Tepper, a non-performing debt specialist, became interested in the stock market as a young boy and watched his father trade stocks in his hometown of Pittsburgh. The Appaloosa Fund Manager has since built an international reputation for generating some of the highest returns among fund managers on Wall Street.
According to CNBC sources, Tepper announced in May 2019 that it plans to convert Appaloosa into a family office so that it can focus on managing the Carolina Panthers NFL football franchise, which he will sell for over $ 2.27 billion in 2018. Bought Dollars The $ 3.94 billion equity portfolio includes 22 stocks with 13% sales. The three main sectors in terms of portfolio weight are communication services, cyclical consumers and technology with weights of 31.53%, 30.05% and 17.39%.
<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "New purchase: Intelsat“data-reactid =” 46 “>New purchase: Intelsat
Appaloosa acquired 2,885,019 shares from Intelsat, which corresponds to a 0.51% stake in the equity portfolio. Shares averaged $ 15.33 for the quarter.
The Luxembourg-based telecommunications company offers media companies, fixed-line and mobile operators as well as providers of data network services diversified communication services. According to GuruFocus, Intelsat’s interest coverage and debt ratios over 90% of global competitors, indicating a lack of financial strength.
Maverick Capital from Lee Ainslie (Trades, Portfolio) also acquired shares in Intelsat in the quarter.
<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Alibaba“data-reactid =” 83 “>Alibaba
After buying 1.3 million shares from Alibaba in the previous quarter, it added 1.1 million more shares, increasing its holding by 84.62% and its share portfolio by 5.92%. The Chinese retail giant’s shares averaged $ 188.59 in the fourth quarter.
The Hangzhou, China-based company announced last week that its quarterly sales were 161.456 billion yuan ($ 23.192 billion). This corresponds to an increase of 38% compared to the previous year, as the annual active consumers and mobile monthly active users increased in double digits. Daniel Zhang, CEO of Alibaba, said that the Global Shopping Festival set a new record for retailers and partners on November 11 and grossed over 268.4 billion yuan via Alipay, an increase of 26% over that Corresponds to previous year.
Alibaba’s three-year sales growth rate of 52.80% surpasses over 96% of global competitors and contributes to a GuruFocus profitability rank of 9. In addition, operating margins exceed 94% of global retailers, despite shrinking in the past five years.
Steven Romick (trades, portfolio), Charles Brandes (trades, portfolio), Brandes Investment, Ken Heebner (trades, portfolio) and Howard Marks (trades, portfolio) Oaktree also bought shares in Alibaba in the quarter.
<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Micron technology“data-reactid =” 152 “>Micron technology
Appaloosa added 2.1 million shares in Micron Technology, increasing its position by 35% and its portfolio by 2.86%. Shares averaged $ 47.96 for the quarter.
The company, based in Boise, Idaho, offers dynamic memory chips with random access for servers and PCs. GuruFocus rates Micron’s profitability as 9 out of 10 based on several positive investment signs, including a 3.5-star corporate predictability ranking, a three-year sales growth rate that exceeds 80.55% of global competitors, and a double-digit operating margin on average over the past five years.
<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "power transmission“data-reactid =” 195 “>power transmission
The fund added 5,374,026 shares of Energy Transfer, increasing the position by 91.75% and the share portfolio by 1.75%. The shares averaged $ 12.32 in the quarter.
The Dallas-based company operates a large platform for crude oil, natural gas and liquid assets throughout Texas and the region on the central continent of the USA. GuruFocus rates the profitability of Energy Transfer with 7 out of 10 points: the operating margins increase and exceed 68% of global competitors, although the sales growth in three years exceeds slightly more than half of the medium-sized energy companies.
<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Amazon“data-reactid =” 238 “>Amazon
The fund added 26,500 Amazon shares, increasing its stake by 10% and its equity portfolio by 1.24%. Seattle-based retail giant shares averaged $ 1,771.74 for the quarter.
GuruFocus rates Amazon’s profitability as 8 out of 10 based on several positive investment signs, including a 4.5-star rank for corporate predictability and a three-year sales growth rate that exceeds 91% of global competitors.
Despite its high profitability, Amazon’s valuation shows several signs of overvaluation in 1st place out of 10, including a share price close to a 10-year high and several price valuations that outperform over 90% of global competitors.
Warren Buffett (Trades, Portfolio) Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B) held 537,300 Amazon shares at the end of the quarter.
Disclosure: No positions.
Read more here:
- David Einhorn’s Greenlight buys DXC and increases 2 holdings in the 4th quarter
- Andreas Halvorsen’s top 5 purchases in the fourth quarter
- Ray Dalios Bridgewater buys Buffett’s banks in the fourth quarter
<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Not a premium member of GuruFocus? Sign up for one Free 7-day trial here,“data-reactid =” 330 “>Not a premium member of GuruFocus? Sign up for one Free 7-day trial here,
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This article was first published on guru Focus,
“data-reactid =” 331 “> This article first appeared on GuruFocus.