Appaloosa Management, the hedge fund managed by David Tepper reported that its equity portfolio has a market value of approximately $4.04 billion based on its 13F filing with the Securities and Exchange Commission (SEC).

During the previous quarter, Appaloosa’s equity portfolio had a market value of more than $6.78 billion, which means the amount of its current total stockholdings is lower by around $2.7 billion.

Last November, it had been reported that the hedge fund plans to return 10% to 20% of investors’ assets by the end of 2014. Appaloosa’s move came after its recorded losses on October amid tough market conditions. Tepper admitted that he made some bad calls last year.

Appaloosa new stockholding

Appaloosa’s new stockholding during the fourth quarter was American Realty Capital Properties, a real investment trust (REIT) company. The hedge fund acquired 2,927,632 shares of the company with a market value of about $26.49 million.

Last October, American Realty Capital Properties merged with Cole Real Estate Investments to create the largest net lease REIT worldwide. The combined company has an enterprise value of $21.5 billion.

The company found that its financial statements going back December 31, 2013 were unreliable based on the results of the investigation of its audit committee. Its CEO David Kay emphasized that the accounting issues were unacceptable, and they are taking necessary steps to ensure that it will never happen again.

American Realty Capital Properties is currently a target of shareholder activism particularly by Corvex Management, which is demanding a board seat. The activist hedge fund recently suggested ground principles that should be implemented by a new leadership of the company.

Appaloosa increased positions

During the quarter, Appaloosa increased its position in Terex Corporation by 91,143 shares to 1,651,706 shares worth approximately $46.05 million.

Terex Corporation is a lifting and material handling solutions company.Analysts at Citigroup recently maintained their Neutral rating for the shares of the company and lowered their price target to $25. On the other hand, analysts at Barclays issued an Overweight rating with a $29 price target. The stock closed $25.15 on Friday, February 13.

Appaloosa also boosted its stake in HD Supply Holdings by 17,479 shares to 1,304,309 shares worth $38.46 million. The company is an industrial distributor in North America. Last month, the company completed the sale of its business unit, HD Supply Hardware Solutions formerly known as Crown Bolt to Home Depot.

Analysts at Zacks Equity Research recently issued a Neutral rating for the shares of HD Supply Holdings. The stock price of the company slightly increased to $28.62 per share on Friday. The company gained more than 29% over the past year.

Appaloosa also increased its investment General Motors Company warrant (expires 07/10/2016) by 5,132 shares to 190,011 shares worth $4.8 million. The hedge fund increased its position in GM warrant (expires 07/10/2019) by 5,132 shares to 190,011 shares worth about $3.25 million.

Appaloosa closed out positions

During the period, Appaloosa Management closed out its positions in Apple, Alibaba Group Holding Limited and Facebook.

The hedge fund also sold out its stake in Citigroup, Ford Motor Company, Halliburton, MGM Resorts International among others.

Appaloosa Cuts Equity Portfolio; Sells Apple, Facebook Stakes
Source: Insider Monkey