One of the greatest hedge fund investors of all time,
is the president and founder of hedge fund Appaloosa Management
where he has earned a global reputation for producing some of the
highest returns ever on Wall Street. Tepper's windfalls have been
made in banking, housing, and power companies, as well as on the
bankruptcies of giants like Enron and others. A renowned
philanthropist, Tepper has earned the moniker of "the true alpha"
investor, claiming fame for a historical record payday of $4
billion in 2009. Tepper personally made $2.2 billion in 2012. As of
September 2013, Tepper had a net worth of $7.9 billion, according
to Forbes, also naming Tepper as the highest-earning among the top
40 hedge fund managers and traders in 2013.
Appaloosa Management was founded by
and Jack Walton in 1993. The hedge fund specializes in distressed
debt and invests in public equity and fixed income markets around
the world. Appaloosa had net returns of almost 30% last year, with
an average annual return of 23.3% over 5 years, and 29.2% since
inception in 1993. The stocks bought by
averaged a 12-month return of 21.45%. In 2010, he returned 22%
compared to the S&P500 at 15.06%. His 15-year cumulative return
is 27.4% annually.
's updated portfolio lists 64 stocks, five of them new, a total
value of $6.28 billion, and a quarter-over-quarter turnover of 4%.
The portfolio is weighted with top sectors: ETF, options, preferred
at 21.6%, industrials at 18.6% and financial services at 18.6%.
Here's an update on Tepper's top three high-yield stocks, starting
with a real estate investment trust, Chimera Investment
Corporation, the highest-yield stock in his third quarter
Chimera Investment Corporation (
Current Shares: 2,830,152
Up 9% over 12 months, Chimera Investment Corporation is a real
estate investment trust with a market cap of $3.1 billion; the
enterprise value is $4.92 billion. Shares were traded at around
$3.02, with an EV-to-EBIT ratio of 11.60.
Organized in 2007, Chimera Investment Corporation operates as a
specialty finance company that invests in residential mortgage
backed securities, or RMBS, residential mortgage loans, real
estate-related securities and various other asset classes. The
company has focused its investment activities on acquiring
non-agency RMBS and on purchasing residential mortgage loans that
have been originated by select high-quality originators, including
the retail lending operations of commercial banks.
As of Sept. 30, 2013, David Tepper reduced his position by 1.97%,
selling 57,000 shares at an average price of $2.96 per share, for a
Over seven quarters of mixed results, David Tepper has averaged a
gain of 14% buying 10,809,974 shares at an average price of $2.65
per share. Selling, he gained 1% on 7,979,822 shares at an average
price of $2.98 per share.
Tracking historical data since 2007:
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Here's a look at more guru and insider trading.
Freeport-McMoRan Copper & Gold (
Current Shares: 1,754,639
Up 7% over 12 months, Freeport-McMoRan Copper & Gold has a
market cap of $35.56 billion; its shares were traded at around
$34.47 with and P/E ratio of 12.50. GuruFocus currently ranks FCX
with one star out of five stars for business predictability.
Incorporated in 1987, Freeport-McMoRan Copper & Gold deals in
the mining of copper, gold and molybdenum. The company's portfolio
of assets includes the Grasberg minerals district in Indonesia,
significant mining operations in North and South America, and the
Tenke Fungurume minerals district in the Democratic Republic of
As of Sept. 30, 2013, David Tepper made a new buy of 1,754,639
shares at an average price of $30.56 per share, for a 12.1% gain.
Tepper last sold out 520,337 shares at an average price of $34.02
per share in the first quarter of 2013, when he made a gain of
Over three quarters of mixed results, David Tepper has averaged a
gain of 12% buying 1,754,639 shares at an average price of $30.56
Tracking historical data:
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Tepper is one of four gurus who made a new buy of FCX in the third
Here's more guru and insider activity.
Carnival Corporation (
Current Shares: 903,619
Down 6% over 12 months, Carnival Corporation has a market cap of
$28.73 billion; its shares were traded at around $35.66 with and
P/E ratio of 25.10.
GuruFocus currently rates CCL with one star out of five stars for
Carnival Corporation is a global cruise and vacation company.
Carnival Corporation was incorporated in Panama in 1972 and
Carnival Plc was incorporated in England and Wales in 2000. The
company's portfolio of cruise brands includes Carnival Cruise
Lines, Holland America Line, Princess Cruises and Seabourn in North
America, and others.
As of Sept. 30, 2013, David Tepper reduced his position by 49.24%,
selling 876.430 shares at an average price of $36.31 per share,
taking a 2% loss.
Over two quarters, David Tepper has averaged a gain of 5% buying
1,780,049 shares at an average price of $33.86 per share. Selling,
he lost 2% on 876,430 shares at an average price of $36.31 per
Check out the guru and insider activity.
Tracking historical data:
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Here is the complete portfolio of David Tepper
1. David Tepper's Undervalued Stocks
2. David Tepper's Top Growth Companies
3. David Tepper's High Yield stocks
4. Stocks that David Tepper keeps buying
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