Billionaire David Tepper’s 10 Small and Midcap Stock Picks with Huge Upside Potential

9. United Airline Holdings, Inc. (NASDAQ:UAL)

Appaloosa Management LP’s Stake: $52 Million  

United Airline Holdings, Inc. (NASDAQ:UAL) is a constant feature in the 13F portfolio of Appaloosa Management LP. The fund first disclosed a stake in the company back in the fourth quarter of 2010. This holding comprised 3.8 million shares. It was increased to 10 million shares by the third quarter of 2012. By the end of 2015, this stake had been trimmed down to just 600,000 shares and was sold off completely in the coming months. Small stakes were purchased and sold off in 2016 and 2018. The present holding, purchased in the second quarter of 2025, comprised 550,000 shares and was reduced to 462,000 shares in the third quarter of 2025. Filings for the fourth quarter of 2025 show that the fund owns 465,000 shares in the firm.

United Airline Holdings, Inc. (NASDAQ:UAL) is undergoing a multi-year transformation that is reaching its full scale in 2026. Hedge funds are bullish about the results of this transformation plan. For example, United has successfully shifted its model toward the high-margin premium leisure and business traveler. In FY 2025, premium revenue grew 11%, significantly outperforming the industry average. United is also taking delivery of over 100 narrowbody aircraft and 20 Boeing 787-9 Dreamliners in 2026. These new planes are 20–25% more fuel-efficient, which hedge funds view as a critical hedge against the current energy spike. Institutional investors are also rewarding United for leveraging technology to leapfrog competitors like Delta. In early 2026, United began the fleet-wide rollout of SpaceX’s Starlink, offering free, high-speed internet.