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Tepper


PlanMaestro

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Didn't he sell out of BofA in late 2011 when Munger/Buffett/RestofUs were buying?  Has he ever explained why he did that?

 

A lot of that is covered in Plan's post - a snippet"

 

Tepper was able to buy Bank of America preferred shares at just twelve cents on the dollar and Citigroup bonds at just nineteen cents. As those stocks rallied by the end of 2009, Appaloosa raked in the billions.

 

 

I think most of his BAC was gone by mid-2011:

 

http://www.dataroma.com/m/hist/p_hist.php?f=AM

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Didn't he sell out of BofA in late 2011 when Munger/Buffett/RestofUs were buying?  Has he ever explained why he did that?

 

A lot of that is covered in Plan's post - a snippet"

 

Tepper was able to buy Bank of America preferred shares at just twelve cents on the dollar and Citigroup bonds at just nineteen cents. As those stocks rallied by the end of 2009, Appaloosa raked in the billions.

 

 

I think most of his BAC was gone by mid-2011:

 

http://www.dataroma.com/m/hist/p_hist.php?f=AM

 

He sold out of it completely in Q4 2011. 

 

During the fear.  It wasn't exactly the kind of "getting greedy when others were fearful" behavior as depicted in the blog.  So I wonder if he sold it and bought a European bank instead, or what.  Did he just get scared?  I've wondered about it since then.

 

It was also the quarter when Ray Dalio's fund bought BAC common.

 

Nygren I think also sold out of it during that time (he must have bought it back higher since then).

 

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Actually - this is the correct table from GuruFocus of Tepper's BAC trades:

 

NYSE:BAC ($14.51) - David Tepper Holding History

 

No. of Shares at Quarter Ends

NYSE:BAC Quarterly Average Price ($)

 

 

Also see: Holding History of other gurus

Quarterly Buys and Sells in the Last 5 Years:

Period Bought/Sold (Sh.) Qtr. End Shares Avrg. Price Gain (%)

2009Q2 -701,799 46,848,201 $10.89 33.2%

2009Q3 -12,972,100 33,876,101 $15.54 -6.6%

2009Q4 -1,624,000 32,252,101 $15.96 -9.1%

2010Q1 -1,909,502 30,342,599 $16.23 -10.6%

2010Q2 -2,992,900 27,349,699 $16.73 -13.3%

2010Q3 -4,876,000 22,473,699 $13.67 6.1%

2010Q4 +2,593,845 25,067,544 $12.24 18.5%

2011Q1 -7,851,695 17,215,849 $14.21 2.1%

2011Q2 -7,215,849 10,000,000 $11.86 22.3%

2011Q3 -10,000,000 0 $8.21 76.7%

2012Q1 +7,456,408 7,456,408 $7.93 83%

2012Q2 -3,599,400 3,857,008 $7.92 83.2%

2012Q3 -1,100,000 2,757,008 $8.05 80.2%

2012Q4 -274,000 2,483,008 $9.9 46.6%

2013Q2 +3,861,599 6,344,607 $12.75 13.8%

2013Q3 -4,125,000 2,219,607 $14.27 1.7%

2013Q4 -2,219,607 0 $14.83 -2.2%

2014Q1 0 0 $16.82 -13.7%

Current Price: $14.51

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2011Q3  -10,000,000  0  $8.21  76.7%

2012Q1  +7,456,408  7,456,408  $7.93  83%

 

That was the trade I remember (got the quarter wrong).  He sold the last of it during that panic -- must have been August or September 2011 when Buffett was working out the arrangement for the warrants.

 

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Here's a November 2007 interview with Tepper. On page 6 he talks discusses his cash position and nervousness about the market.

 

Perhaps he wasn't "deified" enough back then to believe he could manipulate a $10T market himself, and he truly thought the market could go down.

 

Perhaps now he is deified enough to believe he can manipulate a $10T market himself, and truly believes the market will go UP but wants to talk it down to get back in....

172406928-David-Tepper-s-2007-Presentation-at-Carnegie-Mellon.pdf

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Here's a November 2007 interview with Tepper. On page 6 he talks discusses his cash position and nervousness about the market.

 

Perhaps he wasn't "deified" enough back then to believe he could manipulate a $10T market himself, and he truly thought the market could go down.

 

Perhaps now he is deified enough to believe he can manipulate a $10T market himself, and truly believes the market will go UP but wants to talk it down to get back in....

 

Wow - I'm really surprised you think he's trying to manipulate markets. I personally feel he says what he thinks and calls it exactly like he sees it.

Kinda of a strong accusation you are making.

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Does anyone have an idea of what kind of holding period Tepper has? He strikes me as a person like Soros that turns on a dime and the 13Fs are just like random snapshots in time. Am I totally off here?

 

:)

 

When Robert Rodriquez commented he kept his own list of the top 5 holdings in the FPA fund and they significantly outperforming the fund itself, I was curious if the same applied to Tepper, so I tried to backtest it. (I didn't find anything concrete since many have been a part of M&A that I couldn't find old quotes for the periods he held)

 

From that I could see his top positions changed fairly regularly.

 

So yes, he changed his positions quite a bit but the difference between him and Soros is the concentration.  Tepper seems to typically hold about 20-30 stocks.  IIRC, Soros is an index, a very successful index.  ;D

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  • 3 weeks later...
  • 2 months later...

http://www.businessweek.com/news/2014-09-04/appaloosa-s-tepper-says-u-dot-s-dot-bond-rally-ending-as-ecb-cuts-rates

 

David Tepper, founder of $20 billion hedge-fund firm Appaloosa Management LP, said the rally in the bond market is ending after the European Central Bank unexpectedly cut interest rates to spur economic growth and stave off the threat of deflation.

 

“It’s the beginning of the end of the bond market rally,” Tepper, 56, said in a telephone interview. “We are done.”

 

“Draghi wants inflation in the Euro zone. He will not stop,” Tepper said.

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  • 5 months later...

not much to be bullish about in the short term. China imports down 20%, house prices are starting to go down, Japanese Central bank is buying almost all the JGB's in the market, and slowly losing credibility. Europe and euro looks shaky, with Greece looking likely to be kicked out. world debt/gdp at sky high levels.

 

The situation seems similar as in 2007, except on steroids.

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