Appaloosa Management LP is a New Jersey-based employee-owned hedge fund co-founded by billionaire David Tepper in 1993. The hedge fund’s main operation is to manage separate client-focused fixed income and balanced portfolios, which together were worth $5.70 billion as of March 31. Tepper’s fund has generated annual compounded returns of 30% since its inception and Tepper himself attracted a lot of attention in 2009 when he became the highest-paid hedge fund manager of that year after providing his investors a 120% return after fees. The latest 13F filing for the fund indicates that it maintains a diversified portfolio, having 26.4o% exposure to the consumer cyclical sector, 16.48% to the technology sector, and 11.99% to the transportation sector. In this article we will cover the following four mid-cap stocks that Appaloosa Management held at the end of the latest reporting quarter, which are Goodyear Tire & Rubber Company (NADAQ:GT), Whirlpool Corp. (NYSE:WHR), Huntsman Corporation (NYSE:HUN) and Masco Corporation (NYSE:MAS).
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Tepper reported selling 2.45% of his equity position in Goodyear Tire & Rubber Company (NADAQ:GT) during the first quarter, ending the quarter with 9.99 million shares valued at $270.46 million. The tire manufacturer’s stock has been on a strong uptrend throughout the last few months, increasing by nearly 12% in 2015, as analysts have been positively raising the company’s earnings estimates for the year. In spite of this, the stock still looks quite affordable and attractive as Goodyear Tire & Rubber Company has a forward price-earnings ratio of 10.36, while the industry forward P/E is estimated at 13.54. Alexander Roepers’ Atlantic Investment Management and John W. Moon’s Moon Capital both made large additions to their equity stakes in Goodyear Tire & Rubber Company (NADAQ:GT) during the first quarter.
Appaloosa Management also sold off 33% of its position in Whirlpool Corp. (NYSE:WHR), remaining with 1.13 million shares valued at $228.79 million. Tepper’s sell-off might have been triggered by the disappointing performance of the stock at the beginning of the year. The global manufacturer of home appliances missed earnings estimates for the first quarter due to the strong U.S. dollar and falling demand, generating adjusted earnings per share of $2.14 as opposed to the Zacks Consensus Estimate of $2.49 per share. However, despite the fact that Whirlpool’s shares are down by nearly 3% during the current year, the stock has been on an uptrend lately, which might represent a good buying opportunity for investors seeking to enter at a down moment. Ken Heebner’s Capital Growth Management and Edgar Wachenheim’s Greenhaven Associates are among the funds that increased their equity holdings in Whirlpool Corp. (NYSE:WHR) during the first quarter.
Tepper did increase his position in Huntsman Corporation (NYSE:HUN) by 32%, lifting his overall stake to 8.08 million shares valued at $179.2 million at the end of the first quarter. Huntsman Corporation’s management recently announced that the company generated revenues of $2.59 billion and adjusted EBITDA of $285 million for the first quarter of 2015. The company’s President and CEO, Peter R. Huntsman, declared that he was quite pleased with the strong earnings Huntsman Corporation (NYSE:HUN) generated and believes the future growth prospects are relatively bright. Since the stock is currently trading at the same price as at the beginning of the year, the upcoming weeks might represent a good buying opportunity for investors interested in the chemicals sector. Dinakar Singh’s TPG-AXON Management is one the largest equity holders in Huntsman Corporation.
Tepper sold slightly more than 6% of his equity stake in Masco Corporation (NYSE:MAS), ending the quarter with 4.31 million shares valued at $115.10 million. Masco Corporation missed analysts’ estimates by generating net sales of $2.02 billion compared to the Zacks Consensus Estimate of $2.04 billion. Nevertheless, the revenues generated by the company during the quarter increased by 3% year-over-year, which signifies that the company is on the right path. The stock has risen by almost 8% since the beginning of the year, suggesting that the company remains an attractive investment despite generating the lower-than-expected results. David Cohen and Harold Levy’s Iridian Asset Management remains bullish on Masco Corporation (NYSE:MAS), adding to its holdings in this company during the first quarter.
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