How The Pros Do It: Tepper Added 75% To Longs After Saying "Now A Good Time To Take Money Off The Table"

Tyler Durden's picture

Tepper did it again.

Recall that exactly one year ago, we wrote about David Tepper's latest TV appearance on BBG TV, when we reported that "David Tepper Dumps 40% Of US Equity Exposure Despite Claiming "Stocks Inexpensive" in which we said the following:

At the start of Q4 2014, Appaloosa's David Tepper made a series of statements - dismissing Bill Gross as irrelevant (nope - turmoil caused by PIMCO unwinds roiled credit markets), calling the end of the bond bull market (nope - yields went on make lower and lower lows), and finally proclaiming that stocks were inexpensive and multiples not high. So, one wonders, if stocks were inexpensive and multiples not high, why did Appaloosa dump 40% of its US equity exposure in that quarter (only to end the quarter with even more exuberance proclaiming that stocks could rise another 10% in 2015)? It appears that when David Tepper says "buy", he means "buy... from me."

Fast forward several months when just after the August market crash which sent the S&P to its first date with 1,812, Tepper was again on CNBC and made a series of bearish prognostication:

"I have problems with earnings growth [and] problems with multiples," he said. "So I can't really call myself a bull [near-term]."

 

Acknowledging he was not as definitive as usual, he said he's "not loving it," but if stocks were to fall 20 percent or so he'd be a buyer. He added that he still believes the market will go higher in the long term.

He added that "it might be a good time to take money off the table."

That's what he said. What did he do?

According to his latest 13F as the market was surging in the last quarter of 2015, Tepper was busy buying. So busy in fact, that he took his total long notional exposure as disclosed in Appaloosa's 13-F from a modest $2.9BN as of September, to $5 billion as of the end of the year, an increase of 75%, in the process adding 40% to his longs.  Needless to say, stocks were not "dropping 20%", in fact quite the opposite - they were surging into the year end Santa Rally.

 

To be sure, we don't know what Tepper was doing with the short side of his book, as well as his credit/CDS exposure, but one thing is clear: when it comes to his longs, as Tepper was urging CNBC's viewers to take money of the table, he was waving much of it in.

As a reminder, this is a man whose one bullish (or bearish) word on financial TV could "dramatically alter market sentiment."

And that's why David Tepper is a billionaire.

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pedro314's picture

is he a member of the tribe...

KnuckleDragger-X's picture

Sheep herding for fun and profit.......

quintago's picture

Is he a member of the tribe?

....if you have to ask, you already know the answer

SloMoe's picture

"Did he work at Goldman?"

He has the hair for it...

RaceToTheBottom's picture

So basically, he lied?

And this is news?

He opened his mouth and words came out.

Of course they were lies.....

It is what they do.

NoDebt's picture

That fucker was buying the dips?  Bastard!  I thought I was the only one who knew how to do that.  I heard about it on a YouTube video couple years back and it sounded like a good idea so I've been doing it ever since.

https://www.youtube.com/watch?v=0akBdQa55b4

spastic_colon's picture

Yellen - "hello David?  FYI we are taking actions that should provide significant equity positive over next few months"

David - "Got it thanks"

David on CNBS - "Now is a good time to take money off the table"  (and give it to me)

 

Firepower's picture

hey! dont u know u cant say "tribe" when asking if a member of the Tribe is a member?

Free Speech in Murka 2016

durrr... here we go WITH THE Silly Conservative Questions http://wp.me/p2kmGE-4cz

MillionDollarBonus_'s picture

It's especially easy for advanced traders to fade their competitors when there are so many zerohedge simpletons in this market with no skill and no clue about how the game works. It's quite amusing to watch ZHers lose repeatedly while the masters win time and time again.

__Usury__'s picture

shylox always win

Consuelo's picture

For a season, yes.   Then the seasons change.

AuEagleNest's picture

You know the majority of the people in this country are hard working debt slaves that are just trying to live their life, do their jobs, raise their children and contribute something to society, while looking for a way to preserve their savings and retirement funds. So it's a sad day when cunts like you applaud the manipulative, bottom-feeding thieves who's only goal is to figure out a way to fill their pockets and contribute nothing good to society or to the world. You should be ashamed. If you want to do a good deed, go buy a nail gun and use it to part your hair.

FGH's picture

I think he is a member of Dennis Gartman's tribe.

RockRiver's picture

It's not lying.....It's just misdirection.....

iggenFlot's picture
iggenFlot (not verified) pedro314 Feb 17, 2016 1:00 PM

You hate him because he's wealthy and you're feeding the family on $40k/year, I get it.

But just remember, your poverty wasn't caused by Mr. Tepper. You did that to yourself. Instead of turning green with envy, make something of your own life rather than tearing others down.

Wahooo's picture

Are you suggesting we start attending synagogue?

Firepower's picture

You mean my poverty IS DEPENDENT on which Chosenite Fam bore me?

Would they instruct me on how to buy options or short - at just THE PRECISE TIME?

darn WHY DIDN'T I THINK of being born a steinbergoldman.

Strategy As Political Fairy Tale http://wp.me/p2kmGE-2CJ

VWAndy's picture

Think he gets a heads up from the pick pocket team myself.

yogibear's picture

Member of the school of seven bells/banks.

They can pick your pockets without you realizing it. 

 

  1. JPMorgan Chase: 3,391 subsidiaries, with a total asset value of $2.27 trillion.
  2. Goldman Sachs: 3,115 subsidiaries, with a total asset value of $924 billion.
  3. Morgan Stanley: 2,884 subsidiaries, with a total asset value of $750 billion.
  4. Bank of America: 2,019 subsidiaries, with a total asset value of $2.14 trillion.
  5. Citigroup: 1,645 subsidiaries, with a total asset value of $1.87 trillion.
  6. Wells Fargo: 1,366 subsidiaries, with a total asset value of $1.31 trillion.
  7. MetLife: 163 subsidiaries, with a total asset value of $800 billion.
LawsofPhysics's picture

Yes, it's a club, he will go short tommorrow and get the sheep going long...

In any casino this is called a skim...

same as it ever was...

ThroxxOfVron's picture

They are ALL MoneyChangers.

They can't make money without YOU exchanging this for that, one currency or security for another, etc.

YOU are feeding them and they will ALL starve without your 'business'.

Watch this AGAIN for Chirssakes: https://www.youtube.com/watch?v=wM6exo00T5I

Lost in translation's picture

Now?

I took all of my money "off the table" back in December prior to the FOMC meeting.  Really should have done so in June, but better late than never, I suppose...

Soul Glow's picture

Bankers, money changers, traders, they are the scum of the earth.  It isn't that they don't care about the rest of us, it is in fact that they want the rest of us to suffer.  They make money by taking our wealth.  Their job is to steal what we have earned.

If it is from a corporation or from private wealth, they steal the equity, cull the bonds, collapse the coompany structure, they do whatever it takes to make a profit.  They have clients not to make their clients money but to have a bigger book, for the more money they have under their wings the more money they make themselves.

Never believe anything anyone says.  It doesn't matter if you think it is a good guy or not, they have their self interest first.  That is why it is important to stack gold and silver bullion.  Only you are responsible for ypour wealth.  No one else can change the way your wealth is allocated.

Kaiser Sousa's picture

BEAUTIFULLY SAID.

death to the MoneyChangers.

NoWayJose's picture

I bought some oilies in the January dip, but once I saw an article just last night that Tepper had added oilies - I knew I had to sell into today's rally! Back to cash with profits - waiting for the next recommendation from Gdman and Tepper so I can do the opposite!

4 wheel drift's picture

do as i say.....      not as i do

at yer own peril..

'tis the liar's class....

then again....   he has no obligation or duty .....    'to the general public'

 

so why the surprise.... ?

Squid Viscous's picture

he looks like a frog and has never fucked a hot chick without paying top dollar for it, so who cares how many shekels he has, really?

Firepower's picture

*so who cares how many shekels he has, really?*

um, those Manhattan co-ed callgirl 9s who NEVER speak to you

fff333's picture

How does it help him to say this?

gmak's picture

He needs sellers to buy from  without moving the market up.  Saying that it's time to take money off the table gets the great unwashed herd to sell, so that there is enough volume for him to buy. 

homiegot's picture

This is why I listen to Gartman.

Janet Shalom Bernanke's picture

The bigger question is:  Did he continue to hold all of those longs thru December and into Feb?

if so, he will have a lot less money left to buy those 22 year olds he says he plans to buy since dvorcing his 57 year old hag wife Marlene..

Let's hope he held them, and fucking chokes on them.

 

 

"In 2009, he made a trade that netted his company $7.5 billion and gave him a payout of nearly $4 billion.

'What do you think I should do with it?' he asked New York Magazine afterwards. 'I could buy an island. I could buy a private jet... I could get myself a 22-year-old!'

 

venturen's picture

I actually don't worry about guys like this....they don't have FED backing, he does own an investment bank, he doesn't own exchange, he just understands how the market is rigged. Breakup the big banks and see how he does. Also I would like an audit every year of his trading...since he makes a lot of money...just to make sure it is legit. Other than that....he is OK with me. 

Early Retirement's picture
Early Retirement (not verified) Feb 17, 2016 1:39 PM

"And that's why David Tepper is a billionaire."

Well, that and tribal identity. You can't do what he does and be surprised by the Fed or the PPT. And the Fed only lets a certain tribe in on the poop.

Squid Viscous's picture

Alex I'll take "he's a sick fucking kike" for $500...

answer Tepper! Einhorn! Icahn! Ackman! or Loeb!

what did I win?

bluskyes's picture

Can you phrase that in the form of a question?

Yen Cross's picture

  Ya gotta give the captain some credit for going down with his ship?  In all honesty, these fuckers are just looking for bagholders, while they silently unwind their positions at higher levels. same as it ever was

Sudden Debt's picture

Yeah, today all the financial experts where saying on TV how great the economy is.

Sure there's no growth and we have a serious wellfare problem and tax problem, rising unemployment

BUT!

There's other countries that do worse so that means we're good...

I MEAN! FOR GOD'S SAKE! SOMEBODY HAND THOSE GUYS!

 

alphahammer's picture
alphahammer (not verified) Feb 17, 2016 6:25 PM

 

 

13F is notoriously bullshit. The reporting is a minimum of 90 days delayed AND there are no requirement to report shorts or derivatives.

Bottom line. This article is bullshit because nobody (besides Tepper) knows the funds positions in real time.