David Tepper
FOLLOWAppaloosa Management
One of the greatest hedge fund track records ever, probability-weighted framework aligns with floor price thinking, and now heavily positioned in AI/tech stocks.
Distressed & Turnaround Specialists
Current Portfolio
2025-Q4 · 39 positions · Filed 2026-02-17
| # | Ticker | Value | Weight |
|---|---|---|---|
| 1 | ALIBABA GROUP | $753.1M | 10.9% Est. ~9.8% of total Conviction |
| 2 | GOOG | $560.7M | 8.1% Est. ~7.3% of total |
| 3 | AMZN | $503.0M | 7.3% Est. ~6.5% of total |
| 4 | MU | $428.1M | 6.2% Est. ~5.6% of total |
| 5 | META | $396.1M | 5.7% Est. ~5.1% of total |
| 6 | TAIWAN SEMICONDUCTOR | $343.4M | 5.0% Est. ~4.5% of total |
| 7 | NVDA | $317.1M | 4.6% Est. ~4.1% of total |
| 8 | WHR | $282.1M | 4.1% Est. ~3.7% of total |
| 9 | NRG | $261.2M | 3.8% Est. ~3.4% of total |
| 10 | MSFT | $241.8M | 3.5% Est. ~3.1% of total |
| 11 | AAL | $216.9M | 3.1% Est. ~2.8% of total |
| 12 | PDD | $201.3M | 2.9% Est. ~2.6% of total |
| 13 | QCOM | $195.9M | 2.8% Est. ~2.5% of total |
| 14 | ISHARES INC | $182.3M | 2.6% Est. ~2.4% of total |
| 15 | KRANESHARES TRUST | $161.7M | 2.3% Est. ~2.1% of total |
| 16 | VST | $152.5M | 2.2% Est. ~2.0% of total |
| 17 | UBER | $151.2M | 2.2% Est. ~2.0% of total |
| 18 | GLW | $137.5M | 2.0% Est. ~1.8% of total |
| 19 | D18190898 | $121.5M | 1.8% Est. ~1.6% of total |
| 20 | JDCMF | $119.3M | 1.7% Est. ~1.5% of total |
Allocation
Recent Changes
2025-Q4 vs 2025-Q3Portfolio -6.2%
| Action | Ticker | Shares Change | Value Change |
|---|---|---|---|
| NEW | ISHARES INC | +1.9M | +$182.3M |
| NEW | BALL | +1.2M | +$63.6M |
| SOLD | FISV | -925K(-100%) | $-119.3M |
| SOLD | TRUIST FINL | -1.4M(-100%) | $-63.4M |
| SOLD | CZR | -2.1M(-100%) | $-56.8M |
| SOLD | KEY-PL | -2.0M(-100%) | $-37.8M |
| SOLD | CITIZENS FINL | -600K(-100%) | $-31.9M |
| SOLD | COMERICA INC | -463K(-100%) | $-31.7M |
| SOLD | BSQKZ | -370K(-100%) | $-26.7M |
| SOLD | WAL-PA | -195K(-100%) | $-16.9M |
| SOLD | ZIONS BANCORPORATION | -285K(-100%) | $-16.1M |
| INCREASED | MU | +1.3M(+250%) | +$415.8M Est. bought $181.6–$294.37 |
| INCREASED | GOOG | +399K(+29%) | +$222.8M Est. bought $237.49–$323.64 |
| INCREASED | META | +230K(+62%) | +$124.3M Est. bought $589.15–$751.67 |
| INCREASED | AAL | +4.9M(+53%) | +$112.9M Est. bought $11.27–$16.26 |
| INCREASED | OC | +789K(+488%) | +$83.5M |
| INCREASED | MOHAWK INDS | +514K(+318%) | +$53.0M |
| INCREASED | TAIWAN SEMICONDUCTOR | +70K(+7%) | +$47.3M |
| INCREASED | LRCX | +55K(+15%) | +$23.2M Est. bought $131.37–$178.07 |
| INCREASED | UNITED AIRLS | +3K(+1%) | +$7.4M |
| INCREASED | MPLXP | +93K(+17%) | +$6.8M |
| INCREASED | DAL | +13K(+3%) | +$6.7M |
| INCREASED | MSFT | +38K(+8%) | +$2.3M Est. bought $472.12–$542.07 |
| DECREASED | ALIBABA GROUP | -1.3M(-20%) | $-399.7M |
| DECREASED | WHR | -1.6M(-29%) | $-150.2M |
| DECREASED | KRANESHARES TRUST | -2.6M(-36%) | $-149.1M |
| DECREASED | JDCMF | -2.1M(-33%) | $-98.4M |
| DECREASED | VST | -300K(-24%) | $-91.5M |
| DECREASED | UBER | -557K(-23%) | $-84.6M |
| DECREASED | AMD | -625K(-66%) | $-84.1M |
| DECREASED | BAIDF | -470K(-45%) | $-62.6M |
| DECREASED | LYFT | -1.8M(-32%) | $-49.6M |
| DECREASED | ENERGY TRANSFER | -2.8M(-56%) | $-48.9M |
| DECREASED | AMZN | -321K(-13%) | $-45.9M |
| DECREASED | NRG | -230K(-12%) | $-41.7M |
| DECREASED | NVDA | -200K(-11%) | $-37.5M |
| DECREASED | PDD | -25K(-1%) | $-36.6M |
| DECREASED | GOODYEAR TIRE | -2.6M(-51%) | $-16.5M |
| DECREASED | D18190898 | -640K(-17%) | $-12.7M |
| DECREASED | QCOM | -100K(-8%) | $-11.3M |
| DECREASED | IQVIA HLDGS | -5K(-2%) | +$9.0M |
| DECREASED | RTX | -10K(-2%) | +$6.4M |
| DECREASED | LHX | -5K(-2%) | $-5.0M |
| DECREASED | N07059210 | -2K(-2%) | +$4.9M |
| DECREASED | UNH | -4K(-2%) | $-4.2M |
| DECREASED | GLW | -55K(-3%) | +$4.2M |
| DECREASED | ISHARES TR | -23K(-2%) | $-4.0M |
Score Breakdown
Investment Philosophy & Portfolio Style
Philosophy
Tepper is a contrarian macro investor who specializes in buying assets at moments of extreme distress and pessimism. His core philosophy: 'The key to investing is not to predict the future, but to figure out what's priced in and bet when the odds are heavily in your favor.' He looks for situations where the market is pricing in catastrophe but where the probability of that catastrophe is much lower than the market implies. Famous for his 'probability-weighted outcome' framework — he doesn't just look at upside/downside but weights them by probability. Comfortable making massive concentrated bets (e.g., putting 25-30% of his fund into bank stocks in early 2009). Not a buy-and-hold investor — will trade actively around positions. Also does event-driven, merger arbitrage, and macro plays. Uses both equity and credit markets.
Portfolio Style
Moderately concentrated (typically 15-25 public equity positions visible in 13F), but with significant credit and macro overlays not visible in equity filings. Willing to concentrate heavily when conviction is high. Recent 13F filings show a strong tilt toward large-cap technology stocks — Alphabet, Amazon, Meta, Microsoft, Nvidia, and Alibaba have been among top holdings in 2024-2025. Also holds energy, financial, and Chinese tech names. Has been notably bullish on AI/technology in recent years, calling it a generational investment theme. Portfolio turnover is moderate — he trades but also holds core positions for multiple quarters.
Background
David Tepper (born 1957) is one of the most successful hedge fund managers in history. Grew up in a middle-class Pittsburgh family, earned MBA from Carnegie Mellon (1982), worked at Goldman Sachs in the high-yield/distressed debt group under Michael Mortara. Left Goldman after being passed over for partner and founded Appaloosa Management in 1993 with $57M. Built it into one of the most profitable hedge funds ever, with personal net worth estimated at $20B+ as of 2025, making him one of the wealthiest hedge fund managers alive. Owns the Carolina Panthers NFL team (bought 2018 for $2.3B). Converted Appaloosa to a family office in 2019, returning outside capital. Known for his aggressive, contrarian style and willingness to make massive concentrated bets at moments of maximum fear.
Track Record
Exceptional. Appaloosa returned approximately 25-30% annualized from 1993-2019, making it one of the best-performing hedge funds of all time. Key trades: (1) Made $7B in 2009 by loading up on bank stocks and distressed financial debt when markets feared nationalization — Tepper bought Bank of America, Citigroup, and AIG at rock-bottom prices and rode the recovery. This was one of the greatest single-year returns in hedge fund history. (2) Made billions in 2001 buying Enron and WorldCom debt at 20 cents on the dollar. (3) Earned 42% in 2013 on a bet that the Fed would keep rates low. (4) Strong performance in 2023-2024 driven by large technology positions (Nvidia, Meta, Alphabet). Personal wealth grew from $57M (1993) to $20B+ (2025), confirming the durability of his returns.
Notable Holdings
Recent 13F (2024-2025): Alphabet (GOOGL), Amazon (AMZN), Meta (META), Microsoft (MSFT), Nvidia (NVDA), Alibaba (BABA), Uber (UBER), Vistra Energy (VST), energy names. Historical: Bank of America, Citigroup, AIG (2009 crisis trade), various distressed debt positions, airline stocks. Has been a significant buyer of AI-related technology stocks since 2023.
Transparency & Integrity
Transparency(Score: 5/10)
Moderate. Appaloosa filed 13F reports when managing outside capital, providing visibility into public equity positions. Since converting to a family office in 2019, 13F filings continue but represent only his personal capital. Tepper gives occasional interviews and speaks at conferences (e.g., CNBC, Ira Sohn) where he shares his macro views and sometimes specific positions. He is relatively candid about his investment philosophy and thought process. However, credit positions, shorts, and macro trades are not visible in public filings, meaning the 13F shows only a partial picture.
Integrity(Score: 7/10)
Good. Tepper has a reputation for being straightforward and honest, if blunt. He returned outside capital in 2019, which is a positive signal — he didn't continue extracting management fees when he didn't need to. Major philanthropy including $67M to Carnegie Mellon (business school renamed in his honor), significant gifts to education and community causes. No major scandals, SEC enforcement actions, or fraud allegations. The one criticism is that Appaloosa's fee structure was aggressive (typical 2/20 or higher), but performance justified it. His purchase of the Carolina Panthers was clean. He has been open about his mistakes (e.g., losing money on certain trades) and doesn't present himself as infallible.
Relevance to Us
Moderate-high relevance. Tepper's probability-weighted outcome framework resonates with our 'floor price' philosophy — both seek situations where the downside is limited relative to the upside. His willingness to buy when others panic is directly analogous to our approach of buying at the 'very safe price.' His recent heavy positioning in AI/technology stocks (Meta, Nvidia, Alphabet) shows awareness of the AI/AGI theme that is central to our thesis. Key differences: Tepper trades more actively than we would, uses credit and macro instruments we don't, and has a shorter average holding period. He is also a macro thinker rather than a pure bottom-up business analyst. But his general framework of 'what's priced in vs. what's likely' is highly compatible with our floor price methodology. His 13F is worth monitoring for ideas in the AI/tech space.