"Tracking David Tepper’s Appaloosa Management Portfolio – Q2 2015 Update"
"David Tepper’s US long equity portfolio decreased from $5.70B to $4.04B this quarter.General Motors is by far the largest individual stock position at 15.52% of the portfolio.Appaloosa’s huge stakes in QQQ and SPY Calls were almost eliminated this 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 08/14/2015. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q1 2015.This quarter, Tepper’s US long equity portfolio decreased ~29% from $5.70B to $4.04B - the zig-zag pattern continues - last quarter saw an increase from $4.05B to $5.7B while the quarter before that saw a huge decrease. The number of holdings decreased from 38 to 34. The huge leveraged bets on S&P 500 and Nasdaq 100 indexes through call options on their ETFs established last quarter were almost eliminated this quarter. The top-five individual stock positions are General Motors (15.52%), HCA Holdings (9.40%), Apple Inc. (7.82%), Goodyear Tire & Rubber (7.46%), and Priceline Group (6.55%). Combined, they account for ~47% of the entire 13F holdings.New Stakes:Apple Inc. (AAPL): AAPL is a large (top-three) 7.82% of the US long portfolio stake established this quarter at prices between $120 and $133. The stock currently trades at $113.Note: Apple is in the portfolio after a quarter’s gap: 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.Alibaba Group (BABA): BABA is a 2.77% of the US long portfolio position established this quarter at prices between $80 and $94. The stock currently trades well below that range at $70.32.Note: BABA had a recent round-trip in the portfolio: It was a very small 0.95% of the US long portfolio stake established in Q3 2014 at prices between $86.10 and $93.89 and disposed of the following quarter at prices between $84.95 and $119.Bank of America (BAC) & Mylan NV (MYL): These are small (less than 2% of the portfolio each) stakes established this quarter. BAC is a very small 0.81% position purchased at prices between $15.41 and $17.67 and the stock currently trades at $16.73. MYL is a 1.66% stake established at prices between $58 and $76 and the stock is now at $53.03.Stake Disposals:Lorillard Inc. (LO): LO was a ~1% of the US long portfolio position established in Q3 2014 at prices between $59 and $67. Q4 2014 saw a ~24% reduction at prices between $58 and $64 and last quarter saw another ~22% decrease at prices between $62 and $70.Note: On July 15, 2014 Reynolds American (RAI) agreed to acquire LO in a cash-and-stock deal valued at $24B ($50.50 cash and 0.2909 in RAI stock) and that transaction closed in June.Micron Technology (MU): A 1.69% MU stake was purchased last quarter at prices between $26.57 and $35 and eliminated this quarter at prices between $18.73 and $29.52. The stock is currently at $14.74.Powershares QQQ Trust (QQQ) Calls: QQQ Calls were a fairly large 7.25% (nominal value) of the US long portfolio position established last quarter and eliminated this quarter. QQQ traded between $100 and $109 last quarter and between $105 and $111 this quarter. It currently trades at $107.Stake Increases: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. Last quarter saw a marginal increase and that was followed by a ~22% increase this quarter at prices between $38.31 and $43.40. The stake is now at 3.67%. The stock currently trades at $46.General Motors (GM): GM is Appaloosa’s largest 13F individual stock position at 15.52% of the US long portfolio. 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. Last quarter also saw a ~25% increase at prices between $32.62 and $38.87. The stock currently trades at $30.84. This quarter saw a minor further increase.Chicago Bridge & Iron (CBI): CBI has been in the portfolio since Q2 2013. Around 1.5M shares were purchased for around $56 at that time. The stake had since been sold down to 1.23M shares (1.43% of the US long portfolio) as of Q1 2014. In Q2 2014, the position was increased by ~22% at prices between $65.51 and $87.65 and Q3 2014 saw another ~10% increase at prices between $57.85 and $70. In Q4 2014, the stake saw a ~18% reduction at prices between $37.78 and $57.85 and last quarter the pattern continued with a ~11% reduction at prices between $34.51 and $49.48. The stock currently trades at $45.33. This quarter saw a marginal increase.JetBlue Airways (JBLU) and United Rentals (URI): These two positions were established last quarter and increased this quarter. JBLU was established at prices between $14.38 and $19.58 and increased by ~5% this quarter. The stock currently trades at $22.97. URI was purchased at prices between $82.31 and $104 and increased by ~17% this quarter at prices between $87.24 and $105. It now trades at $64.55. JBLU and URI stakes are now at 2.54% and 1.30% of the US long portfolio respectively.Stake Decreases:Google Inc. (GOOG) (GOOGL): GOOG was Appaloosa’s second-largest individual stock position at 7.73% of the US long portfolio last quarter. 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 (split-adjusted). It was increased by 22% in Q2 2014 as well at prices between $510 and $579. Q4 2014 saw an about-turn as around 19% of the position was sold at prices between $495 and $577 and last quarter saw a further ~8% reduction at prices between $493 and $575. This quarter saw a large 56% further reduction at prices between $520 and $565. The stock currently trades at $647 and the stake is now at 4.50% of the portfolio.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. It currently trades at $87.05. It is the second-largest individual stock position at 6.47% of the US long portfolio. This quarter saw a ~15% reduction at prices between $73.61 and $91.84. Tepper is starting to harvest huge long-term gains.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% last quarter at prices between $27.02 and $31.41. This quarter saw a ~12% trimming at prices between $31.16 and $35.50 and it currently trades at $33.75. The stake is now at 2.18% of the portfolio.Masco Corporation (MAS): The original MAS stake was almost doubled in Q2 2014 at prices between $19.54 and $22.89. Q3 2014 saw a ~6% reduction at prices between $20.27 and $24.44 and the following quarter saw a further ~21% reduction at prices between $20.86 and $25.40. This quarter saw another ~45% reduction at prices between $25.65 and $27.92. The stock currently trades at $27.24 and the stake is now at 1.56% of the portfolio.Priceline Group Inc. (PCLN): PCLN is a large (top-five) 6.55% of the US long portfolio position 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 and Q3 2014 saw a further ~16% increase at prices between $1154 and $1309. In Q4 2014, there was an about-turn as the position was reduced by ~14% at prices between $1040 and $1206 and that was followed with a ~25% reduction this quarter at prices between $1108 and $1268. The stock currently trades at $1258.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 when SPY traded between $186 and $209. A similar pattern of trading played out over the last two quarters: a huge stake increase to a 16.38% portfolio stake (nominal) using SPY Calls last quarter followed by liquidation this quarter. SPY traded between $199 and $212 last quarter and between $205 and $214 this quarter.  It currently trades at $204.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. Last quarter saw a ~19% reduction at prices between $63.83 and $73.62 and that was followed with a huge ~62% reduction this quarter at prices between $51.23 and $67.25. The stock currently trades at $56.62. Tepper is harvesting huge long-term gains from this position and the remaining stake is at 1.99% of the portfolio.Delta Airlines (DAL):  DAL is a 4.34% stake that was increased by around 17% in Q3 2014 at prices between $35.61 and $40.93. The following quarter saw a ~57% reduction at prices between $30.90 and $49.23. Last quarter saw an about-turn: ~45% increase at prices between $43.42 and $50.70. This quarter saw a ~9% trimming at prices between $40.57 and $47.40. The stock currently trades at $45.73.Eastman Chemical (EMN): EMN is a small 1.74% of the US long portfolio position. It saw a huge ~92% increase last quarter at prices between $68.64 and $76.48. This quarter saw a minor reduction. The stock currently trades at $73.89.NXP Semiconductors (NXPI): NXP is a 4.04% of the US long portfolio position established in Q3 2014 at prices between $60.50 and $73.01. It was reduced by ~22% last quarter at prices between $72 and $108 and another ~9% this quarter at prices between $95.33 and $112. The stock currently trades at $82.02.Note: In March, NXP agreed to acquire Freescale Semiconductor (FSL).Whirlpool Corporation (WHR): WHR is a fairly large ~4.76% of the US long portfolio position. Q3 2014 saw a stake doubling at prices between $139 and $156. Q1 2014 also saw a 125% increase at prices between $127 and $159. In Q4 2014, the pattern reversed: ~15% reduction at prices between $140 and $194. Last quarter saw another one-third reduction at prices between $187 and $215. This quarter also saw a minor reduction. The stock currently trades at $183. Appaloosa is harvesting huge gains from this position.Axial Corporation (AXLL), Regions Financial (RF), KBR Inc. (KBR), and USG Corporation (USG): These are very small positions (less than ~1% of the US long portfolio) that were further reduced this quarter.Kept Steady:Goodyear Tire & Rubber (GT): GT is a very long-term top-five 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. Last two quarters had seen a ~13% reduction at prices between $20 and $29. The stock currently trades at $31.14 and the stake is now at 7.46% (~10M shares) of the portfolio.Huntsman Corporation (HUN): HUN is a 4.42% 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 $16.57. Last quarter saw a one-third increase at prices between $21.26 and $24.40.Triumph Group (TGI): TGI is a very small 1.36% of the portfolio stake. It was increased by ~10% last quarter at prices between $53.96 and $67.22 and the stock currently trades at $51.21. The bulk of the position was purchased in Q1 2014 at prices between $62 and $79.D R Horton Inc. (DHI), Lennar Corporation (LEN), Mohawk Industries (MHK), Ryland Group (RYL), and Terex Corporation (TEX): These are very small (less than ~1% of the portfolio each) stakes kept steady this quarter.Appaloosa’s 13F portfolio also has minutely small stakes in Bank of America (BAC) and General Motors Warrants.The spreadsheet below highlights changes to Tepper’s US stock holdings in Q2 2015:"