Tepper’s Appaloosa Takes New Stake in Apple, Dumps Facebook

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Shoshanna Delventhal
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Shoshanna Delventhal is an expert in equities investing with 3+ years of experience as a business, finance, and markets reporter. Shoshanna received her bachelor's from the University of North Carolina at Chapel Hill—double majoring in economics and international relations.
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Published November 15, 2018

Appaloosa Management, the hedge fund founded and led by billionaire businessman David Tepper, added new stakes in Apple Inc. (AAPL) and financial services and banking holding company State Street Corp. (STT) in the third quarter, according to the release of 13F filings with the Securities and Exchange Commission (SEC). 

The global hedge fund based in Miami Beach, Florida, also cut its exposure to Facebook Inc. (FB) and Chinese internet behemoth Alibaba Group Holdings (BABA) in the period. 

Billionaire Investors Embrace Apple

The hedge fund manager and philanthropist's firm added 100,000 shares of Apple and 1.2 million of State Street as of the end of September. Warren Buffett and his Omaha, Nebraska-based conglomerate Berkshire Hathaway Inc. (BRK.A) have also been doubling down on financial sector plays, as well as Apple, now the firm's largest holding in its $207 billion stock portfolio. 

While Berkshire upped its position in Bank of America Corp. (BAC) in the recent quarter, Appaloosa more than halved its stake in the bank to 3.4 million shares. 

Appaloosa also dumped shares of Mark Zuckerberg's Facebook (FB), which has experienced a year of turbulence marked by a series of data scandals and broader sell-offs that have weighed heavily on the once red-hot tech sector and its FAANG superstars. 

In September, Tepper told CNBC that Facebook's stock looked like an attractive bet due to its depressed valuation and that the firm had not cut its position. By the end of the quarter, however, the hedge fund has reduced its stake in Facebook by 1.8 million shares to 3.3 million shares. 

Appaloosa also more than doubled its position in PG&E Corp. (PCG) in Q3. The utility company has seen its stock plummet over 60% since the start of November regarding its potential liability in the massive wildfires that are still raging across North California. 

Tepper, the president of the $14 billion hedge fund, is also the owner of the Carolina Panthers, the National Football League team. 

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