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.