Billionaire David Tepper’s Top 5 Stock Holdings

2. Alibaba Group Holding (NYSE: BABA)

The Chinese e-commerce giant Alibaba Group Holding (NYSE: BABA) is the second-largest stock holding of Appaloosa Management. The hedge fund has initiated a position in BABA in 2017 and it accounted for 11.54% of the portfolio. Shares of Alibaba soared almost 22% in the last twelve months.

Aikya Investment Management, which returned 21% for the fourth quarter, highlighted the confidence in the growth prospects of Alibaba in an investor’s letter. Here is what Aikya Investment Management stated:

“Our long-term predictions suggest Alibaba can generate $60 billion of free cashflow in 2030. Working in the assumption that Alibaba will be a much more mature business in 2030, we would expect our investment to at least generate a 5% free cash flow yield. This implies Alibaba should be worth $1.2 trillion in 2030, and if we then factor in appropriate adjustments to the share count for share-based compensation then we would expect to earn a 3% return in dollars from today’s share price.”