A $5 Billion Fund Is Holding These Stocks Now

David Tepper, of Appaloosa Management, has made billions for himself and those lucky enough to have invested in his hedge fund.  According to his most recent 13F filing, he has slightly underperformed the S&P 500 (NYSE:SPY) since his previous 13F was filed in the 4th quarter of 2010.  His current stock holdings are as follows:

Company Exchange & Ticker $ Value Absolute Return Relative Return Weight
Hewlett Packard (NYSE:HPQ) 157,000,000 16% 1% 15%
Cisco Systems (NASDAQ:CSCO) 132,000,000 -15% -29% 13%
Medtronic, Inc (NYSE:MDT) 47,000,000 20% 5% 4%
Semiconductor Holders (NYSE:SMH) 47,000,000 31% 16% 4%
Applied Materials, Inc (NASDAQ:AMAT) 44,000,000 38% 23% 4%
International Paper (NYSE:IP) 42,000,000 36% 22% 4%
United Healthcare (NYSE:UNH) 41,000,000 21% 6% 4%
WellPoint Inc. (NYSE:WLP) 34,000,000 15% 1% 3%
KLA-Tencor Corp. (NASDAQ:KLAC) 22,000,000 34% 19% 2%
Covidien plc (NYSE:COV) 22,000,000 26% 12% 2%
Micron Technology Inc. (NASDAQ:MU) 142,000,000 41% 26% 13%
Dean Foods Co (NYSE:DF) 95,000,000 13% -2% 9%
United Continental Holdings Inc. (NYSE:UAL) 92,000,000 15% 0% 9%
General Motors Corp. (NYSE:GM) 51,000,000 -1% -16% 5%
The Hartford Financial Services Group (NYSE:HIG) 25,000,000 12% -2% 2%
JPMorgan Chase & Co. (NYSE:JPM) 23,000,000 10% -5% 2%
Manitowoc Company Inc (NYSE:MTW) 16,000,000 46% 32% 2%
Mueller Water Products Inc. (NYSE:MWA) 10,000,000 -4% -19% 1%
Flagstar Bacnorp Inc (NYSE:FBC) 5,000,000 4% -11% 0%
The Kroger Co. (NYSE:KR) 3,000,000 2% -13% 0%
Safeway Inc (NYSE:SWY) 3,000,000 -4% -19% 0%
Supervalue Inc (NYSE:SVU) 3,000,000 -14% -29% 0%

The S&P 500 (NYSE:SPY) returned 14.65% since September 30, 2010. David Tepper’s portfolio has had a weighted average return of 17.41%. Tepper therefore has generated some alpha for his investors.

Despite having outperformed the S&P 500, his holding in Cisco (NASDAQ:CSCO) has had a disproportionately deleterious effect on his overall performance.

The median size of his holdings is $37,500,000 versus a mean of $48,000,000; accordingly, his portfolio is weighted towards a few large investments and many more smaller stakes. This means that his portfolio is rather risky more risky than the market as a whole. But, despite the extra risk, he has apparently delivered outsized returns for his investors.

To find out some more about the companies that comprise his portfolio, see below:

  • Hewlett Packard (NYSE:HPQ): Hewlett-Packard Company provides imaging and printing systems, computing systems, and information technology services for business and home.  The Company’s products include laser and inkjet printers, scanners, copiers and faxes, personal computers, workstations, storage solutions, and other computing and printing systems.  Hewlett-Packard sells its products worldwide.
  • Cisco Systems (NASDAQ:CSCO): Cisco Systems, Inc. supplies data networking products for the Internet.  The Company’s Internet Protocol-based networking solutions are installed at corporations, public institutions and telecommunication companies worldwide.  The Company’s solutions transport data, voice, and video within buildings, across campuses, and around the world.
  • Medtronic, Inc (NYSE:MDT):  Medtronic, Inc. develops therapeutic and diagnostic medical products.  The Company’s principal products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, heart failure management, heart valve replacement, malignant and non-malignant pain, and movement disorders.  Medtronic’s products are sold worldwide.
  • Semiconductor Holders (NYSE:SMH): Semiconductor HOLDRs Trust issues depository receipts called Semiconducts HOLDRs.  The Trust will hold shares of common stock issued by companies that develop, manufacture and market integrated circuitry and other products made from semiconductors which allow for increased speed and functionality in components for computers and other electronic devices.
  • Applied Materials, Inc (NASDAQ:AMAT):  Applied Materials, Inc. develops, manufactures, markets, and services semiconductor wafer fabrication equipment and related spare parts for the worldwide semiconductor industry.  The Company’s customers include semiconductor wafer and integrated circuit manufacturers, flat panel liquid crystal displays, sold photovoltaic cells and modeuls and other electronic devices manufacturers.
  • International Paper (NYSE:IP):  International Paper Company produces and distributes printing paper, packaging, forest products, and chemical products.  The Company operates specialty businesses in global markets as well as a broadly based distribution network.  International Paper exports its products worldwide.
  • United Healthcare (NYSE:UNH):  UnitedHealth Group Incorporated owns and manages organized health systems in the United States and internationally.  The Company provides employers products and resources to plan and administer employee benefit programs.  UnitedHealth also serves the health needs of older Americans, provides specialized care services, and provides health care information and research to providers and payers.
  • WellPoint Inc. (NYSE:WLP):  WellPoint Inc. is a health benefits company.  The Company provides health benefits, dental and vision benefits, pharmacy benefits, life insurance, and life and disability insurance benefits.  WellPoint operations include Blue Cross and Blue Shield plans.
  • KLA-Tencor Corp. (NASDAQ:KLAC):  KLA-Tencor Corporation manufactures yield management and process monitoring systems for the semiconductor industry.  The Company’s systems are used to analyze product and process quality at critical steps in the manufacture of circuits and provide feedback so that fabrication probems can be identified.  KLA-Tencor operates sales, service, and application centers worldwide.
  • Covidien plc (NYSE:COV):  Covidien PLC is a global healthcare products company.  The Company develops, manufactures and distributes a diverse range of medical devices and supplies, diagnostics imaging agents, pharmaceuticals and other healthcare products for use in clinical and home settings.
  • Micron Technology Inc. (NASDAQ:MU):  Micro Technology, Inc., through its subsidiaries, manufactures and markets dynamic random access memory chips (DRAMs), very fast static random access memory chips (SRAMs), Flash Memory, other semiconductor components, and memory modules.
  • Dean Foods Co (NYSE:DF):  Dean Foods Company is a food and beverage company that produces a full line of Company-branded and private label dairy and dairy-related products.  The Company provides products such as milk and milk-based beverages, ice cream, half and half, whipping cream, sour cream, cottage cheese, yogurt, dips, and soy milk.  Dean Foods also supplies pickles, juice, juice drinks, and water.
  • United Continental Holdings Inc. (NYSE:UAL):  United Continental Holdings, Inc. is an airline holding company.  The Company owns and operates airlines that transports persons, property, and mail throughout the United States and abroad.
  • General Motors Corp. (NYSE:GM):  General Motors Co. manufactures and markets new cars and trucks.  The Company offers features for special needs drivers, OnStar vehicle protection, service, parts, accessories, maintenance, XM satellite radio, features for commercial owners, and more.  General Motors offers its vehicles and services worldwide.
  • The Hartford Financial Services Group (NYSE:HIG):  The Hartford Financial Services Group, Inc. provides a range of insurance products.  The Company’s products include property and casualty insurance, annuities, life insurance, investment services, and group insurance.  Hartford Financial operates around the world.
  • JPMorgan Chase & Co. (NYSE:JPM):  JPMorgan Chase & Co. provides global financial services and retail banking.  The Company provides services such as investment banking, treasury and securities services, asset management, private banking, card member services, commercial banking, and home finance.  JP Morgan Chase serves businesses enterprises, institutions, and individuals.
  • Manitowoc Company Inc (NYSE:MTW):  The Manitowoc Company, Inc. is a diversified industrial manufacturer of cranes and related products and foodservice equipment.  The Company’s products include lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks as well as ice making machines, refrigerators, and freezers.
  • Mueller Water Products Inc. (NYSE:MWA):  Mueller Water Products, Inc. manufactures a broad range of water infrastructure and flow control products for use in water distribution networks, water and wastewater treatment facilities, gas distribution systems and fire protection piping systems.  The Company’s product portfolio includes engineered valves, hydrants, pipe fittings and ductile iron pipe.
  • Flagstar Bacnorp Inc (NYSE:FBC):  Flagstar Bancorp, Inc. is the holding company for Flagstar Bank, FSB.  The Bank attracts deposits from the general public and originates or acquires residential mortgage loans.  Flagstar also originates consumer, commercial real estate, and non-real estate commercial loans and it operates predominantly in Michigan and Indiana, as well as throughout the United States.
  • The Kroger Co. (NYSE:KR):  The Kroger Co. operates supermarkets and convenience stores in the United States.  The Company also manufactures and processes some of the foods that its supermarkets sell.
  • Safeway Inc (NYSE:SWY):  Safeway Inc. operates a retail food and drug chain in the US and Canada.  The Company also has a network of distribution, manufacturing, and food processing facilities.  Safeway’s retail operations are located in California, Oregon, Washington, Alaska, Colorado, Arizona, Texas, the Chicago metropolitan area and the Mid-Atlantic region, British Columbia, Alberta and Manitoba/Saskatachewan.
  • Supervalu Inc. (NYSE:SVU):  SUPERVALU Inc. operates a chain of supermarkets and pharmacies primarily in the United States.  The Company also provides supply chain services, which includes wholesale distribution and related logistics support services.

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