David Tepper's Appaloosa Management Q1 Portfolio Positioning: More Caesers Entertainment, Alibaba, Amazon, Microsoft; Less Semiconductor Stocks

Author: Surbhi Jain | February 15, 2024 04:14pm

David Tepper’s Appaloosa Management navigated dynamic market conditions in the fourth quarter of 2023. Strategic moves by the hedge fund included entering new positions, boosting select tech holdings, reducing exposure to semiconductor stocks and making key exits.

Tepper’s decisions provide a glimpse into his outlook and positioning for the first quarter of 2024, given diverse market trends.

New Positions: Oracle, ARK Innovation ETF

Appaloosa Management initiated substantial new positions, with the standout entries being in Oracle Corp. (NYSE:ORCL) and the ARK Innovation ETF (NYSE:ARKK). The fund purchased 1.3 million shares of Oracle, valued at approximately $140 million, and secured a call option for nearly 2.6 million shares in the ARK Innovation ETF worth more than $133 million. Other notable entries included FMC Corp. (NYSE:FMC) and General Motors Co. (NYSE:GM).

Tech Sector Adjustments & Expansion in Home Improvement, Construction

Tepper’s fund reduced its exposure to semiconductor stocks such as Advanced Micro Devices, Inc. (NASDAQ:AMD), Intel Corp (NASDAQ:INTC), Qualcomm Inc (NASDAQ:QCOM), and Taiwan Semiconductor Manufacturing Co. (NYSE:TSM).

At the same time, it boosted positions in other tech giants, Amazon.com Inc (NASDAQ:AMZN) and Alibaba Group Holding Ltd. (NYSE:BABA). The fourth quarter filing showcased a calculated shift in the tech sector holdings, aligning with evolving market dynamics.

Appaloosa Management also diversified its portfolio by entering positions in the home improvement, construction, and building materials sectors. Notable additions included Masco Corp. (NYSE:MAS), Mohawk Industries Inc. (NYSE:MHK), and Owens Corning (NYSE:OC), signaling the fund’s strategic interest in these industries.

Caesars Entertainment Stake Increase And Other Select Boosts and Exits

Appaloosa Management increased its positions in Caesars Entertainment Inc. (NASDAQ:CZR) by adding 725,000 new shares to its portfolio. The move emphasizes Tepper’s confidence in the gaming industry, where Caesars holds a prominent position, particularly in the mobile wagering arena.

Appaloosa Management also added midstream oil company MPLX LP (NYSE:MPLX) and tech stalwarts, including Alibaba, Amazon and Microsoft Corp (NASDAQ:MSFT).

Notably, Appaloosa Management exited positions entirely in Arista Networks Inc (NYSE:ANET) and Enterprise Products Partners (NYSE:EPD).

Also Read: The Elite Billionaires of Sports Ownership: Meet The Top 10 Richest Team Owners

Appaloosa Management’s fourth-quarter portfolio changes reflect a nuanced approach to navigating market shifts. The fund’s entry into new sectors, adjustments in the tech landscape, and strategic exits demonstrate Tepper’s proactive stance. As the market continues to evolve, investors will closely watch Appaloosa’s moves for insights into Tepper’s outlook and tactical positioning.

Read Next: If You Invested $1,000 In This AI Stock When David Tepper’s Appaloosa First Entered, You’d Have Over 3X Your Money Today

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