David Tepper Dumps Google, But Loves General Motors And Apple

David Tepper’s Appaloosa Management’s equity portfolio is losing. Over the second quarter of the year, its market value fell from $5.7 billion to $4.03 billion. Despite this, knowing what Tepper is investing in might provide some interesting research-backed ideas.

Over the quarter, the fund started three new stock positions, sold out of another seven, increased its stakes in six companies, and trimmed them in another 14. In terms of allocation:

• 38 percent of the portfolio’s assets were allocated to consumer discretionary stocks
• 19 percent to information technology
• 15 percent to industrials
• 11 percent to healthcare
• 9 percent to transportation stocks
• 7 percent to materials
• Less than 1 percent to finance stocks

The firm’s largest bet was placed on General Motors Company GM, which rose from second place in Appaloosa’s first quarter list after the fund boosted its stake by 22 percent over the second quarter. It now owns 18,796,165 shares of the automaker, worth roughly $626 million, which make it one of the top 15 institutional investors in the company.

Another company that felt Tepper’s bullishness is Apple Inc. AAPL. Over the second quarter, the fund started a new position, comprising 2,518,167 shares of the tech behemoth, worth more than $315 million. Apple is now third in Appaloosa’s list, only trailing General Motors and HCA Holdings Inc HCA.

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Tepper seems bullish on Google Inc GOOGL GOOG. Between April and June, the fund sold all of its 342,437 GOOGL shares, and disposed of 14 percent of its GOOG shares. It now holds 349,055 GOOG shares, worth roughly $181 million.