Billionaire David Tepper’s Biggest Q2 Moves Involve Western Digital, Facebook & Others

David Tepper Buys New Stake in Western Digital Corp (NASDAQ:WDC)

– Shares Owned by Appaloosa Management LP (as of June 30): 1.45 Million

– Value of Appaloosa Management LP’s Holding (as of June 30): $68.53 Million

David Tepper’s investment firm acquired a new stake of 1.45 million shares of Western Digital Corp (NASDAQ:WDC) during the three months that ended June 30, valued at $68.53 million at the end of the period. The new position accounted for 1.8% of the asset manager’s overall portfolio. Earlier this year, the manufacturer of data storage solutions completed the acquisition of flash memory technology maker SanDisk Corporation, with the multi-billion-dollar cash-and-stock deal considered as being crucial to Western Digital. The acquirer’s core business involved selling platter-based hard disk drives, a market pressured by tough competition from makers of solid-state drives (SSDs). As a result, the acquisition increased the acquirer’s market share in the SSD market to around 14%, making Western Digital the second-largest player in the industry after Samsung. Under the terms of the merger that was completed on May 12, SanDisk shareholders received $67.50 per share in cash and 0.2387 shares of Western Digital. WDC shares are 26% in the red year-to-date. John Brennan’s Sirios Capital Management has 1.27 million shares of Western Digital Corp (NASDAQ:WDC) in its portfolio as of the end of the second quarter.

Appaloosa Management Cut Stake in HCA Holdings Inc. (NYSE:HCA)

– Shares Owned by Appaloosa Management LP (as of June 30): 1.22 Million

– Value of Appaloosa Management LP’s Holding (as of June 30): $93.72 Million

The hedge fund based in Miami Beach reduced its exposure to HCA Holdings Inc. (NYSE:HCA) by 1.96 million shares during the April-to-June period, finishing the second quarter with 1.22 million shares valued at $93.72 million. The trimmed stake made up for 2.5% of the hedge fund’s entire portfolio. The private hospital operator should benefit from the possible election of Hillary Clinton as the next president of the United States, as she has promised to protect and expand the so-called Obamacare, or the Affordable Care Act (ACA). HCA Holdings has benefited from the expansion of health insurance under Obamacare, which resulted in increased patient admissions and reductions in unpaid bills. The largest hospital operator in the U.S. reported revenues of $10.32 billion for the second quarter, up 4.3% year-over-year. The company’s same facility admissions for the second quarter grew 0.6% year-on-year. HCA shares are 13% in the green thus far in 2016. Anthony Bozza’s Lakewood Capital Management was the owner of 2.16 million shares of HCA Holdings Inc. (NYSE:HCA) at the end of June.

Billionaire David Tepper Boosts Allergan plc (NYSE:AGN) Stake

– Shares Owned by Appaloosa Management LP (as of June 30): 1.26 Million

– Value of Appaloosa Management LP’s Holding (as of June 30): $291.36 Million

Appaloosa Management LP added 981,700 shares of Allergan plc (NYSE:AGN) to its existing position in the company during the second quarter of 2016, ending the three-month period with 1.26 million shares. The upped position was worth $291.36 million on June 30 and made up 7.7% of the hedge fund’s portfolio. The Allergan stake was the fourth-largest position in Appaloosa Management’s set of holdings at the end of June. Allergan, previously known as Actavis until the company bought Botox maker Allergan, has seen its market cap decline by 20% since the start of the year. Although fresh media reports suggested Allergan was interested in acquiring biotechnology giant Biogen Inc. (NASDAQ:BIIB), the company’s CEO dismissed rumors of a possible bid to acquire Biogen during a freshly-held conference call, saying that the company does not need a “transformational” deal to fuel growth. Just recently, Allergan agreed to acquire ForSight VISION5, a privately-held biotechnology company focused on eye care. Dan Loeb’s Third Point LLC owns 4.90 million shares of Allergan plc (NYSE:AGN) as of June 30.

Disclosure: None