Appaloosa Management Is Short Financials — And Long Tech: A Look Inside David Tepper's Fund

David Tepper, the owner of the NFL’s Carolina Panthers and hedge fund tycoon, made some notable changes to his Appaloosa Management’s portfolio according to SEC filings issued Monday.

The portfolio, valued in the billions, is a medley of investments across several sectors — from tech and retail to healthcare and energy.

The tech sector continued to dominate Tepper’s investment strategy, with Alphabet Inc. GOOGL, the parent company of Google, leading the pack. Appaloosa holds 2,110,000 shares of the internet giant, with a hefty investment worth $219,440,000.

Tepper’s faith in the e-commerce titan Amazon.com, Inc. AMZN remained unwavering, with the portfolio boasting a $206,580,000 investment for 2,000,000 shares. It appeared that despite some market turbulence, Tepper was betting big on Amazon’s resilience and its potential for growth.

The Chinese multinational conglomerate, Alibaba Group Holding Ltd – ADR BABA, made a prominent appearance in the portfolio. Despite the recent regulatory scrutiny in China, Tepper’s fund holds a substantial 10,218,000 shares, indicating a bullish stance on the company’s long-term prospects.

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Ride-hailing giant Uber Technologies UBER, also received Tepper’s nod of approval. The fund holds 6,000,000 shares of Uber, reflecting an investment value of $190,200,000. That trade could be an indication of Tepper’s confidence in Uber’s ongoing market share growth.

Not one to ignore the energy sector, Appaloosa holds a solid position in Constellation Energy Corp CEG. Though it was one of the company’s biggest sale in shares, the company’s current $164,065,000 investment is 2,090,000 shares, signifying the fund’s continued interest in the energy space.

The portfolio also revealed a substantial investment in Energy Transfer LP Unit ET, with a position of 10,203,430 shares, translating to a $127,236,772 investment. This could be Tepper’s play on the potential recovery and growth in the energy sector.

Interestingly, Appaloosa also holds put options on the Select Sector SPDR Financial ETF XLF, which implied a bearish outlook on the financial sector. That position, valued at $42,335,120 for 1,316,800 shares, showed Tepper’s strategic use of options to hedge risks.

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