David Tepper snapped up stocks in various companies from technology, digital payment services providers, construction, and a fitness and media company.
David Tepper is a billionaire investor founder of Appaloosa Management with a real-time net worth of $15.8 billion. His wealth has grown by four billion USD since 2017.
David Tepper has a knack for buying distressed bargains. His dabbling in junk bond investing during the market crash of 1989 saved Goldman Sachs from bankruptcy.
Moreover, in the financial crisis of 2008, he invested in depressed and beaten down bank securities and delivered a 132% return to shareholders in 2009.
No doubt, the billionaire has been busy buying distressed assets during the 2020 pandemic lockdowns.
“David Tepper snapped up stocks in various companies from technology, digital payment services providers, construction, and a fitness and media company”
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The latest filings show that David Tepper snapped up stocks in Uber Technologies, which was top on the list of Appaloosa’s stock buys
Uber Technologies is an American technology company that specializes in ride-hailing as well as offers delivery services to its consumers.
David Tepper’s Appaloosa Management started building its position in Uber Technologies, Inc. (NYSE: UBER) in Q2 2021, with over 2 million shares, worth $101.9 million. The company currently represents 2.11% of the hedge fund’s 13F portfolio.
In September, JPMorgan lifted its price target on Uber Technologies, Inc. (NYSE: UBER) to $72, while keeping an ‘Overweight’ rating on the shares. The firm’s analyst believes that the company will benefit as driver supply trends are improving. In Q2 2021, Uber Technologies, Inc. (NYSE: UBER) posted a GAAP EPS of $0.58, beating the estimates by $1.11. In the past year, the stock returned 31.3% to shareholders.
Furthermore, 135 hedge funds tracked by Insider Monkey have positions in Uber Technologies as of Q2 2021, which is up from 130 in the previous quarter. These stakes are valued at $10.4 billion.
“Uber Technologies is an American technology company that specializes in ride-hailing as well as offers delivery services to its consumers”
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ClearBridge Investments also mentioned Uber Technologies in its Q2 2021 investor letter.
“The pandemic has also brought attention to the question of gig worker employment status for companies, including ClearBridge holdings Uber and Lyft. In the U.K., Uber proactively classified its drivers as “workers” ahead of final rulings from the British court system. The worker status in the UK is a designation between self-employed and employed status that entitles drivers to minimum wage, holiday pay, and in some cases a pension.
“Uber establishes more certainty on costs and visibility into its regulatory environment and operating conditions in the future” – ClearBridge Investments
ClearBridge has engaged with Uber on labor issues since its IPO, and we have given feedback over that time to the CEO, CFO, Chief Legal Officer, and Investor Relations on labor relations as well as strategy and communications. Uber’s agreement on this designation is ahead of other competitors in the market and the legal mandate represents a step forward in the company’s thinking about labor. The agreement represents a short-term hit to earnings, yet in some ways, it places Uber ahead of the market in its ability to balance labor and shareholder interests. Workers benefit from improved conditions, with new contributions amounting to roughly 3% of a driver’s earnings, while Uber establishes more certainty on costs and visibility into its regulatory environment and operating conditions in the future.”
David Tepper snapped up stocks in PulteGroup (NYSE: PHM), an American home construction company operating in 44 markets and 23 states
The company is second on our list of billionaire David Tepper’s newest stock picks.
David Tepper’s Appaloosa started acquiring a position in PulteGroup in Q2 2021, with 1.5 million shares, valued at over $82.3 million. The company represents 1.7% of the hedge fund’s 13F portfolio. In July, BTIG lifted its price target on PulteGroup, to $77, while keeping a ‘Buy rating on the shares. The company pays an annual dividend of $0.56 per share, yielding 1.17%. Since the beginning of the year, PulteGroup, Inc. (NYSE: PHM) delivered a 13.4% return to shareholders.
A total of 34 hedge funds tracked by Insider Monkey have positions in PulteGroup, as of Q2 2021, The total value of these stakes is $948.5 million.
“The Beachbody Company is an American fitness and media company that specializes in community-based in-home fitness” – Wealth Training Company
Regarding services, The Beachbody Company (NYSE: BODY) was also another area where David Tepper snapped up stocks
The Beachbody Company is an American fitness and media company that specializes in community-based in-home fitness. The company stands third on the billionaire David Tepper’s newest stock picks. In Q2 2021, Appaloosa Management bought 2 million shares in The Beachbody Company valued at $20.8 million. The company currently accounts for 0.43% of the hedge fund’s 13F portfolio.
David Tepper snapped up stocks in another construction company
Fourth on the list of the most bought stock was D.R. Horton, Inc. (NYSE: DHI), an American home construction company that mainly deals in the construction and sale of single-family housing.
Appaloosa Management stake in the company amounted to $103,407,000 or $103,407,000 of the portfolio.
David Tepper snapped up stocks in Paysafe (NYSE: PSFE), a UK online payment company
Paysafe Limited ranked fifth on billionaire David Tepper’s latest stock picks. Paysafe is a UK online payments company that provides payment solutions to its consumers in over 40 countries.
Appaloosa Management bought 10 million shares in Paysafe Limited (NYSE: PSFE) in Q1 2021. As of Q2 2021, the hedge fund owns 8.5 million shares in the company, valued at $102.9 million. The company represents 2.13% of the fund’s 13F portfolio strong position in the rapidly growing iGaming market in the US In Q2 2021, Paysafe Limited (NYSE: PSFE) reported revenue of $384.3 million, showcasing a 12.7% year-over-year growth.
David Tepper snapped up stocks in an array of companies in the second quarter, according to the latest filings.
Reading between the lines, David Tepper thinks the best bargains could be in the rear mirror as the melt-up in assets gets underway.
