Billionaire David Tepper’s Latest Moves On GM, Apple, Nike, More

Page 2 of 2

Tepper does not do a lot of options trading, which makes his new Nike Inc (NYSE:NKE) position a rarity (and quite intriquing). Tepper’s 13F revealed a position of put options underlying 359,500 shares of the iconic sports apparel and equipment company, which has enjoyed a fairly steady run-up over the past three years which has pushed its P/E over 30 and pulled its dividend yield under 1%. On the other hand, Nike Inc (NYSE:NKE) sports low debt and has been consistently growing earnings, with strong global sales growth, led by China. Dicks Sporting Goods Inc (NYSE:DKS) reported weak earnings yesterday, which put some downward pressure on Nike’s shares, leaving them relatively flat for the fourth quarter. Lansdowne Partners and Lone Pine Capital are two firms we track which don’t agree with Tepper’s stance and are long Nike Inc (NYSE:NKE).

Follow Nike Inc. (NYSE:NKE)

Lastly, Southwest Airlines Co (NYSE:LUV) was one of the new additions to Tepper’s portfolio during the third quarter, and the largest of the bunch. The 1.64 million-share holding is just the latest bet by Tepper on the airline and travel industries, with the billionaire also invested in Priceline Group Inc (NASDAQ:PCLN), Delta Air Lines, Inc. (NYSE:DAL), JetBlue Airways Corporation (NASDAQ:JBLU), United Continental Holdings Inc (NYSE:UAL), and now Expedia Inc (NASDAQ:EXPE), another new pick. As international airlines are being stung by the U.S dollar, Southwest Airlines Co (NYSE:LUV)’s makes for a better pure play on the industry tailwinds, namely lower fuel costs, as it operates primarily in the U.S. After dipping to its 2015 low right around the mid-point of the year, shares have rallied by over 40%, and that rally could continue, with Southwest coming off a very strong third quarter in which operating income rose by just under 100% year-over-year. Southwest Airlines Co (NYSE:LUV) is also held in the portfolios of elite investors Ken Griffin and Zach Schreiber, among others.

Follow Southwest Airlines Co (NYSE:LUV)

Disclosure: None

Page 2 of 2