In this article, we will take a detailed look at Billionaire David Tepper’s Top 10 Stock Picks.
David Alan Tepper, born on September 11, 1957, is an American billionaire hedge fund manager, businessman, and sports team owner. He is the founder and president of Appaloosa Management, a global hedge fund based in Miami Beach, Florida. Beyond finance, Tepper owns the Carolina Panthers of the National Football League (NFL) and Charlotte FC of Major League Soccer (MLS). Tepper grew up in Pittsburgh, Pennsylvania, earning a bachelor’s degree in economics from the University of Pittsburgh in 1978. He later pursued a Master of Science in Industrial Administration (MSIA) from Carnegie Mellon University in 1982. His connection to the university remained strong, culminating in a $67 million donation in 2013, after which the Tepper School of Business was named in his honor.
Over his career, Tepper has accumulated numerous accolades, cementing his status as one of the most successful hedge fund managers in the world. In 2018, he secured third place on Forbes’ list of the highest-earning hedge fund managers with $1.5 billion in annual earnings. He was repeatedly listed among Forbes’ top 25 highest-earning hedge fund managers in 2013 and 2016. A 2010 New York magazine profile described Tepper as the object of “hero worship” within the financial industry, where one investor famously referred to him as “a golden god.” His aggressive and unfiltered approach earned him a unique reputation, with plans to eventually convert his hedge fund into a family office.
Outside of finance and sports ownership, Tepper’s career includes a series of formative positions that shaped his reputation and investment philosophy. After earning his economics degree, he worked as a credit analyst at Equibank in Pittsburgh before enrolling at Carnegie Mellon. Post-MBA, he joined Republic Steel’s treasury department in Ohio and then moved to Keystone Mutual Funds in Boston. In 1985, Goldman Sachs recruited him for its newly formed high-yield credit group in New York City. Tepper quickly rose to head trader within six months, playing a crucial role in the firm’s recovery after the 1987 stock market crash by purchasing bonds from weakened financial institutions. Known for his blunt market commentary, he advised against fear-driven investment decisions during economic turbulence, famously dismissing extreme market predictions and championing the adaptability of markets and people alike.
Appaloosa Management, founded by Tepper in early 1993 after leaving Goldman Sachs, has become synonymous with high-stakes investing in distressed companies and volatile markets. Based initially in Chatham, New Jersey, the firm was established as an employee-owned investment management company with a sharp focus on distressed debt. From its inception, Appaloosa Management has specialized in investing across public equity and fixed income markets on a global scale. The firm built a reputation for its bold, contrarian investment strategy, particularly in volatile and high-risk sectors.
Appaloosa Management quickly gained recognition, generating a 61% return in 2001 through distressed bond investments, and in 2005, pivoted to lucrative opportunities in S&P stocks. Tepper’s hedge fund became known for profiting from “dicier” companies, with notable gains from MCI, Mirant, Conseco, and Marconi. In 2009, Appaloosa made about $7 billion by purchasing distressed financial stocks like Bank of America at just $3 per share during the market crash, with $4 billion going directly to Tepper’s personal wealth, making him the top-earning hedge fund manager that year.
Throughout the 1990s, Appaloosa Management earned recognition as a niche junk bond investment boutique, distinguishing itself by targeting undervalued, distressed corporate debt that other investors tended to avoid. As the hedge fund industry evolved in the 2000s, so did Appaloosa’s role and reputation, becoming widely regarded as one of the premier hedge funds in the world, known for its aggressive, high-reward investment tactics. Its core strategy continued to focus on distressed securities, but it also expanded its portfolio to include opportunities in equities and other financial instruments, consistently generating strong returns through bold market bets.
As of its most recent 13F filing for the fourth quarter of 2024, Appaloosa Management’s top ten holdings account for 66.75% of this portfolio, which reflects the firm’s high-conviction, opportunistic investment strategy, a hallmark of David Tepper’s approach.
Our Methodology
We searched through Appaloosa Management’s Q4 2024 13F filings to identify the top stocks in its portfolio. The resultant stocks are then compiled in the ascending order of the fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Billionaire David Tepper’s Top 10 Stock Picks
10. Lyft, Inc. (NASDAQ:LYFT)
Number of Hedge Fund Holders as of Q4: 55
Appaloosa Management’s Equity Stake: $174.15 Million
Lyft, Inc. (NASDAQ:LYFT) is an American transportation company providing ride-hailing services, motorized scooters, and bicycle-sharing systems, with operations across the United States and select Canadian cities.
On February 11, 2025, Lyft, Inc. (NASDAQ:LYFT) announced its financial results for the fourth quarter and full year ending December 31, 2024, marking a significant milestone in its operational and financial history. CEO David Risher hailed 2024 as a “record-smashing” year for the company, highlighting its achievement of helping 44 million people connect to transportation options. CFO Erin Brewer echoed this optimism, celebrating a year of record Gross Bookings, significant margin expansion, Lyft’s first full year of GAAP profitability, and record cash flow generation.
Financially, Lyft, Inc. (NASDAQ:LYFT) delivered outstanding results for the fourth quarter. In Q4, Gross Bookings rose 15% year-over-year to $4.3 billion, while revenue increased by 27% to $1.6 billion. The company turned a profit with net income of $61.7 million, a sharp turnaround from a net loss of $(26.3) million in Q4 2023. Net income as a percentage of Gross Bookings improved to 1.4%, compared to a loss margin of (0.7)% in the prior year’s quarter. Adjusted EBITDA grew to $112.8 million from $66.6 million in Q4 2023.
Operationally, Lyft, Inc. (NASDAQ:LYFT) saw record-breaking ride volumes, with Q4 rides up 15% year-over-year to 219 million and full-year rides increasing 17% to 828 million. Lyft provided guidance for Q1 2025, projecting rides growth in the mid-teens year-over-year. Gross Bookings for the quarter are expected to increase approximately 10% to 14%, ranging from $4.05 billion to $4.20 billion, while Adjusted EBITDA is forecasted to land between $90 million and $95 million.
Lyft, Inc. (NASDAQ:LYFT) is one of Billionaire David Tepper’s top stock picks. During the December quarter in 2024, Appaloosa Management held 13.5 million shares in the company, with a total value of over $174 million. Hedge fund sentiment also increased; according to Insider Monkey’s database, 55 hedge funds held shares in the company by the end of Q4 with a combined stake of $1.08 billion, up from 51 funds in Q3.
9. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders as of Q4: 105
Appaloosa Management’s Equity Stake: $233.30 Million
Oracle Corporation (NYSE:ORCL) is a prominent American multinational computer technology company recognized for its leadership in database software, cloud computing infrastructure, and enterprise applications. Founded in 1977, the company has grown into a global technology powerhouse, now headquartered in Austin, Texas. Oracle’s products and services are integral to organizations around the world, providing the digital foundation to manage data, support business operations, and develop applications across a wide range of industries. Oracle is ninth in the list of David Tepper’s top stock picks, with Appaloosa Management holding 1.4 million shares in the company.
On March 10, 2025, Oracle Corporation (NYSE:ORCL) announced its financial results for the third quarter of fiscal year 2025, reporting sound growth across key business areas. The company posted a 20% year-over-year increase in earnings per share, reaching $1.02. Total revenue for the quarter rose to $14.1 billion, representing a 6% increase in U.S. dollars and 8% in constant currency. Over the past twelve months, Oracle generated an impressive $20.7 billion in operating cash flow and $5.8 billion in free cash flow, indicating the company’s robust financial health and operational efficiency.
CEO Safra Catz emphasized the company’s record-breaking sales achievements during the quarter, announcing that Oracle Corporation (NYSE:ORCL) signed over $48 billion in sales contracts. The company has secured cloud agreements with major global technology leaders, including OpenAI, xAI, Meta, NVIDIA, and AMD, which significantly strengthen Oracle’s positioning in the AI and cloud markets.
Oracle Corporation (NYSE:ORCL) also announced an increase in its quarterly cash dividend. The Board of Directors declared a dividend of $0.50 per share of outstanding common stock, a 25% rise from the previous quarterly dividend of $0.40. This increased dividend will be distributed to stockholders of record as of April 10, 2025, with the payment scheduled for April 23, 2025. This decision reflects Oracle’s confidence in its financial stability and long-term growth strategy, while delivering increased returns to its shareholders.
ClearBridge Value Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q1 2025 investor letter:
“We also exited enterprise software and cloud services company Oracle Corporation (NYSE:ORCL) as its strong performance in 2024 had rerated its stock higher and narrowed the gap between our assessment of share price and intrinsic business value. This, combined with the company’s relatively high correlation to other AI holdings that we have high conviction in led us to seize the opportunity to capture gains in the stock reinvest in other areas we feel have superior risk/return profiles.”