In this piece, we will take a look at the latest news about David Tepper and the changes in his investment portfolio. If you want to skip the news and our introduction to the billionaire investor, then take a look at David Tepper Latest News and Portfolio Changes: Top 5 Stocks.
David Tepper is not only one of the richest hedge fund bosses in the world but also one of the richest people. His latest net worth estimate sits at a cool $20 billion according to Forbes Magazine, ensuring that he has enough money to last several lifetimes.
Mr. Tepper's fortunes are the result of his hedge fund Appaloosa Management, which is headquartered in Miami Beach, Florida, and was set up in 1993. According to Insider Monkey's research, which calculated the sum of the hedge fund's investment stakes as of June 2023 shows that it had invested $5.3 billion across 36 stocks and warrants. This marked a sizeable growth over Appaloosa Management's investment portfolio during 2023's first quarter, as by the end of Q1 2023, the firm had total investments of $1.8 billion.
Naturally, a near tripling of a hedge fund's investment portfolio merits a closer look under the hood, which becomes even more important when we consider the current U.S. stock market climate. 2023 has been a surprising year when it comes to market and economic performance, and even new records set by some indices such as the NASDAQ which would normally be a positive occurrence have done little to quell fears about the future. This is because even though the market has posted significant gains this year, these have mostly been influenced by the price appreciation of big tech stocks and the future of the Federal Reserve's current interest rate hiking cycle is unclear. Investors are currently preparing their bets about when rates will start to come down, but they have little robust economic data to suggest that the rates might come down soon as the labor market and inflation continue to post surprises and geopolitical conflict in the Middle East carries the risk of further stoking inflation due to oil price rising
When it comes to investment strategy, Mr. Tepper's hedge fund invests in both debt and equity markets. It has the tendency to concentrate its investments into a handful of companies through taking multi million dollar investment positions, as should be evident through the June 2023 portfolio. The firm is also a fan of mega cap technology firms, as its three largest positions are in NVIDIA Corporation (NASDAQ:NVDA), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META). These are worth $431 million for NVIDIA, $431 for Meta, and $422 million for Microsoft - to account for more than one fifth of the portfolio.
These days, David Tepper is in the news not because of his hedge fund, but because of his sports team. One of the biggest symbols of wealth and prestige in America is owning a sports team, and Mr. Tepper is one of the few hedge fund investors with one. In fact, he owns not one but two teams, after having bought the football team Carolina Panthers in 2018 after selling his shares in the Pittsburgh Steelers and bidding a whopping $2.2 billion. Not content with an American Football team, the billionaire expanded his sports portfolio to include soccer as well and he bought Charlotte FC a year later in 2019.
For Mr. Tepper, his football team's under performance has pushed his involvement into the spotlight. The Panthers' head coach Frank Reich outlined in a press conference recently that Mr. Tepper is an engaged owner who wants to see the team win which is in contrast to other owners who are often more laid back. This strong approach by the billionaire hedge fund boss has also seen criticism from the Panthers' fans and analysts, who have criticized Mr. Tepper by pointing out that his notable achievements in the financial world might not be transferable to football. The criticism is also involved around the team's quarterback, with some quarters claiming that Mr. Tepper had influenced his selection and the debate is further complicated by Young's underperformance in recent games.
Shifting gears to focus on financial news related to David Tepper, he recently spoke with CNBC and shared that the higher interest rate environment simply means that the market multiples of the past do not apply anymore.
It's not that complicated right now. You're just not in QE times anymore. You're in the QT era. It's a higher rate environment. Can't be the same multiples as before, it's not bad, it's just different. It's just a different environment.
CNBC's Michael Santoli also revealed that Mr. Tepper actually invested in cash recently, as he secured a Certificate of Deposit with a 6% rate to profit from the high interest rates. This latest David Tepper investment can also be read as a signal to be bullish on the U.S. Dollar, which always gains whenever investors believe that the Federal Reserve could hike interest rates even further or cut them later than expected.
So, what are David Tepper's latest portfolio changes? We took a look and his top three latest investments are Intel Corporation (NASDAQ:INTC), QUALCOMM Incorporated (NASDAQ:QCOM), and Advanced Micro Devices, Inc. (NASDAQ:AMD).
David Tepper Latest News and Portfolio Changes
Our Methodology
To compile our list of David Tepper's latest portfolio changes, we scanned his hedge fund's SEC filings and picked out companies that were the latest additions to the investment portfolio.
Appaloosa Management's Latest Investment: $77 million
Lam Research Corporation (NASDAQ:LRCX) is a semiconductor manufacturing equipment provider that sells the machines to chip making companies. The firm's investors were in for some good news in October as Needham upgraded the stock to Buy from Hold and pointed out a sizeable market for its products.
As of June 2023, 69 among the 910 hedge funds polled by Insider Monkey had invested in the firm. Lam Research Corporation (NASDAQ:LRCX)'s biggest investor in our database is Ken Fisher's Fisher Asset Management courtesy of its $1.8 billion investment.
Lam Research Corporation (NASDAQ:LRCX) joins QUALCOMM Incorporated (NASDAQ:QCOM), Intel Corporation (NASDAQ:INTC), and Advanced Micro Devices, Inc. (NASDAQ:AMD) in our list of David Tepper's latest stock picks.
Appaloosa Management's Latest Investment: $88 million
Micron Technology, Inc. (NASDAQ:MU) is an American chip company that sells memory products for consumer and enterprise use. It expanded its data center portfolio in October by introducing high performance memory modules. Appaloosa Management bought 1.4 million Micron Technology, Inc. (NASDAQ:MU) shares that were worth $40 million as of Q2 2023 end.
During the same time period, 86 out of the 910 hedge funds part of Insider Monkey's database were also the firm's investors. Micron Technology, Inc. (NASDAQ:MU)'s largest hedge fund shareholder is Ken Griffin's Citadel Investment Group as it owns 6.7 million shares that are worth $424 million.
Appaloosa Management's Latest Investment: $93 million
Apple Inc. (NASDAQ:AAPL) is the biggest technology company in the world both in terms of its revenue and market value. It recently launched the iPhone 15 smartphone lineup, and some analysts fear that sales might drop in China which has led to the shares coming under pressure.
By the end of this year's second quarter, 135 out of the 910 hedge funds surveyed by Insider Monkey had invested in Apple Inc. (NASDAQ:AAPL). Warren Buffett's Berkshire Hathaway is the biggest investor in our database due to its massive $177 billion investment.
Appaloosa Management's Latest Investment: $104 million
Broadcom Inc. (NASDAQ:AVGO) is another important chip company that is known primarily for its modems that are used in consumer gadgets as well as large data centers. The firm is believed to be one of the biggest beneficiaries of the ongoing AI revolution due to its data center products. However, there is some speculation that recent restrictions on China by the U.S. government might create hurdles for Broadcom Inc. (NASDAQ:AVGO)'s bid to acquire VMware.
For their June quarter of 2023 shareholdings, 72 out of the 910 hedge funds tracked by Insider Monkey had held a stake in the company. Broadcom Inc. (NASDAQ:AVGO)'s largest shareholder is Ken Fisher's Fisher Asset Management as it owns 1.9 million shares that are worth $1.6 billion.
Appaloosa Management's Latest Investment: $104.6 million
Marvell Technology, Inc. (NASDAQ:MRVL) is the third semiconductor firm on our list and the first that caters exclusively to the data center market. It's also the first whose shares are rated Strong Buy on average, and analysts believe there is a $17 share price upside through an average share price target of $69.85.
59 among the 910 hedge funds part of Insider Monkey's Q2 2023 database had held a stake in Marvell Technology, Inc. (NASDAQ:MRVL). David Goel and Paul Ferri's Matrix Capital Management is the biggest hedge fund investor through a $510 million stake.
Intel Corporation (NASDAQ:INTC), Marvell Technology, Inc. (NASDAQ:MRVL), QUALCOMM Incorporated (NASDAQ:QCOM), and Advanced Micro Devices, Inc. (NASDAQ:AMD) are some latest additions to David Tepper's portfolio.
