David Tepper Goes On Buying Spree, Top-Ticks Financials And Tech Stocks

Tyler Durden's picture

Sometime around March 31 the market was soaring, and there were still those naive, clueless ones, who thought that 2012 would not be a carbon copy of 2011. Rumors of more QE were becoming quieter and quieter as the S&P was on a rampage, the economy was humming along (courtesy of the reacord warm winter as ZH predicted in January, but this would not be widely accepted for at least 2-3 more weeks), Europe was "fixed" and the world was a lovely place. It is right there that everyone's favorite "baller to the waller" David Tepper went all in and bought anything that moves, or doesn't, in financials and tech. As the chart below shows, after having a mere $764 million in equity AUM at the end of December 31, Appaloosa went on an epic liftathon, and increased its AUM to a whopping $4.1 billion in the span of 3 months.

Having cut just his two positions in Boston Scientific and Hartford, Tepper then nearly doubled his holdings to a total of 53 different CUSIPs, with a focus almost exclusive on banks and tech.

Here are the key additions:

  • QQQ: new $1.3 billion position;
  • Apple: $410 MM from $73 MM;
  • Citi: new $223 MM position;
  • United Continental: up to $171 MM from $22 MM;
  • Google: new $104 MM position;
  • QCOM: new $102 MM position;
  • Goodyear: up to $97 MM from $86 MM;
  • Broadcom: new $95 MM;
  • Ford Motor: new $82 MM position;
  • Bank of America: new $71 MM position.
  • And so on.

Which means that unless he sold everything in the past 2 weeks, which he didn't, Tepper is now stuck holding a flaming bag of, well, stocks which are about 15-20% cheaper than they were at March 31 - something he and his LPs will hardly be happy with.

So what happens next? Expect another book talking TV interview on the Comcast/GE Joint Venture fin-comedy station, by the man who appeared on CNBC once back in September 2010 and sent the DJIA soaring (or rather helped QE2 off on its brief but Bon Voyage, which launched at the same time). We can only hope that the script will be somewhat updated since his last appearance.

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Colombian Gringo's picture

Balls, big balls,  that's why he is so successful. No inside info, no friendly deals, no free money from the Fed. Yep, I'm a believer.

Future Tense's picture

It could get ugly for Tepper since Art Cashin said today that Greece leaving the Eurozone will be "Lehman on Steroids":

http://www.ftense.com/2012/05/art-cashin-greece-leaving-euro-would-be.html

navy62802's picture

Nonsense, it's all priced in!!

</evil laugh>

Divided States of America's picture

Ha, so AppalOSER was basically doing the job of the PPT as the markets ramped higher on low volume and crap headlines in Q1 2012.

Guess, the Fed decided to give him a few more billion dollars to manage

The trend is your friend's picture

Way to earn that 2 and 20 Tepper. After he blows himself up his new fund can be called....Top tickin Tepper asset mis-management.

ArkansasAngie's picture

Talking about going all in.

Is this the next house to call on Bernanke for a mainline injection of casharoo?

GernB's picture

I don't care how you slice it, he would have made 10-15% more if he made that move today rather than when he did.

Brokenarrow's picture

You bought, too,eh?

If Greece unwinds this or next week, depending on how much leverage he;s used, he could be down 40%

Brokenarrow's picture

You bought, too,eh?

If Greece unwinds this or next week, depending on how much leverage he;s used, he could be down 40%

IMA5U's picture

stop

 

he came from goldman distressed

 

get your facts straight

Bill D. Cat's picture

A flaming bag indeed .

cossack55's picture

Are you referring to the stocks or Davey.

Bill D. Cat's picture

The stocks ...... don't try to extinguish the flames by stomping them out .

YesWeKahn's picture

That bag contains a bomb. It will explode this friday.

distopiandreamboy's picture

Can we get an Anti-Tepper ETF going? Perhaps lever it 5:1 too just for kicks.

Pike Bishop's picture

The most recent Bizarro-Tepper ETF on the NFLX/GMCR diverging twins paid a quick ~20%.

Bizzaro-Tepper moves only inversely correlate to Tepper's disaster, if/when ZH mentions him.

There is some relationship between ZH being in the mood to break his balls, and Tepper's bets shitting the bed.

I feel no need to explain correlations, I just report them.

Freddie's picture

Wasn't the Tyler(s) taking the piss out of Whitney Tilson or whatever his name is?  It was an inverse ZH version ETF.

asteroids's picture

Sold to you.... sucker.

CvlDobd's picture

A HEMI! Balls to the wall!

Diablo's picture

Jim Rogers on why (one of the reasons) he's been short JPM; "they have a person running commoditiies that doesnt know what theyre doing"   LOL

at 8:45 http://video.cnbc.com/gallery/?video=3000090221&play=1

Broccoli's picture

Check my math here.

He goes from .76 to 4.1 billion. Unless he is great salesman, he just leveraged 5.3 to 1. Or he has 18% of his AUM to meet the margin requirements.

His public positions could have lost as much as 20% in that timeframe. Next news going to be margin call forced liquidation and returning what's left to investors? I hope he took the hedge in hedge fund seriously.

 

Cursive's picture

@Broccoli

I don't think he had fund inflows, so who is providing his margin?  Interesting game of dominoes.

I should be working's picture

I sure hope he's levered 5:1, probably 10:1 by now...

I'll be watching those stocks for liquidation prices. Thanks for playing...

Putty's picture

He could have be invested in other things such as bonds, futures, or just been in cash.  The 760 million to 4.1 billion was his increase in equities.

Putty's picture

He could have be invested in other things such as bonds, futures, or just been in cash.  The 760 million to 4.1 billion was his increase in equities.

Freddie's picture

Tepper is a democrat and an O bundler.  They get special treament and AUM.  Just like CALPERS became a Dem slush fund.

Waterfallsparkles's picture

Looks to me that he is trying to double down on a bad position.  This again will lead to his falure.

The more you double down, if a stock continues to go down the more you lose.  Bad move on his part.

Wall Street will have  a field day with him again.

Joe The Plumber's picture

Never double down
Never go full retard
Never believe the chic when she says she is on birth control if you are rich and or famous

Id fight Gandhi's picture

Yep. Thats when his short term trades become longer term holds.

Quit while you're ahead.

Jacque Itch's picture

Justice beeyatcheezzzzzzz... for now.  Probably hasn't had a sound sleep for at least a month, unless he passed out after binging.

 

junkyardjack's picture

He should have bought gold, it did much better than AAPL. Oh wait...

no life's picture

Looks like he just got kicked in the balls..

skepticCarl's picture

We bears might get an endzone dance at Mr. Teppers expense, but the game's not over, and I won't celebrate victory until we get near those March 09 lows.

tomreagan's picture

If you cannot recognize the Mark in the room, well...

mt paul's picture

mark it to zero

market to zero

 

long silver

I should be working's picture

Ha, buy high and sell low, bitchez...

icanhasbailout's picture

Get down to brass tacks: how big a bailout check am I going to be forced at gunpoint to write for him?

IMA5U's picture

tepper probably already sold

he's a fast trader

orangegeek's picture

good night and big balls.

TooBearish's picture

Sorry but this is a great strategy- FB IPO is gunna mark a SHORT term bottom here real quick and Tepper just bot himself SIZE LEVEGAGED ALPHA...should be good for a 2 bagger..go David!

Shizzmoney's picture

sick run, I'd cashout immed

bagholder's picture

Pretty sure he's 90 % bonds and preferreds kind of fund
And straight equities is the vast minority of what he does, thus this filing doesn't represent his entire book

Conman's picture

Wow what a terrible portfolio. He might as well have just bought index funds.

fallst's picture

Sell in May  Walk Away  Member?

When does this Euro Opera End? 3 more years of this probably.

time123's picture

David Tepper must be onto something here. Lots of people are shorting right now. I expect a major short covering rally any day now. You heard it here first.

 

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