David Tepper seems to be changing his stripes, first with activist investing, then will selling top stocks from his fund.
A big mystery is why David Tepper is selling stocks that are hedge fund darlings, including Apple, Facebook, CBS, Citigroup and Halliburton, according to Insider Monkey. While it is understandable that someone might want to sell Halliburton, given the decline in oil prices, Apple is still championed by Carl Icahn and it seems that the sky is the limit for Facebook.
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What is odd is that Tepper made bullish comments about U.S. stocks in October on Bloomberg and in December. Perhaps Tepper is taking gains and is finding new places to invest that have yet to rebound. After all, he caught the financials at the bottom prior to their rise in 2009 after the financial crisis–that strategy made him $4 billion.
Appaloosa has been losing, and shed 40% last quarter, so perhaps Tepper is regrouping from selling Citigroup, which was his largest holding, and formed 6.35% of his portfolio. Tepper knows a thing or two about bank stocks, so perhaps he was right in selling, although Dan Loeb of Third Point initiated a new position in Citigroup with a total of 5 million shares. Citigroup shed 4.6% of its value last year and regulations continue to be a headache for the company.
