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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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Mon, 05/14/2012 - 18:19 | 2425121 Colombian Gringo
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.

Mon, 05/14/2012 - 18:21 | 2425127 Future Tense
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

Mon, 05/14/2012 - 18:44 | 2425170 navy62802
navy62802's picture

Nonsense, it's all priced in!!

</evil laugh>

Mon, 05/14/2012 - 18:53 | 2425191 Divided States ...
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

Mon, 05/14/2012 - 20:05 | 2425294 The trend is yo...
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.

Mon, 05/14/2012 - 18:23 | 2425130 ArkansasAngie
ArkansasAngie's picture

Talking about going all in.

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

Mon, 05/14/2012 - 18:42 | 2425164 GernB
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.

Mon, 05/14/2012 - 20:30 | 2425338 Brokenarrow
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%

Mon, 05/14/2012 - 20:30 | 2425339 Brokenarrow
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%

Mon, 05/14/2012 - 20:02 | 2425293 IMA5U
IMA5U's picture

stop

 

he came from goldman distressed

 

get your facts straight

Mon, 05/14/2012 - 18:19 | 2425123 Bill D. Cat
Bill D. Cat's picture

A flaming bag indeed .

Mon, 05/14/2012 - 18:23 | 2425132 cossack55
cossack55's picture

Are you referring to the stocks or Davey.

Mon, 05/14/2012 - 18:24 | 2425136 Bill D. Cat
Bill D. Cat's picture

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

Mon, 05/14/2012 - 18:21 | 2425125 YesWeKahn
YesWeKahn's picture

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

Mon, 05/14/2012 - 18:23 | 2425134 distopiandreamboy
distopiandreamboy's picture

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

Mon, 05/14/2012 - 19:04 | 2425202 Pike Bishop
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.

Mon, 05/14/2012 - 22:08 | 2425573 Freddie
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.

Mon, 05/14/2012 - 18:25 | 2425138 asteroids
asteroids's picture

Sold to you.... sucker.

Mon, 05/14/2012 - 18:29 | 2425140 CvlDobd
CvlDobd's picture

A HEMI! Balls to the wall!

Mon, 05/14/2012 - 18:34 | 2425145 Diablo
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

Mon, 05/14/2012 - 18:37 | 2425151 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

Hubris kills

Mon, 05/14/2012 - 18:38 | 2425153 Broccoli
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.

 

Mon, 05/14/2012 - 18:59 | 2425198 Cursive
Cursive's picture

@Broccoli

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

Mon, 05/14/2012 - 19:06 | 2425205 NotApplicable
NotApplicable's picture

Who? Must be us.

Mon, 05/14/2012 - 20:02 | 2425289 I should be working
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...

Mon, 05/14/2012 - 21:40 | 2425521 Putty
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.

Mon, 05/14/2012 - 21:39 | 2425522 Putty
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.

Mon, 05/14/2012 - 22:46 | 2425657 Freddie
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.

Mon, 05/14/2012 - 18:44 | 2425161 Waterfallsparkles
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.

Mon, 05/14/2012 - 19:47 | 2425257 Joe The Plumber
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

Mon, 05/14/2012 - 21:11 | 2425435 Id fight Gandhi
Id fight Gandhi's picture

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

Quit while you're ahead.

Mon, 05/14/2012 - 18:43 | 2425165 Jacque Itch
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.

 

Mon, 05/14/2012 - 18:45 | 2425172 junkyardjack
junkyardjack's picture

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

Mon, 05/14/2012 - 18:49 | 2425185 no life
no life's picture

Looks like he just got kicked in the balls..

Mon, 05/14/2012 - 19:23 | 2425230 skepticCarl
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.

Mon, 05/14/2012 - 19:25 | 2425235 tomreagan
tomreagan's picture

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

Mon, 05/14/2012 - 19:39 | 2425252 mt paul
mt paul's picture

mark it to zero

market to zero

 

long silver

Mon, 05/14/2012 - 19:58 | 2425279 I should be working
I should be working's picture

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

Mon, 05/14/2012 - 20:02 | 2425287 icanhasbailout
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?

Mon, 05/14/2012 - 20:01 | 2425290 IMA5U
IMA5U's picture

tepper probably already sold

he's a fast trader

Mon, 05/14/2012 - 20:14 | 2425323 orangegeek
orangegeek's picture

good night and big balls.

Mon, 05/14/2012 - 20:34 | 2425351 TooBearish
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!

Mon, 05/14/2012 - 20:43 | 2425367 Shizzmoney
Shizzmoney's picture

sick run, I'd cashout immed

Mon, 05/14/2012 - 22:13 | 2425581 bagholder
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

Mon, 05/14/2012 - 22:16 | 2425584 Conman
Conman's picture

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

Mon, 05/14/2012 - 22:29 | 2425617 fallst
fallst's picture

Sell in May  Walk Away  Member?

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

Tue, 05/15/2012 - 00:09 | 2425845 time123
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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