Invest like Billionaire David Tepper: Apple Inc. (AAPL), NXP Semiconductors NV (NXPI), Delta Air Lines, Inc. (DAL)
David Tepper is a billionaire hedge fund manager and the founder of Appaloosa Management. As of October 1, his portfolio is valued at $4.04 billion. Prior to Appaloosa, Tepper worked with Goldman Sachs. We look at some of his recent investment moves to learn how his hedge fund has realized an annualized return over the past three years of +9.73%.
In the most recent quarter, Tepper added Apple Inc. (NASDAQ:AAPL) to his portfolio. While it’s a recent addition, Apple already makes up nearly 7% of his portfolio with his stake valued at $277.75 million. Apple has been in the news for the record sales witnessed for its two new phone models – iPhone 6s and iPhone 6s Plus. In the first weekend of the launch, Apple sold 13 million iPhones as opposed to 10 million phones sold during the first weekend for the models launched last year. According to TipRanks’ statistics, a majority of analysts who have recently rated the stock share Tepper’s views. Out of 38 analysts, 28 have rated it as a Buy, 9 have rated it as a Hold, and only 1 has given Apple a Sell rating.
In the most recent quarter, Tepper reduced his holdings in NXP Semiconductors NV (NASDAQ:NXPI) by nearly 9%. The stock has been in the news recently after the EU approved its acquisition of Freescale, a US-based rival of the company. There has been a general decline in the semiconductor space due to fluctuating DRAM prices linked to the fall of the PC. According to a report released by Gartner in July 2015, DRAM industry revenues are expected to drop by 17.4 percent in 2016 and by 7 percent in 2017. Unlike Tepper, all the 6 analysts who have recently rated the stock have given a Buy rating. Based on their ratings, TipRanks’ statistics show NXP Semi as a Strong Buy with an average consensus price target of $127, marking a 48% update from current levels.
Tepper has reduced his holdings in Delta Air Lines, Inc. (NYSE:DAL) by 8.61% year-to-date. Delta’s stock has declined 8.76% year-to-date. However, this performance is better than the 12-month performance of Dow Jones US Airlines Index, which has dropped 12% during the same period. According to the latest earnings release of the company, Delta reported revenues of $10.70 billion, which was 0.65% higher than consensus estimates. However, according to TipRanks’ statistics, all 7 analysts who have recently rated Delta have rated it as a Buy, indicating a different view than Tepper. The average consensus price target for the stock, as per TipRanks’ statistics, is $58, marking a 27.73% upside from current levels.
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