Hedge fund manager
returned 16.8% in the first half of 2013, bringing his net
annualized 20-year return to 28%. His $17 billion hedge fund
Appaloosa Management in the third quarter reported that he
purchased five new holdings, for a total of 64 stocks in his $6.28
billion portfolio. Tepper has placed 21.6% of his portfolio in ETF,
options and preferred stocks as the largest sector represented,
followed by 18.6% in industrials and 18.6% in financial services.
Tepper is frequently bullish on the U.S. economy. In October,
he told CNBC
he did not foresee the Fed tapering in the near future, and that in
general markets would continue to climb though be hindered by the
Tepper's Five New Stocks
Freeport-McMoRan Copper & Gold (
Tepper bought 1,754,639 shares of Freeport-McMoRan, representing
0.92% of his portfolio. The share price in the third quarter was on
average around $31. The price has increased 20% from the average.
Freeport McMoRan is a global natural resources company dealing in
copper, gold, molybdenum, cobalt, oil and gas, and the world's
second-largest producer of mined copper.
Freeport-McMoRan Copper & Gold has a market cap of $38.05
billion; its shares were traded at around $36.65 with a P/E ratio
of 13.50 and P/S ratio of 1.90. The dividend yield of
Freeport-McMoRan Copper & Gold stocks is 3.40%.
In the third quarter Freeport-McMoRan reported $6.17 billion in
revenue, up from $4.42 billion in third quarter 2012. Net income
was $821 million, or $0.79 per share, compared to $824 million, or
$0.86 per share, in third quarter 2012. At quarter end it had $2.22
billion in cash, down from 3.73 billion at the end of third quarter
Ingredion Inc. (
Tepper bought 297,452 shares of Ingredion, representing 0.31% of
his portfolio. The third quarter average share price on the stock
was $65. It has increased 7% from the average.
Ingredion is a supplier of ingredients to the global food,
beverage, brewing and pharmaceutical industries and a variety of
industrial and pharmaceutical sectors.
Ingredion Inc. has a market cap of $5.31 billion; its shares were
traded at around $69.18 with a P/E ratio of 13.60 and P/S ratio of
0.80. The dividend yield of Ingredion Inc. stocks is 2.00%.
Ingredion Inc. had an annual average earnings growth of 13.30% over
the past 10 years. GuruFocus rated Ingredion Inc. the business
predictability rank of 4-star.
In the third quarter, Ingredion reported a 4% year-over-year
decline to $1.61 billion. Net income declined to $86 million, or
$1.10 per share, compared to $113 million, or $1.145 per share, the
previous year. At quarter-end the company had cash of $1.77
billion, compared to $1.8 billion at year-end 2012. Debt was $618
million, compared to $609 million in the same periods.
Community Health Systems Inc. (
Tepper bought 210,000 shares of Community Health Systems,
representing 0.14% of his portfolio. The third quarter average
price was $43; shares have since declined 2% from the average.
Community Health Systems operates 135 general acute care hospitals
n 29 states.
Community Health Systems Inc. has a market cap of $3.92 billion;
its shares were traded at around $41.21 with a P/E ratio of 21.50
and P/S ratio of 0.30. Community Health Systems Inc. had an annual
average earnings growth of 18.70% over the past 10 years. GuruFocus
rated Community Health Systems Inc. the business predictability
rank of 3.5-star.
In the third quarter, CHS reported revenues of $3.22 billion, a
0.2% increase from the third quarter 2012. Net income was $4.1
million, or $0.04 per share, compared to $44.23 million, or $0.50
per share, in the same periods. At quarter-end CHS had $143.6
million in cash on its balance sheet, down from $387.8 million at
Tenet Healthcare Corp. (
Tepper bought 210,000 shares of Tenet Healthcare Corp.,
representing 0.14% of his portfolio. The third quarter share price
was $42; the share price is about flat from the average.
Tenet Healthcare operates 78 hospitals and 176 outpatient centers
across 42 states.
Tenet Healthcare Corp. has a market cap of $4.16 billion; its
shares were traded at around $41.97 with and P/S ratio of 0.50.
Tenet Healthcare Corp. had an annual average earnings growth of
12.80% over the past five years.
In the third quarter, Tenet reported a 7.9% year-over-year increase
in revenue to $2.62 billion. Net income increased to $36 million
from $32 million in the third quarter 2012. At quarter-end Tenet
reported cash of $82 million, down from $364 million at year-end
J.C. Penney Inc. (
Tepper bought 737,800 shares of J.C. Penney Co., representing 0.1%
of his portfolio. The third quarter average share price was $14; it
has declined 37% from the average.
J.C. Penney is an apparel and home furnishing retailer with 1,100
stores and shopping website at jcp.com. J.C. Penney Co Inc. has a
market cap of $2.65 billion; its shares were traded at around $8.69
with and P/S ratio of 0.20.
In the second quarter ended Aug. 3, 2013, J.C. Penney reported
$2.66 billion in net sales, down from $3.02 billion in the second
quarter of 2012. Its net loss was $586 million, or $2.66 per share,
compared to a net loss of $147 million in the same periods. The
company's cash stood at $1.54 billion at quarter-end, down by $714
million from the first quarter end.
For more David Tepper stocks, see his portfolio here. Also check
out the Undervalued Stocks, Top Growth Companies and High Yield
stocks of David Tepper.About GuruFocus: GuruFocus.com tracks the
stocks picks and portfolio holdings of the world's best investors.
This value investing site offers stock screeners and valuation
tools. And publishes daily articles tracking the latest moves of
the world's best investors. GuruFocus also provides promising stock
ideas in 3 monthly newsletters sent to