In this article, we discuss billionaire David Tepper’s 10 newest stock picks.
David Tepper is an American billionaire and hedge fund manager. One of Tepper’s very first jobs was at Republic Steel as a financial analyst, where he experienced the financial structure of the distressed company. His experience with junk bonds in Goldman Sachs resulted in his investment in distressed bank bonds during the market crash of 1989, saving Goldman Sachs from bankruptcy due to his newly founded investment strategy. Similarly, in the financial crisis of 2008, he invested in depressed and beaten down bank securities and delivered a 132% return to shareholders in 2009. As of October 2021, Tepper’s real-time net worth stands at $15.8 billion.
He founded his hedge fund, Appaloosa Management, in 1993 with $57 million in the capital. Taking his investment philosophy further, Tepper started investing in the debt of companies in distress, which he believed could generate positive returns with equity ownership. Due to these strategies, Appaloosa Management returned 57% in the first six months, with assets reaching $300 million in 1994. In 2014, the firm’s assets grew to $20 billion and delivered a 20% return in 2016. In 2019, the hedge fund’s assets fell to $14 billion, of which 70% belonged to Tepper.
As of Q2 2021, Appaloosa Management’s 13F portfolio is worth $4.8 billion, a 30% decrease from the first quarter of 2021. The hedge fund invests in technology, services, and basic materials, while financial, healthcare, utilities, and industrial goods also make up small sections of the portfolio. The top five holdings represent 43% of the portfolio. Some of the notable stocks in David Tepper’s 13F portfolio include Amazon.com, Inc. (NASDAQ:AMZN), Facebook, Inc. (NASDAQ:FB), Alphabet Inc. (NASDAQ:GOOG), Twitter, Inc. (NYSE:TWTR), and Microsoft Corporation (NASDAQ:MSFT).
However, in this article, we’ll focus on Tepper’s newest stock picks.
Our Methodology:
Let’s analyze our list of billionaire David Tepper’s newest stock picks. The stocks mentioned below are the companies that have been added to Tepper’s 13F portfolio in Q1 and Q2 of 2021.
David Tepper
Why pay attention to hedge fund sentiment while choosing stocks?
Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by wide margins. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Billionaire David Tepper’s 10 Newest Stock Picks
10. TCV Acquisition Corp. (NASDAQ:TCVA)
Appaloosa Management LP’s Stake Value: $5,946,000
Percent of Appaloosa Management LP’s 13F Portfolio: 0.12%
Number of Hedge Fund Holders: N/A
TCV Acquisition Corp. (NASDAQ:TCVA) is a global investment firm, founded in 2021. The company ranks tenth on our list of billionaire David Tepper’s newest stock picks.
Appaloosa Management bought 600,000 shares in TCV Acquisition Corp. in Q2 2021, valued at roughly $6 million. The company currently represents 0.12% of the hedge fund’s 13F portfolio. TCV Acquisition Corp. has a market cap of $500.78 million. Cadian Capital and Tiger Global Management LLC are the company’s leading shareholders, with 2.75 million and 2.5 million shares, respectively.
Like Amazon.com, Inc., Facebook, Inc., Alphabet Inc., Twitter, Inc., and Microsoft Corporation, TCV Acquisition Corp. is one of the notable stocks in Appaloosa Management’s 13F portfolio in Q2.
9. Antero Resources Corporation (NYSE:AR)
Appaloosa Management LP’s Stake Value: $26,753,000
Percent of Appaloosa Management LP’s 13F Portfolio: 0.55%
Number of Hedge Fund Holders: 33
Antero Resources Corporation (NYSE:AR) ranks ninth on our list of billionaire David Tepper’s newest stock picks. It is an American company that specializes in the exploration of hydrocarbon.
Appaloosa Management started building its position in Antero Resources Corporation in the first quarter of 2021 and currently holds over 1.7 million shares in the company, valued at $26.7 million. The company represents 0.55% of the hedge fund’s 13F portfolio. This September, Northland raised its price target on Antero Resources Corporation to $32, while keeping an ‘Outperform’ rating on the shares. The firm’s analyst believes that the company is well-positioned to benefit from a gas rally in the coming months. Since the beginning of the year, Antero Resources Corporation delivered a 238.2% return to shareholders, while the stock gained 410.9% in the past year.
As of Q2 2021, 33 hedge funds tracked by Insider Monkey have positions in Antero Resources Corporation, the same as in the previous quarter. These stakes are valued at over $841 million.
Like Amazon.com, Inc., Facebook, Inc., Alphabet Inc., Twitter, Inc., and Microsoft Corporation, Antero Resources Corporation is also favored by investors in 2021.
8. Chesapeake Energy Corporation (NASDAQ:CHK)
Appaloosa Management LP’s Stake Value: $27,305,000
Percent of Appaloosa Management LP’s 13F Portfolio: 0.56%
Number of Hedge Fund Holders: 43
Chesapeake Energy Corporation (NASDAQ:CHK) is an American energy company that is engaged in the exploration of hydrocarbon. The company stands eighth on our list of billionaire David Tepper’s newest stock picks.
Appaloosa Management bought over 3.7 million shares in Chesapeake Energy Corporation in the first quarter of 2021. The hedge fund now owns 525,903 shares in the company as of Q2 2021, valued at $27.3 million. The company currently represents 0.56% of the hedge fund’s 13F portfolio. In the second quarter, Chesapeake Energy Corporation posted an EPS of $1.64, beating the estimates by $0.46. In October, UBS initiated its coverage on Chesapeake Energy Corporation with a ‘Buy’ rating and an $88 price target. The company pays an annual dividend of $1.38 per share, yielding 2.22%.
As of Q2 2021, 43 hedge funds tracked by Insider Monkey have positions in Chesapeake Energy Corporation, up from 42 in the previous quarter. The total value of these stakes is roughly $2 billion. Oaktree Capital Management is the company’s leading shareholder, with 11.9 million shares.
7. ViacomCBS Inc. (NASDAQ:VIAC)
Appaloosa Management LP’s Stake Value: $66,670,000
Percent of Appaloosa Management LP’s 13F Portfolio: 1.37%
Number of Hedge Fund Holders: 71
ViacomCBS Inc. (NASDAQ:VIAC) is a multinational mass media company and ranks seventh on our list of billionaire David Tepper’s newest stock picks.
Appaloosa Management started building its position in ViacomCBS Inc. in Q1 2021 with over 3.4 million shares. In Q2 2021, the hedge fund owns 1.47 million shares in the company, slashing its stake by 58%. The total value of these shares is $66.6 million and the company currently represents 1.37% of the hedge fund’s 13F portfolio. In August, Wells Fargo upgraded ViacomCBS Inc. to ‘Overweight’ with a $60 price target, highlighting the company’s streaming services.
As of Q2 2021, 71 hedge funds tracked by Insider Monkey have positions in ViacomCBS Inc., down from 89 in the previous quarter. The total value of these stakes is $1.87 billion.
6. The Mosaic Company (NYSE:MOS)
Appaloosa Management LP’s Stake Value: $78,619,000
Percent of Appaloosa Management LP’s 13F Portfolio: 1.62%
Number of Hedge Fund Holders: 43
The Mosaic Company (NYSE:MOS) is an American fertilizer company that mainly produces the most important nutrients in agriculture, such as concentrated phosphate and potash. The company ranks sixth on our list of billionaire David Tepper’s newest stock picks.
Appaloosa Management bought over 1 million shares in The Mosaic Company in the first quarter of 2021. As of Q2, the hedge fund has increased its position in the company by 130%, holding over 2.5 million shares, worth $78.6 million. The Mosaic Company currently accounts for 1.62% of the hedge fund’s 13F portfolio. The company’s second-quarter EPS stood at $1.17, beating the analysts’ consensus by $0.18. In October, RBC Capital lifted its price target on The Mosaic Company to $55, with an ‘Outperform’ rating on the shares.
As of Q2 2021, 43 hedge funds as tracked by Insider Monkey have positions in The Mosaic Company, up from 38 in the previous quarter. The total value of these stakes is roughly $809 million.
Appleseed Fund mentioned The Mosaic Company in its Q1 2021 investor letter. Here is what the firm has to say:
“Our most significant contributors to the Fund’s equity performance during the quarter (includes) Mosaic Company (MOS). As for Mosaic, its share price has risen in sympathy with increasing grain prices, which should stimulate additional farmer investment into improving crop yields.”
5. Paysafe Limited (NYSE:PSFE)
Appaloosa Management LP’s Stake Value: $102,935,000
Percent of Appaloosa Management LP’s 13F Portfolio: 2.13%
Number of Hedge Fund Holders: 50
Paysafe Limited (NYSE:PSFE) ranks fifth on our list of billionaire David Tepper’s newest stock picks. It is a British online payments company that offers payment solutions to its consumers in over 40 countries.
Appaloosa Management bought 10 million shares in Paysafe Limited in Q1 2021. As of Q2 2021, the hedge fund owns 8.5 million shares in the company, valued at $102.9 million. The company represents 2.13% of the fund’s 13F portfolio. In August, BofA initiated its coverage on Paysafe Limited with a ‘Buy’ rating and a $15 price target due to the company’s strong position in the rapidly growing iGaming market in the U.S. In Q2 2021, Paysafe Limited reported revenue of $384.3 million, showcasing a 12.7% year-over-year growth.
As of Q2 2021, 50 hedge funds tracked by Insider Monkey have positions in Paysafe Limited, up from 41 in the previous quarter. The total value of these stakes is $1.12 billion.
4. D.R. Horton, Inc. (NYSE:DHI)
Appaloosa Management LP’s Stake Value: $103,407,000
Percent of Appaloosa Management LP’s 13F Portfolio: 2.14%
Number of Hedge Fund Holders: 45
D.R. Horton, Inc. (NYSE:DHI) is an American home construction company that mainly deals in the construction and sale of single-family housing. The company ranks fourth on our list of billionaire David Tepper’s newest stock picks.
Appaloosa Management bought stakes in D.R. Horton, Inc. in Q1 2021, reducing its position in the company by 2% in the second quarter of 2021. Currently, the hedge fund holds over 1.14 million shares in the company, worth $103.4 million. D.R. Horton, Inc. represents 2.14% of the hedge fund’s 13F portfolio.
Of the 873 hedge funds tracked by Insider Monkey, 45 hedge funds have positions in D.R. Horton, Inc., compared with 50 in the previous quarter. The total worth of these stakes is over $1.88 billion.
3. The Beachbody Company, Inc. (NYSE:BODY)
Appaloosa Management LP’s Stake Value: $20,800,000
Percent of Appaloosa Management LP’s 13F Portfolio: 0.43%
Number of Hedge Fund Holders: 13
The Beachbody Company, Inc. (NYSE:BODY) is an American fitness and media company that also specializes in community-based in-home fitness. The company stands third on our list of billionaire David Tepper’s newest stock picks.
In Q2 2021, Appaloosa Management bought 2 million shares in The Beachbody Company, Inc., valued at $20.8 million. The company currently accounts for 0.43% of the hedge fund’s 13F portfolio. In Q2 2021, The Beachbody Company, Inc. reported revenue of $223.1 million, up 2.2% from the prior-year quarter. This July, Guggenheim initiated its coverage of The Beachbody Company, Inc. with a ‘Buy’ rating and a $15 price target.
As of Q2 2021, 13 hedge funds tracked by Insider Monkey have positions in The Beachbody Company, Inc., worth $72.4 million. The company did not have any hedge fund positions in the previous quarter.
2. PulteGroup, Inc. (NYSE:PHM)
Appaloosa Management LP’s Stake Value: $82,356,000
Percent of Appaloosa Management LP’s 13F Portfolio: 1.7%
Number of Hedge Fund Holders: 34
PulteGroup, Inc. (NYSE:PHM) is an American home construction company that operates in 44 markets and in 23 states. The company stands second on our list of billionaire David Tepper’s newest stock picks.
In Q2 2021, Appaloosa Management started building its position in PulteGroup, Inc. with 1.5 million shares, valued at over $82.3 million. The company represents 1.7% of the hedge fund’s 13F portfolio. In July, BTIG lifted its price target on PulteGroup, Inc. to $77, while keeping a ‘Buy’ rating on the shares. The company pays an annual dividend of $0.56 per share, yielding 1.17%. Since the beginning of the year, PulteGroup, Inc. delivered a 13.4% return to shareholders.
As of Q2 2021, 34 hedge funds tracked by Insider Monkey have positions in PulteGroup, Inc., compared with 42 in the previous quarter. The total value of these stakes is $948.5 million.
1. Uber Technologies, Inc. (NYSE:UBER)
Appaloosa Management LP’s Stake Value: $101,994,000
Percent of Appaloosa Management LP’s 13F Portfolio: 2.11%
Number of Hedge Fund Holders: 135
Uber Technologies, Inc. (NYSE:UBER) tops our list of billionaire David Tepper’s newest stock picks. It is an American technology company that specializes in ride-hailing as well as offers delivery services to its consumers.
Appaloosa Management started building its position in Uber Technologies, Inc. in Q2 2021, with over 2 million shares, worth $101.9 million. The company currently represents 2.11% of the hedge fund’s 13F portfolio. In September, JPMorgan lifted its price target on Uber Technologies, Inc. to $72, while keeping an ‘Overweight’ rating on the shares. The firm’s analyst believes that the company will benefit as driver supply trends are improving. In Q2 2021, Uber Technologies, Inc. posted a GAAP EPS of $0.58, beating the estimates by $1.11. In the past year, the stock returned 31.3% to shareholders.
As of Q2 2021, 135 hedge funds tracked by Insider Monkey have positions in Uber Technologies, Inc., up from 130 in the previous quarter. These stakes are valued at $10.4 billion.
ClearBridge Investments mentioned Uber Technologies, Inc. in its Q2 2021 investor letter. Here is what the firm has to say:
“The pandemic has also brought attention to the question of gig worker employment status for companies, including ClearBridge holdings Uber and Lyft. In the U.K., Uber proactively classified its drivers as “workers” ahead of final rulings from the British court system. The worker status in the U.K. is a designation between self-employed and employed status that entitles drivers to minimum wage, holiday pay and in some cases a pension.
ClearBridge has engaged with Uber on labor issues since its IPO, and we have given feedback over that time to the CEO, CFO, Chief Legal Officer and Investor Relations on labor relations as well as strategy and communications. Uber’s agreement on this designation is ahead of other competitors in the market and the legal mandate represents a step forward in the company’s thinking about labor. The agreement represents a short-term hit to earnings, yet in some ways it places Uber ahead of the market in its ability to balance labor and shareholder interests. Workers benefit from improved conditions, with new contributions amounting to roughly 3% of a driver’s earnings, while Uber establishes more certainty on costs and visibility into its regulatory environment and operation conditions in the future.”
You can also take a look at Joel Greenblatt’s Portfolio and Recent Buys and Warren Buffett’s Top 10 Stock Picks
Follow Insider Monkey on Twitter
Suggested articles:
- Billionaire David Tepper’s Top 10 Stocks
- Billionaire David Siegel’s Top 10 Stock Picks
- Bill Gates’ Most Recent Investments
This article is originally published at Insider Monkey.
