On October 15, two weeks after the end of the third quarter, David Tepper appeared on CNBC for his semi-annual stock pumpfest, most memorable for his suggestion that a 20x P/E multiple on the S&P was perfectly acceptable. Which would suggest Tepper was very bullish on risk. Which would suggest buying more stocks, not selling. Yet selling is precisely what he did between June 30 and September 30 according to his just released 13F. Specifically, after having a total long equity AUM of $6.9 billion at the end of the second quarter, the Appaloosian lowered the dollar value of his AUM by nearly 10%, to $6.3 billion as of September 30. So what did he liqudate? Here are his biggest liquidations:
- Comcast ($61 million, 1.5MM shares)
- Microsoft ($48 million, 1.4MM shares)
- Weatherford ($31 million, 2.3MM shraes)
- NetApp ($24 million, 640K shares)
Just as notable is what he sold partially, of which his $665 million cut (4.3 million shares) in the SPY ETF is certainly quite dramatic. Other notable sales.
- Bank of America: sold $51 million, or 4.1MM shares
- Broadcom: sold $55 million, 1.2MM shares
- Hertz: sold $40 million, 1.5MM shares
- Sandisk: sold $39 million, 635K shares
- Carnival: sold $32 million, 876K shares
- Google: sold $18 million, 20k shares
And so on. What did he buy to offset all these sales? His new stakes are as follows:
- Freeport McMoRan: $58 million, 1.75mm shares
- Ingredeon: $20 million, 297k shares
- Community Health: $8.7 million, 210k shares
- Tenet healthcare: $8.7 million, 210k shares
- a flyer for $6.5 million or 737k shares in JCPenney, in which he is nursing a substantial loss so far.
Tepper’s complete latest holdings are shown below, sorted by notional as of Sept 30. New positions in green.