $4.20B. The number of holdings decreased from 50 to 48. The top five positions are Alphabet, Meta Platforms, T-Mobile US, Amazon, and Occidental Petroleum. They add up to ~37% of the portfolio. To know more about Tepper's distress investing style, check out the book .New Stakes:Alight Inc. (ALIT), Wal-Mart Inc. (WMT), and Ovintiv Inc. (OVV): These are the new positions this quarter. ALIT is a 2.19% of the portfolio stake purchased at prices between ~$8.50 and ~$13 and the stock currently trades at $10.32. WMT and OVV are minutely small (less than ~0.35% of the portfolio each) stakes.Note: Bloomberg reported that Alight had held merger talks with Voya Financial (VOYA) in August. Alight went public in July through a De-SPAC merger with Foley Trasimene Acquisition.Stake Disposals:ViacomCBS (VIAC): The 1.38% VIAC stake was purchased in Q1 2021 at prices between ~$36.60 and ~$100 and it is now at $29.56. There was a ~55% selling last quarter at prices between ~$38 and ~$46. The disposal this quarter was at around the same price range.Netflix Inc. (NFLX): The 0.72% NFLX stake was established in Q1 2020 at prices between ~$300 and ~$390. Last five quarters had seen a ~75% selling at prices between ~$360 and ~$586. The remaining position was eliminated this quarter at prices between ~$511 and ~$610. The stock is now at ~$617.BP plc (BP), Emerson Electric (EMR), and Royal Dutch Shell (RDS.A) (RDS.B): These small (less than 1.5% of the portfolio each) stakes were sold during the quarter.Stake Increases:Alphabet Inc. (GOOG) (GOOGL): GOOG is currently the largest 13F position at 9.33% 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: Q1-Q3 2020 saw a ~40% reduction at prices between ~$1054 and ~$1717. That was followed with a ~43% reduction over the last two quarters at prices between ~$1736 and ~$2546. The stock currently trades at ~$2859. There was a marginal increase this quarter.T-Mobile US (TMUS): TMUS is currently at 7.74% of the portfolio. 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 in Q2 2020 at prices between $82 and $110. Next quarter saw a ~30% selling at prices between $104 and $119. That was followed with a ~52% reduction over the last three quarters at prices between ~$110 and ~$147. The stock is now at ~$110. There was a marginal increase this quarter.Note: 1.55M shares of the increase in Q2 2020 were through 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. Appaloosa had a 6.4M share position in Sprint for which they received ~600K shares.Occidental Petroleum (OXY): OXY is a 4.68% of the portfolio stake established in Q4 2020 at prices between ~$8.90 and ~$21.30 and the stock currently trades well above that range at $29.65. Last quarter saw a roughly one-third selling at prices between ~$23.20 and ~$32.90 while this quarter there was a ~15% stake increase at prices between ~$22 and $33.D R Horton (DHI) and Pulte Group (PHM): The 2.39% DHI stake was purchased in Q1 2021 at prices between ~$66 and ~$91 and it currently trades at $103. Last two quarters have seen only minor adjustments. The 1.70% PHM position was established last quarter at prices between ~$53 and ~$62 and it is now at $52.49. There was a marginal increase this quarter.Goodyear Tire & Rubber (GT), Macys Inc. (M), and SPDR S&P Oil & Gas ETF (XOP): These three stakes were substantially increased this quarter. GT is a 2.19% of the portfolio position that saw a roughly two-thirds stake increase this quarter at prices between $14.50 and $19.25. The stock currently trades at $20.88. The 3.77% Macys stake was almost doubled this quarter at prices between ~$16 and ~$25. The stock is now at $27.70. XOP is a 2.33% position that saw a one-third increase this quarter at prices between ~$73 and ~$99. The stock currently goes for $96.56.Antero Resources (AR), EQT Corp (EQT), and Kohls Corp (KSS): These three small (less than ~1.7% of the portfolio each) stakes saw substantial increases this quarter.Stake Decreases:Meta Platforms (FB) previously Facebook: FB is a top-three 9.24% 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-Q3 2020 had seen a ~40% selling at prices between $146 and $304. Q4 2020 saw a ~14% stake increase while the last three quarters saw a ~45% selling at prices between ~$246 and ~$382. The stock is currently at ~$310.Note: FB has seen 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 (top five) 5.48% 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 from Q1-Q3 2020 at prices between ~$1677 and ~$3531. Q4 2020 saw an about turn: ~40% stake increase at prices between ~$3005 and ~$3444. There was a two-thirds selling over the last three quarters at prices between ~$2952 and ~$3731. The stock currently trades at ~$3437.Micron Technology (MU): MU is currently a 4.65% of the portfolio position. The 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. The next three quarters had also seen a ~50% stake increase at prices between ~$34.50 and ~$60. There was a ~78% selling over the last four quarters at prices between ~$46.50 and ~$96. The stock currently trades at $82.88.Note: MU is a frequently traded stock in Tepper’s portfolio.PG&E Corp. (PCG): The 3.23% PCG stake 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. The position has since wavered. Recent activity follows. Q3 2020 saw a huge stake built at prices between $8.60 and $10 while the last four quarters saw a ~85% selling at prices between ~$8.30 and ~$12.50. The stock is now at ~$12.SPDR Energy ETF (XLE): The 2.74% XLE stake was purchased in Q4 2020 at prices between $27.70 and $41.60. The position was increased by ~40% next quarter at prices between ~$38 and ~$54 while last quarter saw similar selling at prices between ~$47 and ~$56. The stock is now at $55.58. This quarter also saw a minor ~5% reduction.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 three quarters saw the stake again doubled at prices between $4.55 and $13.75 while last quarter saw a ~45% selling at prices between ~$7.70 and ~$11.35. The stock is now at $8.32 and the stake is at 2.31% of the portfolio. This quarter also saw a minor ~4% trimming.HCA Healthcare (HCA): HCA is a 2.24% of the 13F portfolio position built in H1 2020 at prices between $82 and $118. The stock is now well above that range at ~$232. Q3 2020 saw a ~11% trimming while next quarter there was a ~7% increase. There was a ~60% reduction last quarter at prices between ~$186 and ~$216. There was a minor ~4% trimming this quarter.Uber Technologies (UBER): UBER is a 2.08% of the portfolio stake purchased last quarter at prices between ~$44 and ~$61 and the stock currently trades below that range at $38.12. There was minor trimming this quarter.Freeport McMorran (FCX) and Mosaic Inc. (MOS): The 1.47% FCX position was purchased over the last three quarters at prices between ~$15 and ~$45. The stock is now at $37.10. MOS is a 1.63% of the portfolio stake built over the last two quarters at prices between ~$23.50 and ~$37.50 and it is now at $34.64. Both stakes saw minor trimming this quarter.Microsoft (MSFT): The ~2% MSFT stake was built in H1 2020 at prices between $152 and $232. Q4 2020 saw a ~80% stake increase at prices between ~$202 and ~$225. Last two quarters had seen a ~45% selling at prices between ~$212 and ~$272. The stock currently trades at ~$330. This quarter also saw a ~5% trimming.Alibaba Group Holdings (BABA): The 1.85% BABA stake was established in Q3 2019 at prices between $154 and $183 and increased by ~85% next quarter at prices between $162 and $217. There was a ~50% stake increase in Q2 2020 at prices between $187 and $229 while next quarter there was a one-third reduction at prices between ~$216 and ~$298. Last four quarters have seen another ~75% selling at prices between ~$145 and ~$310. The stock currently trades at ~$122.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.Twitter Inc. (TWTR): TWTR is a 1.78% of the portfolio stake purchased in Q1 2020 at prices between $22 and $39 and the stock currently trades well above that range at $42.65. Q3 2020 saw a ~15% trimming while next quarter there was a marginal increase. Last two quarters had seen a ~73% selling at prices between ~$45 and ~$78. There was a minor ~5% trimming this quarter.Qualcomm (QCOM): QCOM is a 1.51% of the portfolio position established in Q4 2020 at prices between ~$116 and ~$159. The stake was increased by ~25% next quarter at prices between ~$123 and ~$165. Last quarter saw a one-third selling at prices between ~$125 and ~$143. The stock currently trades at ~$177. This quarter saw a ~5% trimming.Visa Inc. (V) and MasterCard (MA),: These two positions established in Q2 2020 saw substantial selling in the last few quarters. The 1.39% Visa stake was established at prices between $152 and $200 and the stock currently trades at ~$198. Q3 2020 saw a ~20% selling at prices between ~$189 and ~$217. That was followed with a roughly ~85% reduction over the last three quarters at prices between ~$193 and ~$251. MA is a ~1% of the portfolio position purchased at prices between $229 and $313 and it is now at ~$320. There was a ~20% reduction in Q3 2020 at prices between ~$290 and ~$366. Last three quarters have seen another two-thirds selling at prices between ~$315 and ~$396.Chesapeake Energy (CHK) & wts,: CHK is a 0.62% of the portfolio position established in Q1 2021 as the company emerged from Chapter 11 bankruptcy. Appaloosa had senior debt that got converted. Shares started trading at ~$45 in mid-February and currently goes for $60.88. The commons portion of the stake was reduced by ~85% last quarter at prices between ~$43 and ~$56. This quarter saw another ~20% reduction at prices between ~$49 and ~$63.APA Corporation (APA), Alliance Data Systems (ADS), Alps Alerian MLP ETF (AMLP), CarMax Inc. (KMX), Enterprise Product Partners (EPD), iShares MSCI South Korea ETF (EWY), MPLX LP (MPLX), Sysco Corp (SYY), UnitedHealth (UNH), and Western Midstream Partners (WES): These small (less than ~1.75% of the portfolio each) stakes were reduced during the quarter.Kept Steady:Paysafe Limited (PSFE): PSFE is a 1.57% of the portfolio position established in Q1 2021 at prices between $13.50 and $19.24 and it is now well below that range at $3.62. There was a ~15% trimming this quarter.Note: Paysafe started trading at the end of March following the close of their de-SPAC transaction with Foley Trasimane II (BFT).Altimeter Growth 2 (AGCB), Dragoneer Growth 2 (DGNS), E2Open Parent Holdings (ETWO), The Beachbody Company (BODY), and TCV Acquisition (TCVA): These very small (less than ~0.60% of the portfolio each) stakes were kept steady this quarter.The spreadsheet below highlights changes to Tepper’s 13F stock holdings in Q3 2021:Source: John Vincent. Data constructed from Appaloosa’s 13F filings for Q2 2021 and Q3 2021."