Top Picks of Billionaire David Tepper’s Appaloosa Management Deliver Strong Performance

#2 Alphabet Inc (NASDAQ:GOOG)

– Shares Owned by Appaloosa Management LP (as of December 31): 536.15 million

– Value of Holding (as of December 31): $406.87 million

Appaloosa Management LP increased its stake in Alphabet Inc (NASDAQ:GOOG) by 188% during the fourth quarter, which helped the company jump eight spots quarter-over-quarter and become the fund’s second-largest position at the end of December. Alphabet Inc (NASDAQ:GOOG)’s stock has been largely range-bound this year and is currently trading down by 6% year-to-date. The company is expected to report its first quarter numbers this week and analysts project it to report EPS of $7.95 on revenue of $20.34 billion. For the same quarter last year, the company had reported EPS of $6.88 on revenue of $17.26 billion. On April 14, Goldman Sachs analyst Heather Bellini released a note to her client in which she reiterated her ‘Buy’ rating on Alphabet Inc’s stock and set a price target of $890 on it. In her note, Ms. Bellini also stated that mobile and YouTube will continue to be the growth drivers for the company and its ad revenue for the quarter could come at $14.7 billion, above the consensus estimate of $14.4 billion. Barry Dargan‘s Intermede Investment Partners increased its stake in Alphabet by 42% to 69,079 shares during the first quarter.

#1 General Motors Company (NYSE:GM)

– Shares Owned by Appaloosa Management LP (as of December 31): 12.58 million

– Value of Holding (as of December 31): $428.02 million

After reducing its stake in General Motors Company (NYSE:GM) by 32% during the third quarter, Appaloosa Management LP again brought its holding in the company down by 3% during the fourth quarter. However, General Motors Company (NYSE:GM) still ended up being the fund’s top stock pick while entering 2016. Though shares of General Motors Company have dropped by 10% so far this year, this decline has pushed the stock’s dividend yield to almost 5%. Most automotive analysts who track the company feel that its stock, currently trading at 5.6 times its 2016 earnings and 3.4 times its free cash flow, is excessively cheap. Moreover, with the company increasing its focus on mass=produced electric cars, some analysts project General Motors Company’s stock to start a major bull run soon. For the first quarter of 2016, General Motors Company posted adjusted EPS of $1.26, higher than the consensus estimate of $1.01, while the revenue of $37.3 billion, topped the expectations of $35.75 billion. Hedge funds that boosted their holdings in the company during the first quarter included Ray Carroll’s Breton Hill Capital, which increased its stake by 11% to 275,781 shares.

Disclosure: None