A Deep Dive into NVIDIA’s Significant Cutback

Information from Appaloosa Management’s latest 13F filing

David Alan Tepper, the esteemed founder of Appaloosa Management, has once again made headlines with his latest 13F filing for Q2 2024. Known for his investment acumen, Tepper’s strategies often reflect his deep understanding of market dynamics, honed over years of experience since his early days in Pittsburgh. Appaloosa Management, based in Miami Beach, Florida, is renowned for its focus on global equity and public bond markets, with particular expertise in distressed debt investing.

Key Portfolio Adjustments and Increases

During the second quarter, David Tepper (Trades, Portfolio) made significant adjustments to his portfolio, including increasing his holdings in 9 stocks. Notably, Tepper’s investment in Lyft Inc (NASDAQ:LYFT) jumped 1,602.51%, adding 7,493,639 shares, bringing the total to 7,961,257 shares. This transaction impacted his current portfolio by 1.71%, which is valued at approximately $112,253,720. Another significant increase was in the KraneShares CSI China Internet ETF (KWEB), where he added 1,015,000 shares, resulting in a 29.21% increase in the share count and a total value of $121,319,800.

Strategic exits

Tepper’s strategy also included complete exits from some stocks. He notably sold all 45,000 shares of Norfolk Southern Corp (NYSE:NSC), which had a -0.17% impact on the portfolio.

Significant discounts

Tepper’s portfolio adjustments included reducing positions in 26 stocks. The largest reduction was NVIDIA Corp (NASDAQ:NVDA), where he reduced his holdings by 3,730,000 shares, a decrease of 84.39%. This reduction had a -4.99% impact on the portfolio. NVIDIA stock traded at an average price of $101.1 during the quarter, returning 29.19% over the past three months and 138.34% year-to-date. Another significant reduction was Microsoft Corp (NASDAQ:MSFT), where the stock declined 15.62%, impacting the portfolio by -1.36%.

Portfolio Overview and Sector Focus

As of Q2 2024, David Tepper’s (Trades, Portfolio) portfolio consisted of 37 stocks. Top holdings included 12.24% in Alibaba Group Holding Ltd (NYSE: BABA), 10.87% in Amazon.com Inc (NASDAQ: AMZN), 8.55% in Microsoft Corp (NASDAQ: MSFT), 7.63% in Meta Platforms Inc (NASDAQ: META), and 5.72% in Alphabet Inc (NASDAQ: GOOG). Investments are primarily concentrated in seven sectors: technology, consumer discretionary, communication services, energy, industrials, healthcare, and real estate.

The story continues

This detailed analysis of David Tepper’s (Trades, Portfolio) latest 13F filing highlights his strategic investment decisions, reflecting both his optimistic and cautious stances across various sectors. As markets continue to evolve, Tepper’s decisions provide valuable insights for investors seeking to understand the complexities of portfolio management in today’s economic environment.

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