The Top 5 Stocks Billionaire David Tepper Was Buying in Q4

1. Macy’s, Inc. (NYSE:M)

Value of Appaloosa Management‘s 13F Position: $264 million

Number of Hedge Fund Shareholders: 43

Topping the list is another clothing retailer, Macy’s, Inc. (NYSE:M), which David Tepper has owned since the final quarter of 2020. He bought another 3.1 million shares during Q4, building his position to 10.10 million shares and making Macy’s the third-largest holding in his 13F portfolio. Hedge fund ownership of Macy’s has risen by more than 50% since the third quarter of 2020.

Macy’s, Inc. (NYSE:M) had a strong Q4 bolstered by its digital business, which grew sales by 36% compared to the period two years earlier. Digital sales accounted for a record 39% of the company’s total sales in the latest quarter. Macy’s was also a strong free cash flow generator during 2021, topping $2 billion in FCF, which went to reducing the company’s debt and buying back its shares.

ClearBridge Investments’ Small Cap Value Strategy is bullish on the initiatives being undertaken by Macy’s, Inc. (NYSE:M), having this to say about the company in its Q3 2021 investor letter:

“Meanwhile, Macy’s, an omnichannel retail organization that operates stores, websites, and mobile applications under the Macy’s, Bloomingdale’s, and Bluemercury brands, also had a strong quarter (+21.5%). Macy’s delivered strong second-quarter earnings, beating on earnings and revenue and raising guidance as the retailer continues to pay down debt and grow its digital business.”

For more on the latest hedge fund holdings of the biggest hedge fund managers in the world, check out 10 Bank Dividend Stocks to Diversify Your Portfolio and Campbell Wilson’s Old Well Partners Is Buying These 10 Stocks.

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