David Tepper’s Appaloosa hedge fund is one of the most respected and closely watched funds on Wall Street. Tepper makes frequent appearances on CNBC and Bloomberg TV, and often his comments alone will move the markets. In the first half of 2013, the fund returned 16.8%, outperforming the S&P 500. This continued an outstanding record of strong returns for investors. Net annualized returns over the past 20 years are an incredible 28%. The fund was started as a distressed debt fund, but has morphed into a more traditional go anywhere hedge fund. Here is a list of some of the top new stocks added to the Appaloosa portfolio and the positions that were increased.
Nine Cities Running Out of Water
Axiall Corp. (AXLL) is a brand new position for Appaloosa. The company matched revenue expectations and beat on earnings per share when it reported last week. Axiall operates as an integrated chemicals and building products company in North America and Asia. The Thomson/First Call price target for the stock is at $52, and investors are paid a small 0.7% dividend.
Carnival Corp. (CCL) has had a very difficult year, and the addition to the Appaloosa portfolio is a huge uptick for the cruise line. The company provides cruises to various vacation destinations with a fleet of 100 cruise ships under the brand names of Carnival Cruise Lines, Holland America Line, Princess Cruises and Seabourn in North America, as well as AIDA Cruises, Costa, Cunard, Ibero Cruises and P&O Cruises in Europe, Australia and Asia. The consensus price objective for the stock is $36, and shareholders are paid a 2.7% dividend.
Twelve Things Not to Do If You Win the Lottery
Chicago Bridge & Iron Co. N.V. (CBI) was among the top new additions in the hedge fund. This is also a top holding in Warren Buffett's portfolio. The company is an energy infrastructure focused company, providing conceptual design, technology, engineering, procurement, fabrication, construction and commissioning services to customers in the energy, petrochemical and natural resource industries worldwide. The consensus price target is $71.
Hertz Global Holding Ltd. (HTZ) was another new position added to the portfolio. The company is redesigning, updating and unveiling its locations worldwide. The transformed locations are a complete rethinking of what a car rental location and experience should be as the company unveils "Road Trip by Hertz" retail stations located on-site that allow travelers to access everything they would need for business or leisure travel. The consensus price target for the stock is $30.50.