Appaloosa Management, the hedge fund of David Tepper, was up 25% through October, adding another sizable return year to its history, the Wall Street Journal reports. Tepper was on CNBC this morning and gave an overview of his fund’s moves during the year: · December – Waited for the LTRO in Europe and invested fast right after in December.
· April – A week before the Greek election put falls were at 13, almost for free, so he bought those and didn’t have a loss in the drawdown.
· Took down positions ahead of election – because people didn’t want Obama to win – and fiscal cliff.
· When the market went down, call premiums were cheap, so they bought premiums and got a little longer until the end of the year.
Tepper declined to mention specific stock names in the interview, but GuruFocus’ All-in-One Screener shows his top-returning stock positions this year: Bank of America, Masco Corporation, Huntsman Corp, Dean Foods Company and Delphi Automotive Plc.
Bank of America
Bank of America has gained 97% year to date, reaching a new 52-week high on Monday at $10.98 per share. Its 52-week low of $4.92 occurred in January.
David Tepper bought 47,550,000 shares to start off his Bank of America position in the first quarter of 2009, paying $7 each on average. He became a seller as the stock’s price increased to the high teens over the next several quarters, bought more on a drop, and finally eliminated the position in the third quarter of 2011.
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· April – A week before the Greek election put falls were at 13, almost for free, so he bought those and didn’t have a loss in the drawdown.
· Took down positions ahead of election – because people didn’t want Obama to win – and fiscal cliff.
· When the market went down, call premiums were cheap, so they bought premiums and got a little longer until the end of the year.
Tepper declined to mention specific stock names in the interview, but GuruFocus’ All-in-One Screener shows his top-returning stock positions this year: Bank of America, Masco Corporation, Huntsman Corp, Dean Foods Company and Delphi Automotive Plc.
Bank of America
Bank of America has gained 97% year to date, reaching a new 52-week high on Monday at $10.98 per share. Its 52-week low of $4.92 occurred in January.
David Tepper bought 47,550,000 shares to start off his Bank of America position in the first quarter of 2009, paying $7 each on average. He became a seller as the stock’s price increased to the high teens over the next several quarters, bought more on a drop, and finally eliminated the position in the third quarter of 2011.
Read Full Article>>>