Is This Why David Tepper Is "Very Nervous"

Tyler Durden's picture

Below is the full breakdown of the just released 13-F of David Tepper's Appaloosa.

First, the highlights: it seems that the suddenly weary billionaire investor had no such skeptical reservations in Q1, when he increased the long-only equity portion of his book from $8 billion among 70 positions to $9.1 billion but among a more concentrated 58 positions. Among his most notable liquidations (sorted by size): Fluor, Hartford, EMC, Transocean and Foster Wheeler. Tepper also took new modest stakes in Priceline ($218MM), Expedia ($50MM), and Facebook ($29MM).

The full list of other positional increase and decreases can be seen on the chart below but two particular stake bear noting: as of March 31, Tepper's largest position is no longer just the SPY, or S&P500 ETF, which amounted to $2.1 billion in value as of December 31 followed by $765 million in the Nasdaq ETF, the QQQs, but rather calls on the S&P500, which at March 31, 2014 represented a notional equivalent of a whopping $1.1 billion, or 6 million shares! And perhaps even more notable: Tepper's 6th largest position at the end of Q1, after the SPY Call, a cash position in SPY in second place, followed by $815 million in QQQs, and $492 million in Google and $480 million in Citi, is a new position in Nasdaq (QQQ) calls, amounting to a just as whopping $438 million share notional.

To be sure, we don't know if Tepper still has any of these two massive call position on his books right now, nor do we know how much capital at risk they involve, but judging by the performance of the Nasdaq alone, the QQQ calls are hardly doing all that great.

So being very bullishly levered in 2 of your top 6 positions into a suddenly swooning market, that would make everyone, not just Tepper, nervous. Unless of course he sold his calls before the SALT conference and is already comfortably hedged with a billion or so in SPY and QQQ puts...

Source: 13F

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Martial's picture

I feel so honored to hear fom the .000000001%er himself.

Divided States of America's picture

this fucker probably loaded up on puts yesterday....

buyingsterling's picture

How is it that we know when this fellow takes a dump, but we don't know fuck all about what's in Goldman's Sack? 

Translational Lift's picture

Talking his book!!??  Eh......

HedgeAccordingly's picture

THE SHNOZ berries taste like SHNOZ berries

J S Bach's picture

Shnozberries?  Whoever heard of a shnozberry?!


We are the music makers and Tepper is the dreamer of the dreams.

new game's picture

greed will get this fucker-always does, think paulson shorting mbs's.

I Write Code's picture

Need to know the strike price on the calls to know what they mean, if he bought them low and the market went up - good for him.

Sudden Debt's picture

before we go down, I expect a full truster and that's when you start shorting. not yet... save your ammo....

Headbanger's picture

Believe me I am!


Oh... that...

Rainman's picture

It's the buy and hold commoner sheep who really, really need to be ' very nervous '

Relentless101's picture

He's hedged. He wouldn't have spooked the sheep if he didn't believe he was clear. 

ebworthen's picture

Yup.  Time to hear something from Icahn or Ackman or Yellen.

LawsofPhysics's picture

Personally, I think ever single paper-pusher who has gloated over their own "success" should be pretty damn "nervous".

Tick tock motherfuckers...

Yen Cross's picture

      I wonder if Tepper has a red Batphone linked directly to the N.Y.Fed.?

new game's picture

nada node (if he has paid all his dues)...

fucker dines with the fed-hello...

Sudden Debt's picture

anybody watching the europarlement debate?!?!?!?!?

Sudden Debt's picture

yes, it was about the "pro's" about bailins "to protect" the people who are poor and retired.
and than there was applauze.....


rlouis's picture

I don't think Orwell could have imagined that!  Maybe someone should write a 1984 Revisited.

NotApplicable's picture

Not even if you put a gun to my head.

kurt's picture

You are either a blood tick or a fly. Blood ticks bury their heads in and clamp on. Flys get shook off or swatted. If you are in the Fed, you are a tapeworm locked into a frothy stream of juicy bits. If you own Rent-a-Center or a Payday Loan center you are a dung beetle, rolling your egg infested shitball.

An you without a spoon.

atomp's picture

Spider's and Q's!?! Fucking pussy.

Al Huxley's picture

You think he'd say he was nervous BEFORE he'd dumped his long positions and gone short?

RadioactiveRant's picture

Just wanted some background to this guy and fell of my chair when I read this:

"Tepper was raised in a Jewish family..."

Why always, always, this?

disabledvet's picture

Enough about let's talk about me.

The HighRollers are in the debt markets not spectacular a run as equities have had along with IPO action, stock buy backs, SOME pricing power, M&A, and unfortunately still de minimus growth.

The Debt Brotherhood on the other hand are buying up Planet Peon lock stock and two smoking barrels....and have been going on five years now.

AccreditedEYE's picture

Sadly, THIS is what passes for 2 & 20 management. Massively leveraged beta. What a f-ing clown. Balls n all.

NuYawkFrankie's picture

Is that an inverted Yellowstone caldera above his eyebrows?

A head that could explode any moment might be enough to make anyone "very nervous".

razorthin's picture

What an asshole.

migra's picture

This asshole is a market maker. Like it or not, POS like Teabag  tepper, run shit.

Godisanhftbot's picture

 Tepper Taper Topper?

slightlyskeptical's picture

Looks like he just replaced much of his SPY and QQQ exposure with calls. Losses probably top out at 2-3% instead of taking the full brunt of SPY and QQQ selloffs.

Risk management is all this is. He is walking his talk in other words. Scary most here are too blind to see it.