In this article, we discuss billionaire David Tepper’s 5 newest stock picks. If you want to read our detailed analysis of David Tepper’s investment strategy, go directly and see Billionaire David Tepper’s 10 Newest Stock Picks.
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 (NYSE:PSFE) 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 (NYSE:PSFE) 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 (NYSE:PSFE) 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 (NYSE:PSFE), 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. (NYSE:DHI) 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. (NYSE:DHI) 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. (NYSE:DHI), 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. (NYSE:BODY), 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. (NYSE:BODY) 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. (NYSE:BODY) 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. (NYSE:BODY), 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. (NYSE:PHM) 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. (NYSE:PHM) 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. (NYSE:PHM) delivered a 13.4% return to shareholders.
As of Q2 2021, 34 hedge funds tracked by Insider Monkey have positions in PulteGroup, Inc. (NYSE:PHM), 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. (NYSE:UBER) 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. (NYSE:UBER) 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. (NYSE:UBER) 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. (NYSE:UBER), up from 130 in the previous quarter. These stakes are valued at $10.4 billion.
ClearBridge Investments mentioned Uber Technologies, Inc. (NYSE:UBER) 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
