Appaloosa Management bailed on AAPL in Q1, sold 4.5 million shares

Posted:
in AAPL Investors
David Tepper's fund sold its entire Apple stake in the first quarter, worth up to $833 million.

Appaoloosa Management


According to the New York Post on Wednesday, Tepper's fund Appaloosa Management, sold all its Apple shares during the first quarter. It's not clear exactly in the quarter when the shares were sold. According to Thomson Reuters, Appaloosa owned 4,587,852 shares of Apple stock. Based on fluctuations of share price during the quarter, the value of the stake was somewhere within a range of $711.8 million and $833.6 million.

Had Appaloosa Management sold when Apple hit its all-time high of $190.37 on May 11, the stake would have been worth $873.3 million.

Appaloosa had sold its entire Apple stake in 2016, around the time that Carl Icahn did the same, only to return in the interim. The company then had trimmed the Apple stake again in late 2017, due to worries about "China policy," Tepper told CNBC in March, before dropping the rest for as-yet unknown reasons in early 2018.

The news comes on the same day that Warren Buffett's Berkshire Hathaway officially became Apple's third-largest shareholder.

Ready for some football

Carolina Panthers logo


The news comes as Tepper is in the news for unrelated reasons. on Wednesday, the NFL announced that Tepper is buying the Carolina Panthers franchise for $2.275 billion, the largest amount ever paid for an NFL team. The deal remains subject to approval by NFL owners.

According to an NFL.com story, the 60-year-old Tepper has an estimated net worth of $11 billion, which made him the wealthiest man in the state of New Jersey before he moved to Florida. He started Appaloosa Management in 1993 after he was passed over for partnership at Goldman Sachs.

Tepper later purchased a $43.5 million Hamptons home formerly owned by the executive who passed him over, razed it, and built a new one twice its size. Tepper also claims to have popularized the phrase "it is what it is."
«1

Comments

  • Reply 1 of 23
    lkrupplkrupp Posts: 6,389member
    Looks like Dave bought into the negative hysteria and lost. Meanwhile Uncle Warren made out like a bandit.
    edited May 16 cornchipRonnnieObrisancejony0
  • Reply 2 of 23
    mac_dogmac_dog Posts: 580member
    All the acquisition of the panthers means is that he will now have a tax shelter for his millions (or billions). Because the 501c3 status of the NFL is one of the largest fleecing scams this country has ever seen...and religious organizations. 
    baconstangcornchipTomElarryjw
  • Reply 3 of 23
    red oakred oak Posts: 614member
    So, he missed out on a minimum of $50 million dollars additional profit.  Way to go  

    And, seems to have a serious Napoleon complex 
    edited May 16 SpamSandwichbaconstangjmey267TomE
  • Reply 4 of 23
    SpamSandwichSpamSandwich Posts: 29,874member
    I just gotta LOL.
    cornchip
  • Reply 5 of 23
    allmypeopleallmypeople Posts: 330member
    Bulls make money, bears make money, pigs get slaughtered. I understand the move. I'm in long but I'm going to be getting my parents to gradually sell off their 2400 shares. They're at the age where they want to enjoy the cash.
    TomE
  • Reply 6 of 23
    brucemcbrucemc Posts: 1,434member
    For every buyer, there has to be a seller...
    cornchipTomE
  • Reply 7 of 23
    All the big hedge funds are piling into Facebook because they know the company can't be touched by the Feds. Despite all the moaning and groaning about loss of personal privacy and data breaches, the big investors are more interested in making money than all that consumer privacy nonsense. Almost no one is concerned with loss of personal privacy and the companies that harvest personal data are the most profitable ones around. Even after the data-breach scandal, Facebook stock is up for the year. Zuckerberg walked away untouched by the Capitol Hill watchdogs.
    cornchipkudumagman1979anantksundaramTomE
  • Reply 8 of 23
    kestralkestral Posts: 200member
    Tepper is one of the greatest investors of this era. Since Appaloosa began, it's destroyed Berkshire's returns.

    Keeping in mind I'm a huge fan of Buffett and AAPL, and Tepper had the massive advatage of smaller portfolio size, it's not a diss on Buffett, but I find it hilarious to see the ignorant fanboys diss Tepper without any knowledge of who he is and what he's accomplished.

    The guy is a genius and I respect him for the fact that when he was passed over for partnership at Goldman's, he stuck it to them. He fought the Vampire Squid and won.
    edited May 16 ksec
  • Reply 9 of 23
    MacProMacPro Posts: 17,562member
    Oh what a shame ...

  • Reply 10 of 23
    mac_dog said:
    All the acquisition of the panthers means is that he will now have a tax shelter for his millions (or billions). Because the 501c3 status of the NFL is one of the largest fleecing scams this country has ever seen...and religious organizations. 
    Individual NFL teams were never not-for-profit, and last year the NFL voluntarily gave up its NFP status. 
  • Reply 11 of 23
    SpamSandwichSpamSandwich Posts: 29,874member
    mac_dog said:
    All the acquisition of the panthers means is that he will now have a tax shelter for his millions (or billions). Because the 501c3 status of the NFL is one of the largest fleecing scams this country has ever seen...and religious organizations. 
    Individual NFL teams were never not-for-profit, and last year the NFL voluntarily gave up its NFP status. 
    I thought that happened much earlier... but after looking into it, looks like they gave that up in 2015.

    https://en.wikipedia.org/wiki/National_Football_League#Corporate_structure


    edited May 16
  • Reply 12 of 23
    mac_dog said:
    All the acquisition of the panthers means is that he will now have a tax shelter for his millions (or billions). Because the 501c3 status of the NFL is one of the largest fleecing scams this country has ever seen...and religious organizations. 
    Individual NFL teams were never not-for-profit, and last year the NFL voluntarily gave up its NFP status. 
    I thought that happened much earlier... but after looking into it, looks like they gave that up in 2015.

    https://en.wikipedia.org/wiki/National_Football_League#Corporate_structure


    Time flies when you’re having fun 
  • Reply 13 of 23
    anantksundaramanantksundaram Posts: 18,685member
    kestral said:
    Tepper is one of the greatest investors of this era. Since Appaloosa began, it's destroyed Berkshire's returns.

    Keeping in mind I'm a huge fan of Buffett and AAPL, and Tepper had the massive advatage of smaller portfolio size, it's not a diss on Buffett, but I find it hilarious to see the ignorant fanboys diss Tepper without any knowledge of who he is and what he's accomplished.

    The guy is a genius and I respect him for the fact that when he was passed over for partnership at Goldman's, he stuck it to them. He fought the Vampire Squid and won.
    You can distinguish luck from skill in Appaloosa’s returns? 

    Please enlighten us ‘fanboys’. 
    edited May 16 SpamSandwich
  • Reply 14 of 23
    anantksundaramanantksundaram Posts: 18,685member

    red oak said:
    So, he missed out on a minimum of $50 million dollars additional profit.  Way to go  

    And, seems to have a serious Napoleon complex 
    That’s not the only ‘complex’ he apparently has: http://www.businessinsider.com/panthers-owner-david-tepper-brass-testicles-office-2018-5?r=UK&IR=T
  • Reply 15 of 23
    kestralkestral Posts: 200member
    You can distinguish luck from skill in Appaloosa’s returns? 

    Please enlighten us ‘fanboys’. 
    Read it and weep, fanboy. 

    Appaloosa's returns since inception: 28%
    http://www.nj.com/business/index.ssf/2013/08/teppers_short_hills_hedge_fund.html

    Berkshire's returns since inception: 21%
    https://www.fool.com/investing/2017/07/23/an-interesting-chart-about-berkshire-hathaway.aspx

  • Reply 16 of 23
    radarthekatradarthekat Posts: 2,568moderator
    kestral said:
    Tepper is one of the greatest investors of this era. Since Appaloosa began, it's destroyed Berkshire's returns.

    Keeping in mind I'm a huge fan of Buffett and AAPL, and Tepper had the massive advatage of smaller portfolio size, it's not a diss on Buffett, but I find it hilarious to see the ignorant fanboys diss Tepper without any knowledge of who he is and what he's accomplished.

    The guy is a genius and I respect him for the fact that when he was passed over for partnership at Goldman's, he stuck it to them. He fought the Vampire Squid and won.
    Does that genius include this?

    In September 2011, a Delaware bankruptcy court found that Appaloosa Management is one of four hedge funds that had played a role in Washington Mutual’s restructuring which might have received confidential information that could have been used to trade improperly in the bank’s debt.
    SpamSandwich
  • Reply 17 of 23
    radarthekatradarthekat Posts: 2,568moderator
    When you sell all your Apple shares and Berkshire Hathaway buys them, it might be time to stop reading analyst reports and get back to doing your own research.   
    SpamSandwich
  • Reply 18 of 23
    kestralkestral Posts: 200member
    Does that genius include this?

    In September 2011, a Delaware bankruptcy court found that Appaloosa Management is one of four hedge funds that had played a role in Washington Mutual’s restructuring which might have received confidential information that could have been used to trade improperly in the bank’s debt.
    Yes it does. Hedge funds get sued all the time. Just like Apple has it's share of lawsuits, Berkshire has issues as well, it's all part and parcel of the business. If you're looking for perfect angels, there aren't any.

    http://fortune.com/2016/09/14/berkshire-hathaway-lawsuit/
    https://www.theblaze.com/news/2012/03/09/yet-another-warren-buffett-owned-company-sued-for-tax-evasion
  • Reply 19 of 23
    anantksundaramanantksundaram Posts: 18,685member
    kestral said:
    You can distinguish luck from skill in Appaloosa’s returns? 

    Please enlighten us ‘fanboys’. 
    Read it and weep, fanboy. 

    Appaloosa's returns since inception: 28%
    http://www.nj.com/business/index.ssf/2013/08/teppers_short_hills_hedge_fund.html

    Berkshire's returns since inception: 21%
    https://www.fool.com/investing/2017/07/23/an-interesting-chart-about-berkshire-hathaway.aspx

    If anyone sounds like a breathless little fanboy, it surely sounds like you vis-a-vis Tepper and Appaloosa. 

    Where in either link is the issue of luck versus skill addressed? I’ll wait. 
    SpamSandwichrandominternetperson
  • Reply 20 of 23
    TomETomE Posts: 104member
    Well, Holder have not made the $'s until they sell.  They sell because they need the $'s for something. What ever that may be.  They Buy because they think it is a good buy or will be soon.  Follow the $'s they say.  I usually Hold & Buy because I am the little guy and cannot influence the market.

Sign In or Register to comment.