In this article, we will discuss: David Tepper Stock Portfolio: 10 Long-Term Stock Picks. For more stocks, you can head to David Tepper Stock Portfolio: 5 Long-Term Stock Picks.
David Tepper, the founder and President of Appaloosa Management, is one of the richest people in the world. According to Forbes Magazine, his net worth was $23.7 billion as of June 2026. His hedge fund had listed 13F holdings worth $5.9 billion as of the first quarter of 2026. This figure marked a notable drop over Q1 2025’s $8.3 billion.
However, while the holdings might have dropped, it doesn’t mean Tepper didn’t do well in 2025. He made it to Institutional Investor’s list of highest-earning hedge fund managers for the year. In this list, Tepper ranked 4th as he managed to bring in a cool $3.3 billion. As per the publication, the billionaire’s investments in Alibaba and NVIDIA were responsible for the earnings. Alibaba also features in our list, so you should scroll on below to find out just how long it has been in Appaloosa’s filings. The shares gained 80% between July and October but are down 9% over the past year and by 34% year-to-date.
The fourth quarter of 2025 also marked a pivotal shift in the fund’s investment strategy. During the previous quarter, it had taken new positions in a flurry of regional banks such as KeyCorp and Citizens Financial. However, the fourth quarter, and by extension Q1 2026, was all technology as the fund took a stake in memory chip manufacturer Micron. Insider Monkey’s data shows that Appaloosa disclosed a $562 million stake in Micron as part of its Q1 2026 13F filings.
Our Methodology
For this article, we selected stocks by combing through the 13F portfolio of Appaloosa Management at the end of the first quarter of 2026. We also provided hedge fund sentiment for each stock as of the first quarter of 2026, which was taken from Insider Monkey’s database of 1,022 hedge funds.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. NRG Energy, Inc. (NYSE:NRG)
Number of Hedge Fund Holdings in Q1 2026: 76
First Appeared In 13F Holdings: Q2 2017
Latest Stake: $253 million
NRG Energy, Inc. (NYSE:NRG) is an independent power production company. It first made an appearance in Appaloosa Management’s 13F holdings in the second quarter of 2017. Back then, the fund had held 1.2 million shares that were worth $21.5 million. As the third quarter closed, both the size and the value of the holding grew significantly. As Q3 ended, Appaloosa held 8.4 million shares that were worth $216 million. The jump came as the average price of the shares jumped to $23.65 during the quarter, over the previous quarter’s $16.77. Between 2019 and the second quarter of 2024, the fund held no shares of NRG Energy, Inc. (NYSE:NRG).
Morgan Stanley discussed the power producer’s shares on May 21st. It raised the share price target to $162 from $159 and kept an Equal Weight rating on the stock. NRG Energy, Inc. (NYSE:NRG) had reported its first-quarter earnings earlier in May. The results saw the firm grow its revenue to $10.26 billion from the year-ago figure of $8.59 billion. However, NRG Energy, Inc. (NYSE:NRG)’s earnings-per-share of $1.49 missed analyst estimates of $1.78.
9. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holdings in Q1 2026: 102
First Appeared In 13F Holdings: Q3 2014
Latest Stake: $434 million
Chinese technology conglomerate Alibaba Group Holding Limited (NYSE:BABA)’s shares are down by 7% over the past year and by 32% year-to-date. It first appeared in Appaloosa’s 13F holdings in the third quarter of 2014 when the fund held 725,000 shares, which were worth $64 million. However, the holding dropped to zero shares in the next quarter. The firm exited 2015’s second quarter with 1.3 million shares and held zero shares in the next quarter. It then held Alibaba Group Holding Limited (NYSE:BABA) shares from the second quarter of 2017 to the third quarter of 2018, exited in the fourth quarter, and then held 1.3 million shares in Q2 2019. The latest stake is worth $434 million.
Goldman Sachs discussed Alibaba Group Holding Limited (NYSE:BABA) on June 16th. It called it a preferred Chinese internet stock heading into the year’s second half. The bank’s opinion was based on an expected earnings recovery and Alibaba Group Holding Limited (NYSE:BABA)’s position in the Chinese cloud computing market. The firm was at the center of controversy earlier after the Pentagon tagged it for aiding China’s military.
8. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holdings in Q1 2026: 262
First Appeared In 13F Holdings: Q1 2014
Latest Stake: $249 million
Social media giant Meta Platforms, Inc. (NASDAQ:META) is another long-term David Tepper stock pick. It first appeared in his hedge fund’s holdings in the first quarter of 2014. It remained in the holdings for two more quarters. Then, Appaloosa held 1.6 million Meta Platforms, Inc. (NASDAQ:META) shares that were worth $185 million at the end of 2016’s first quarter. Since then, save for the second quarter, the firm has continued to hold the shares. Its latest stake in Meta Platforms, Inc. (NASDAQ:META) is worth $249 million and comes courtesy of 436,500 shares.
The social media company came under the scrutiny of European officials earlier this month after the European Commission ordered it to give access to WhatsApp to its rivals in the AI chatbot industry. The Commission’s order came after Meta Platforms, Inc. (NASDAQ:META)’s French and Spanish rivals complained to the authorities. On June 9th, Truist kept a Buy rating and a $840 share price target for the firm after the launch of new subscription plans.
7. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holdings in Q1 2026: 133
First Appeared In 13F Holdings: Q4 2013
Latest Stake: $65 million
ASML Holding N.V. (NASDAQ:ASML) is one of the most important firms in the world due to its ability to make advanced chip manufacturing machines. It has been present in Appaloosa Management’s 13F holdings since the fourth quarter of 2013. After remaining the holding until the second quarter of 2014, ASML Holding N.V. (NASDAQ:ASML) reappeared in 2023’s second quarter when the fund held 80,000 shares that were worth $57 million. Since then, the Dutch equipment manufacturer has been a constant part of Appaloosa’s holdings, with the fund’s latest stake being $65 million and coming courtesy of 46,500 shares.
Banking giant JPMorgan discussed ASML Holding N.V. (NASDAQ:ASML)’s shares on June 3rd. It raised the share price target to €1,900 from €1,515 and kept an Overweight rating on the stock. A day later, Bank of America raised the share price target to €1,921 from €1,710 kept a Buy rating. BofA’s coverage mentioned ASML Holding N.V. (NASDAQ:ASML)’s extreme ultraviolet lithography (EUV) machines, as it remarked that through production efficiencies, the firm could increase the number of units produced.
6. Baidu Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holdings in Q1 2026: 50
First Appeared In 13F Holdings: Q4 2013
Latest Stake: $77 million
Chinese search engine and technology giant Baidu Inc. (NASDAQ:BIDU)’s shares are up by 32% over the past year and are down by 25.7% year-to-date. They first appeared in Appaloosa’s filings in the fourth quarter of 2013 and were held until the second quarter of 2014. After that, Baidu Inc. (NASDAQ:BIDU)’s stock appeared in the first quarter of 2021 and then in the second quarter of 2023. Since then, the shares have been a part of the holdings. Appaloosa’s latest stake in Baidu Inc. (NASDAQ:BIDU) is worth $77 million and comes courtesy of 692,100 shares.
As is the case with its Western counterparts, the Chinese firm is also focusing on the autonomous driving market. Its Apollo Go platform has entered into a joint venture with Swiss Post’s PostBus. On June 12th, the joint venture received the local authorities’ clearance to conduct Level 4 trials in an open-road area. Baidu Inc. (NASDAQ:BIDU) is also a player in the AI chip industry and provides AI GPUs to several firms.
While we acknowledge the potential of BIDU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BIDU and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see David Tepper Stock Portfolio: 5 Long-Term Stock Picks.
Disclosure: None. Follow Insider Monkey on Google News.
