Billionaire David Tepper Doesn’t Like Most Stocks But He Likes These 5

In this article, we will discuss billionaire David Tepper doesn’t like most stocks but he likes these 5. If you want to explore similar stocks, you can also take a look at Billionaire David Tepper Doesn’t Like Most Stocks But He Likes These 12.

5. Alibaba Group Holding Limited (NYSE:BABA)

Value of Appaloosa Management LP’s 13F Position: $372.99 million
Number of Hedge Fund Shareholders: 112

Alibaba Group Holding Limited (NYSE:BABA) is another company that Tepper has often turned to for getting exposure to China’s massive internet sector. Appaloosa Monument started investing in Alibaba Group Holding Limited (NYSE:BABA) in 2014.

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4. Amazon.com, Inc. (NASDAQ:AMZN)

Value of Appaloosa Management LP’s 13F Position: $412.26 million
Number of Hedge Fund Shareholders: 278

Appaloosa Management LP holds $412.26 million worth of stakes in Amazon.com, Inc. (NASDAQ:AMZN), accounting for 7.64% of its portfolio.

Diamond Hill Capital shared its thoughts on Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2023 investor letter:

“Among our top contributors were insurance company American International Group (AIG), auto retailer CarMax and global online retailer Amazon.com, Inc. (NASDAQ:AMZN).

Amazon’s management team has been working to improve retail profitability, and Q1 results showed progress. In the case of Amazon’s web services (AWS), the market has shifted its focus from where growth will bottom in the near term to how AI can help accelerate the adoption of public cloud services in the future. We believe Amazon’s competitive advantages will continue to grow and that the business has the potential to grow faster than the overall economy in the coming years.”

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3. Microsoft Corporation (NASDAQ:MSFT)

Value of Appaloosa Management LP’s 13F Position: $422.27 million
Number of Hedge Fund Shareholders: 300

Microsoft Corporation (NASDAQ:MSFT) was a popular stock among hedge funds in the second quarter of 2023, according to Insider Monkey’s database of 910 hedge funds. The database revealed that 300 hedge funds had a stake in the company in that quarter.

Here is what ClearBridge Investments said about Microsoft Corporation (NASDAQ:MSFT) in its Q2 2023 investor letter:

“We initiated a small position in Microsoft Corporation (NASDAQ:MSFT) during the quarter, which may seem surprising given our concerns about index concentration. However, we seized the opportunity on a compelling entry point below our business value estimate, due to an anticipated acceleration of demand for Microsoft’s Azure cloud business and incremental revenues from integration of Microsoft’s AI Copilot program into its office platform. We believe this could support double-digit growth, while simultaneously solidifying Microsoft’s competitive position as an AI winner. Even as a small position, we believe Microsoft provides a large portfolio construction benefit given low correlation to the rest of the portfolio.”

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2. Meta Platforms, Inc. (NASDAQ:META)

Value of Appaloosa Management LP’s 13F Position: $431.19 million
Number of Hedge Fund Shareholders: 225 

Meta Platforms, Inc. (NASDAQ:META) is the second biggest stock in billionaire David Tepper’s portfolio. The hedge fund holds stakes worth $431.19 million in Meta Platforms, Inc. (NASDAQ:META), accounting for 8% of its portfolio.

Artisan Partners made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q2 2023 investor letter:

“Our best performing stocks this quarter were Meta Platforms, Inc. (NASDAQ:META), Alphabet and Heidelberg Materials. Meta was the largest contributor to performance. Its shares have almost fully recovered from last year’s declines, rising 35% during the quarter and 138% YTD. During the quarter, the company reported earnings that showed a return to growth and healthy user engagement metrics. Most importantly, profitability appears to have stabilized and is poised to improve as significant cost reduction actions implemented over the past six months begin to have an impact. Separate from fundamental performance, there is excitement over AI’s potential to help the company’s business. While Meta’s technology prowess and massively scaled media platform certainly position the company to take advantage of AI, we believe it’s far too early to estimate any discrete tangible benefits. Overall, we view AI as one of several drivers that will contribute to Meta’s continued growth.”

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1. NVIDIA Corporation (NASDAQ:NVDA)

Value of Appaloosa Management LP’s 13F Position: $431.48 million
Number of Hedge Fund Shareholders: 175

Appaloosa Management bolstered its stake in NVIDIA Corporation (NASDAQ:NVDA) to $431.48 million in the second quarter of 2023 from $41 million in the first quarter.

Harding Loevner made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2023 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) has been the biggest beneficiary this year in terms of its stock run and projected revenue gains. More companies- including, perhaps, some not yet in existence-will certainly join the ranks over time.…” (Click here to read the full text)

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Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily newsletter to get  the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out our articles on Ray Dalio on Potential US-China War and Rise of China and Ken Fisher Portfolio: 15 Biggest Small-Cap Positions.