Billionaire investor David Tepper’s hedge fund, Appaloosa Management, made some strategic moves in the first quarter of 2024. The fund increased its investments in Chinese tech stocks, with Alibaba now being its top holding after acquiring hundreds of millions of dollars worth of shares. Additionally, Appaloosa boosted its stakes in PDD Holdings and Baidu, placing them in the top ten holdings list.
Notably, the fund also added new Chinese-focused stocks to its portfolio, such as Adobe, iShares FTSE China Large-Cap ETF (FXI), JD.com, and Kraneshares CSI China Internet ETF (KWEB). While maintaining sizable positions in American tech names, Appaloosa reduced its holdings in companies like Alphabet and Meta Platforms during the quarter. The fund also disclosed put options against Microsoft, suggesting potential selling in the upcoming quarter.
Outside of the tech sector, Appaloosa exited a small position in HCA Holdings and initiated a small position in Boeing. Despite the lack of specific details in quarterly filings, Chinese tech stocks have been performing well, with KWEB rising by 19% in the second quarter.
David Tepper, the founder of Appaloosa, hinted at transitioning the fund into a family office back in 2019. As an established investor, Tepper’s strategic moves in the market are closely watched by investors and analysts alike.
DailyBubble views Appaloosa’s increased focus on Chinese tech stocks as a bold and potentially lucrative move. While the fund’s adjustments reflect changing market dynamics, it also signals Tepper’s confidence in the long-term prospects of these investments. As always, it will be interesting to see how these decisions play out in the coming quarters.