The latest 13F filing from Appaloosa Management, the hedge fund managed by David Tepper, showed that its assets under management increased from $4,716,751,373 to $6,917,241, 000 in the second quarter of fiscal 2013.
Tepper is regarded as one of best hedge fund managers because of the outstanding performances of his hedge fund. He was able to project the housing crisis correctly and its subsequent recovery, which won him some impressive gains. Appaloosa Management delivered an average annual return of 30% since its establishment.
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In a previous statement, Tepper expressed his positive conviction about the economy. He said, “It’s so overwhelming. The economy is getting better, autos are better, housing’s better, it continues to improve, they can’t find enough people to work in housing, that’s the only thing holding it back right now.”
Appalossa Management’s largest positions
During the second quarter, Appaloosa Management’s stockholdings representing the biggest percentage in its portfolio include SPDR S&P 500 ETF Trust (NYSEARCA:SPY) 18.94% in its portfolio, Citigroup Inc (NYSE:C) 6.66%, PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) 5.92%, The Goodyear Tire & Rubber Company (NASDAQ:GT) 4.86%, and United Continental Holdings Inc (NYSE:UAL) 3.5%.
Major new positions
Appaloosa Management 15 new stocks during the quarter, and its major new positions include SPDR S&P 500 ETF Trust (NYSEARCA:SPY) 8,186,960 shares, PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) 5,750,000 shares, Chicago Bridge & Iron Company N.V. (NYSE:CBI) 1,501,044 shares, Axiall Corp (NYSE:AXLL) 1,877,715 shares, and Hertz Global Holdings, Inc (NYSE:HTZ) 2,984,439 shares.
In addition, the hedge fund also acquired 2, 173, 825 shares of Terex Corporation (NYSE:TEX), 1,780,049 shares of Carnival Corporation (NYSE:CCL), SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) 1,000,000 shares, and Trinity Industries Inc (NYSE:TRN) 937, 785 shares among others.
During the period, Apaloosa Management purchased additional 6,769, 199 shares of Goodyear Tire & Rubber Company (NASDAQ:GT) bringing its stake to 22,000,000 shares. The hedge fund is now the biggest shareholder of the company.
The hedge fund also increased its stockholdings in Bank of America Corp (NYSE:BAC) by 3,861,599 shares to 6,344,607 shares; KBR, Inc. (NYSE:KBR) by 1,317,886 shares to 1,769,711 shares; Citigroup Inc (NYSE:C) by 1,082,092 shares to 9,601,639 shares; and Delta Airlines, Inc (NYSE:DAL) by 466,749 shares to 10,290,884 shares.
Reduced and sold out stockholdings
The hedge fund reduced its stake in American International Group Inc (NYSE:AIG) by 1,492,207 shares, Boyd Gaming Corporation (NYSE:BYD) by 1,051,006 shares, Chimera Investment Corporation (NYSE:CIM) 1,676,338 shares, Ford Motor (NYSE:F) 1,261,158 shares, and Apple Inc (NASDAQ:AAPL) by 156,996 shares.
Appaloosa Management sold out its entire position in Two Harbors Investment Corp (NYSE:TWO), MFA Financial, Inc (NYSE:MFA), and Silver Bay Realty Trust Corp (NYSE:SBY).