Billionaire David Tepper Honed In On These 6 Stocks

Tepper’s biggest purchase during the second quarter was T-Mobile US, Inc. (NASDAQ:TMUS). Tepper boosted his stake in TMUS by 666% bringing it to over $600 million. TMUS shares returned 9.8% since the end of the second quarter.

The fourth largest position in Appaloosa’s 13F portfolio was another media giant, Facebook Inc (NASDAQ:FB). David Tepper had more than $500 million invested in FB shares, though he cut his position prematurely by 7% as the stock returned 20.8% since the end of the second quarter. We believe Facebook is on its way to become a trillion dollar market cap stock as around 2 billion people provide free content, personal data, and consume ads on the platform.

The fifth and sixth positions in Tepper’s portfolio are very close in position size. Tepper had $482 million invested in Micron (MU) and $472 million invested in Alphabet Inc. (GOOG). During the second quarter Tepper cut his Alphabet Inc stake by 7% and increased his MU stake by 6%. That’s why GOOG ranked one spot below MU in Tepper’s portfolio. The seventh largest position in Tepper’s portfolio was $200 million smaller than Tepper’s GOOG stake (see Tepper’s entire portfolio here). Micron is one of Tepper’s old favorite stock picks. Tepper made a ton of money from his Micron bets when the stock was trading below $9. Unfortunately for Tepper Micron underperformed GOOG by more than 22 percentage points since the end of June.

Overall, Tepper’s top stock picks look promising. They outperformed the S&P 500 Index by 3.3 percentage points since the end of Q2.

Disclosure: None. This article is originally published at Insider Monkey.