Billionaire David Tepper is a renowned hedge fund investor, and he established his firm Appaloosa Management with a preliminary capital of $57 million. During the first year of its investment, the firm earned a gross investment of 57.6%. Later within the next 3 years, the firm became popular within the broader index market. According to the available data, during the recession of 2008, the average income from the hedge fund stands at 25% on a yearly basis. The strategy of David Tepper is to invest in bearish bank securities at a time when the financial market is in crisis. In this way, the billionaire reaps maximum profit at times when the market improves. Apart from investing in bank securities, the billionaire investor also invests in debt of distressed companies, stocks, and bonds. He earned a degree in Economics way back in the year 1978 from University of Pittsburgh. Later, in 1982, he got an MBA degree. He began his career as an analyst at Goldman Sachs in 1985. He rose to the level of head trader in the same company and his primary duty involved dealing with junk bonds. This article covers Top 5 Stock Picks by Billionaire David Tepper as shared by Insider Monkey in one of their Yahoo posts.
One of the top stock picks of Billionaire David Tepper is Facebook. As per available data, the stock price of the company performed well during the coronavirus pandemic as people were busy interacting with one another through social media platforms. Appaloosa Management invested in Facebook during 2016 and since then, the share price of the company has gone up by 186%. During the last one year, the share price of Facebook increased by 27%. This stock accounts for 8.18% of Tepper’s overall portfolio. Another largest investment of Appaloosa Management is Micron Technology. As per available data, the share price of the company increased by 40% during the past 1 year. Meanwhile, since 2016, the share price went up by 31%. The portfolio of Appaloosa Management accounts for 10.17% shares in Micron Technology. According to Bonsai Partners, “If there’s one investment mistake I’ve made multiple times in my career it’s accepting lower quality businesses available at attractive prices. I hope I’m not repeating this mistake again with Micron.” Do you like this information? You can read more about other companies at Billionaire David Tepper’s Top 10 Stock Holdings. You will find the information useful.