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Tepper Increases Citi Position By 66 Million Shares, Sees Additions To Virtually All Top 25 Equity Positions

Tyler Durden's picture





 

David Tepper's Appaloosa has released its Q4 holdings. During the quarter the famously bullish investor made some major additions to his portfolio, the most notable of which is the increase in his Citi position from 51.3 million shares to 117.5 million: a 66.2 million increase, which brings the total to $555 million as of December 31. In other words, Appaloosa's bigest position is now the same as that of John Paulson. And that's just the start of Tepper's incursion into financials: the Chatham, NJ fund also increased its holdings in Wells Fargo Perpetual Preferred Convertible stocks from 292,019 to 335,482 shares, bringing the total holding to $336 million, closely followed by the last of the TBTF trinity: Bank of America, which saw an addition of 2.6 million shares to bring the total to 334 million shares. Total equity AUM increased by $1.5 billion between Q3 and Q4 as much cash was deployed to purchase mostly financial stocks. Other notable additions were Hewlett Packard, Wells Fargo common, Microsoft, and pretty much all of the top 25 positions. New positions were initiatied in Micron, Dean Foods and United Continental Holdings. In fact the only decline among the top 25 was in Fifth Third Bancorp, which saw an 825,500 share drop in Q4. It seems that the biggest hedge funds are now the holders of pretty much the same stocks: hopefully, just as has been the case over the past 6 months, nobody will ever have to sell, as there is nobody left who is not on the same side of the reflation trade.

 


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Mon, 02/14/2011 - 18:03 | Link to Comment HamyWanger
HamyWanger's picture

And he's right.

Stocks are the buy of the century.

Mon, 02/14/2011 - 19:06 | Link to Comment william the bastard
william the bastard's picture

I would pay 2 and 20 annually for someone to buy C for me!!

 

 

Mon, 02/14/2011 - 18:13 | Link to Comment Gubbmint Cheese
Gubbmint Cheese's picture

that was me - I junked you. Reasons should be obvious.

Mon, 02/14/2011 - 18:36 | Link to Comment william the bastard
william the bastard's picture

"Reasons should be obvious."

For restating the obvious you get a junk!

Mon, 02/14/2011 - 18:52 | Link to Comment whatz that smell
whatz that smell's picture

""Reasons should be obvious."

For restating the obvious you get a junk!"

you get junked for junking the obvious.

 

Mon, 02/14/2011 - 18:59 | Link to Comment william the bastard
william the bastard's picture

I felt like destroying something beautiful

Mon, 02/14/2011 - 19:32 | Link to Comment LowProfile
LowProfile's picture

Junks all around!

Mon, 02/14/2011 - 18:14 | Link to Comment Misean
Misean's picture

Who needs to sell? Baby Bumblers stumbling into retirement are gonna live of the dividend payments, right?

Mon, 02/14/2011 - 18:25 | Link to Comment Archimedes
Archimedes's picture

I am curious who he plans on selling 100 million shares to?

Mon, 02/14/2011 - 20:03 | Link to Comment Mach1513
Mach1513's picture

The Bernank - of course.

Mon, 02/14/2011 - 18:25 | Link to Comment mynhair
mynhair's picture

No APPL addition?  What a douche.

Now, DF, there's a winner.  No margin compression at all for soybean buyers.  Hear Silk will be streamed direct to the frig soon.

Mon, 02/14/2011 - 18:27 | Link to Comment azengrcat
azengrcat's picture

This isn't a bull market; it's a Buzz Lightyear market!

Mon, 02/14/2011 - 18:27 | Link to Comment slaughterer
slaughterer's picture

I hope Tepper loses on every single position he added to.  I hate the smug a-hole Tepper.  

Mon, 02/14/2011 - 18:36 | Link to Comment william the bastard
william the bastard's picture

But he grew up poor in Pittsburg.

Mon, 02/14/2011 - 18:58 | Link to Comment slaughterer
slaughterer's picture

Childhood does not matter.  The question is: what has he become?

Mon, 02/14/2011 - 19:08 | Link to Comment william the bastard
william the bastard's picture

"What has he become?", you ask.

A man takes 2% of your investment and 20% of your profit, annually no less, for buying shares of Citibank for you. He has become, my friend, an accomplished salesman.

Mon, 02/14/2011 - 18:39 | Link to Comment vas deferens
vas deferens's picture

At least Mr. Tepper donates to his local food bank, feeding all the people the banks are robbing.  Please David spare me the chicken wing and stop investing in fraudulent criminal banks and call them out for what they are.  Do some real public service. 

Just another wall street jerk-off.

 

 

 

Mon, 02/14/2011 - 18:48 | Link to Comment RobotTrader
RobotTrader's picture

I do not agree that stocks are a "buy of the century".

However, if you do happen to have long positions, I would not sell until we get a signal or a coming sign of weakness.

Unfortunately, I tried being a top picking hero and sold a lot of stuff back in December, but I still have some high dividend payers I'm hanging on to until I get a decent signal to dump those and move to the short side.

No signal just yet, but the market is getting dangerous here and anything could happen.

Mon, 02/14/2011 - 19:00 | Link to Comment slaughterer
slaughterer's picture

Robo admitting a "dangerous market"?  Huh...  Tilson covering NFLX... Huh... Tepper buying millions more C ... Huh?  TIME TO SHORT!

Mon, 02/14/2011 - 19:09 | Link to Comment raya123
raya123's picture

Exactly, many cycles theories are likewise pointing to a top, not to mention extreme unsustainable overbought conditions which will be torn down by, among other things, the worsening European debt crisis which will come to a head over the next two days as GDP numbers are released.

Mon, 02/14/2011 - 20:35 | Link to Comment Cdad
Cdad's picture

Whether today, tomorrow, or whenever, you should be anticipating a high open, driven by futures and options junkies, wherein the broader market prints a top within minutes of opening.  THAT is the signal.

What a joke of a market.  Hard to believe it has gotten this bad.

Mon, 02/14/2011 - 19:27 | Link to Comment vas deferens
vas deferens's picture

Sign to sell will be a flash crash and the mkt does not pop back up.

Even you are stating your stocks are over priced, buy and hold I guess??

Good luck with your stocks and sign to sell.

 

Tue, 02/15/2011 - 07:58 | Link to Comment ZeroPower
ZeroPower's picture

When the rate hikes come, thatll be a sign. Probs Q3 of this yr first one from the Bernank. Not before.

Mon, 02/14/2011 - 18:50 | Link to Comment Boilermaker
Boilermaker's picture

Gambling billions of other people's money and demanding a cut must be an unreal fucking high.  Must be.

Mon, 02/14/2011 - 19:42 | Link to Comment lolmaster
lolmaster's picture

Tepper may be a clueless prick but he knows one thing well. In a market where everything goes up, he who holds the most leverage holds the most chips.

Mon, 02/14/2011 - 22:30 | Link to Comment sellstop
sellstop's picture

I wonder if Apaloosa chases the market higher, or waits for some selling to come into the market to buy. I bet the latter. They need some volume to buy. The volume comes on the selling days.

There has been buying on the dips. Just because this market has gone up 100% in the last 22 months does not mean the economy is going to crash. It also does not mean that it is a bubble.

There may be corrections. (I hate words like that). There may be selloffs. There may be rallies. But, until there is a large top formed, the trend in the equities markets is up. There are no conspiracies. There is no purposeful manipulation. The stock markets are just going up and have been mostly going up for the last two years.

While it behooves every investor, and trader for that matter, to beware of a possible top in the markets, market tops RARELY are a pointy topped looking thing. Market tops evolve over time. They are most often big rounded affairs. And there are often many "tops".

But, as they say. The markets climb a wall of worry.

gh

 

Mon, 02/14/2011 - 22:58 | Link to Comment IEVI
IEVI's picture

Definition of a Financial Bubble:

A price level that is much higher than warranted by the fundamentals. Bubbles occur when prices continue to rise simply because enough investors believe investments bought at the current price can subsequently be sold at even higher prices. They can occur in virtually any commodity including stocks, real estate, and even tulips.
If you can't see that the stock market is in a bubble as a result of the Fed's printing press..then you are blind.
Tue, 02/15/2011 - 00:04 | Link to Comment sellstop
sellstop's picture

Then gold also must be in a "bubble".

I don't think anyone can call anything a bubble until well after the fact. 

Corporations keep reporting "record" profits. Isn't that one of the drivers of share price?

gh

Tue, 02/15/2011 - 04:09 | Link to Comment IEVI
IEVI's picture

Considering the amount of money that has been created in the past 3 years , do you really believe that the fundamentals for gold don't support the current price.

see

http://www.zerohedge.com/article/m2-grows-40-billion-one-week-hits-fresh...

 

People are buying gold to preserve their wealth and protect it from the actions of the Fed and other central banks, not because they think they can offload it later at a higher price to the next sucker. Whereas the people buying stocks are doing so for that exact reason. It's not the fundamental value of the corporations, it is that they simply believe that the government will keep throwing free money to the banks who will then funnel it into stocks, driving the prices up. They don't realize that even if equities continue to rise in nominal value, their rise will be outpaced by the nominal rise in gold(which=devaluation of the dollar) and their real return will be negative.

 

 

 

 

 

Tue, 02/15/2011 - 00:39 | Link to Comment Trifecta Man
Trifecta Man's picture

David Tepper's Appaloosa has released its Q4 holdings. During the quarter the famously bullish investor made some major additions to his portfolio, the most notable of which is the increase in his Citi position from 51.3 million shares to 117.5 million: a 66.2 million increase, which brings the total to $555 million as of December 31.

Is that a new record for Greater Fools?

Tue, 02/15/2011 - 04:14 | Link to Comment Dan The Man
Dan The Man's picture

as much cash was deployed to purchase mostly financial stocks

 

I think that was the point.  dump cash...buy anything.

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