Billionaire David Tepper is Selling These 10 Stocks

In this article, we discuss the 10 stocks Billionaire David Tepper is selling. If you want to skip our detailed analysis of Tepper’s history, investment philosophy, and hedge fund performance, go directly to Billionaire David Tepper is Selling These 5 Stocks.

Legendary investor, philanthropist and co-founder of the public equity investment fund Appaloosa Management, David A. Tepper specializes in distressed debt investments. After earning his B.A in Economics from the University of Pittsburgh in 1978, and his M.B.A from the David A. Tepper School of Business at Carnegie Mellon University in 1982, named after the famed investor following his generous donation of $55 million to the institute in 2003, Tepper began his career in finance, serving as a securities analyst at Equibank and as a financial analyst at Republic Steel later on. In 1982, Tepper was recruited by Keystone Mutual Funds, where he earned much of his experience in financial management. In 1985, he began his career with Goldman Sachs as a credit analyst, advancing on to the high-yield desk as its head trader, primarily focusing on bankruptcies and junk bonds. After being passed over for partnership at Goldman twice, Tepper left the financial services company, and established his own hedge fund in 1993.

According to the most recent 13F filings, Appaloosa Management, as an investment firm, manages more than $4.8 billion in its investment portfolio. The fund’s portfolio is diversified across 10 principal sectors, with the Technology sector being the largest one. A majority of the companies in the fund’s investment portfolio consist of large-cap companies with stocks scaling up to more than $10 billion in market capitalization, making up 45% of the fund’s total value.

Some of the top stocks present in the investment portfolio of Appaloosa Management at the end of the second quarter of 2021 include Amazon.com, Inc. (NASDAQ:AMZN), Facebook, Inc. (NASDAQ:FB), Alphabet Inc. (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT), among others.

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David Tepper of Appaloosa Management

Our Methodology

With this background in mind, let us now look towards the 10 stocks billionaire David Tepper is selling. We made use of Appaloosa Management’s 13F portfolio for the second quarter for this analysis. The following list consists of stocks that the hedge fund sold off completely in the second quarter of 2021.

Why should we pay attention to David Tepper’s stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should…