David Tepper - Appaloosa Management Portfolio Q2’2025: Top Holdings & Recent Changes
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David Tepper, founder of Appaloosa Management, once again demonstrates his reputation as a bold, opportunistic investor. His Q2’2025 portfolio reveals a dynamic approach, with $6.4 billion allocated across 38 positions and significant shifts in several high-profile holdings. Tepper’s latest moves reflect both conviction in secular growth stories and a willingness to tactically trim or add to positions as market volatility creates new opportunities.
Portfolio Overview: Tactical Concentration in a Shifting Landscape
Portfolio Highlights (Q2’2025): - Market Value: $6,449.0M - Top 10 Holdings: 64.6% - Portfolio Size: 38 -1 - Average Holding Period: 9 quarters - Turnover: 39.5%
Appaloosa’s Q2’2025 portfolio remains highly concentrated, with nearly two-thirds of capital in the top 10 holdings. This reflects Tepper’s preference for high-conviction bets, even as he actively manages risk through significant quarterly turnover 39.5%. The average holding period of 9 quarters signals a willingness to let winners run, but also to pivot quickly when market conditions or company fundamentals shift.
Tepper’s approach is both opportunistic and disciplined. The portfolio’s size—38 positions, down by one from last quarter—suggests ongoing pruning of lower-conviction ideas. The high turnover rate highlights his readiness to capitalize on market dislocations, while the concentration in the top names underscores his belief in a handful of dominant themes and companies.
Top Holdings Analysis: Aggressive Moves in Tech, Healthcare, and Energy
The portfolio’s core is defined by bold moves in both established giants and emerging leaders. Alibaba Group Holding Limited remains the largest position at 12.4% of the portfolio, though Tepper reduced his stake by 23.43%, signaling caution amid ongoing uncertainty in Chinese equities. In contrast, UnitedHealth Group Incorporated saw a dramatic 1,300% increase, now representing 11.9%—a clear sign of renewed conviction in healthcare’s defensive growth.
Amazon.com, Inc. was boosted by 7.57% to 9.2% of assets, reflecting confidence in e-commerce and cloud tailwinds. Meanwhile, Vistra Corp. 5.4% and NRG Energy, Inc. 4.9% were both trimmed, down 21.74% and 3.41% respectively, as Tepper recalibrated his energy exposure after strong runs.
Tech exposure remains robust but tactical. Meta Platforms, Inc. was cut by 27.27% (now 4.6%), and Alphabet Inc. by 25.37% 4.1%, suggesting profit-taking or risk management after significant gains. However, NVIDIA Corporation was aggressively added +483.33%, now at 4.3%, reflecting a bullish stance on AI and semiconductor growth.
Other notable moves include a 14.06% reduction in Uber Technologies, Inc. 4.0% and a modest 1.96% trim in Microsoft Corporation 3.9%. These shifts show Tepper’s willingness to lock in gains while maintaining exposure to secular winners.
Rounding out the top 10-15, the portfolio continues to feature a blend of U.S. and international names, with a tilt toward large-cap, liquid stocks that offer both growth and resilience.
What the Portfolio Reveals About Tepper’s Current Strategy
- Opportunistic Rotation: Tepper is unafraid to make outsized moves—such as the massive addition to UnitedHealth or the sharp reduction in Alibaba—demonstrating a flexible, market-driven approach.
- Selective Tech Exposure: While trimming some tech giants, he’s doubling down on AI and cloud themes via NVIDIA and Amazon.
- Risk Management: Significant reductions in volatile names like Meta and Alphabet suggest a focus on locking in profits and managing downside risk.
- Sector Diversification: The portfolio balances technology, healthcare, energy, and consumer platforms, avoiding overconcentration in any single theme.
- Global Perspective: Despite reducing Alibaba, international exposure remains a key component, reflecting a willingness to seek value beyond U.S. borders.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Alibaba Group Holding Limited (BABA) | $801.5M | 12.4% | Reduce 23.43% |
| UnitedHealth Group Incorporated (UNH) | $764.3M | 11.9% | Add 1,300.00% |
| Amazon.com, Inc. (AMZN) | $592.4M | 9.2% | Add 7.57% |
| Vistra Corp. (VST) | $348.9M | 5.4% | Reduce 21.74% |
| NRG Energy, Inc. (NRG) | $317.9M | 4.9% | Reduce 3.41% |
| Meta Platforms, Inc. (META) | $295.2M | 4.6% | Reduce 27.27% |
| NVIDIA Corporation (NVDA) | $276.5M | 4.3% | Add 483.33% |
| Alphabet Inc. (GOOG) | $266.1M | 4.1% | Reduce 25.37% |
| Uber Technologies, Inc. (UBER) | $256.6M | 4.0% | Reduce 14.06% |
The table above highlights the remarkable concentration of Appaloosa’s capital: the top three positions alone account for over 33% of the portfolio. Tepper’s willingness to make large, rapid changes—such as the 1,300% increase in UnitedHealth—demonstrates a high-conviction, high-agility style. The aggressive trimming of several tech and international names suggests a tactical approach to risk, while the addition to NVIDIA signals a strong belief in the next wave of technological disruption.
Investment Lessons from David Tepper’s Playbook
- Be Opportunistic, Not Dogmatic: Tepper’s rapid shifts show the value of adapting to new information and market conditions.
- Concentration Reflects Conviction: When you truly understand a business, don’t be afraid to size up—Tepper’s top positions are meaningful bets.
- Trim Winners, Add to Strength: Locking in gains and reallocating to new opportunities is a hallmark of his approach.
- Diversify Across Sectors and Geographies: Even with concentration, Tepper avoids overexposure to a single sector or region.
- Embrace Volatility: High turnover and tactical moves can be a source of alpha when executed with discipline.
Looking Ahead: What Comes Next?
With a portfolio turnover of nearly 40%, Tepper is likely to remain active as market volatility persists. The significant cash generated from reductions in Alibaba, Meta, and Alphabet could be redeployed into emerging opportunities, particularly in AI, healthcare, or undervalued cyclicals. Investors should watch for new positions or further increases in high-conviction themes, as well as Tepper’s ongoing risk management in response to macroeconomic shifts.
FAQ about David Tepper’s Appaloosa Portfolio
Q: Why did Tepper make such a large addition to UnitedHealth Group this quarter?
Tepper’s 1,300% increase in UnitedHealth Group suggests a strong conviction in healthcare’s defensive growth and resilience amid market uncertainty.
Q: How concentrated is Appaloosa’s portfolio?
The top 10 holdings make up 64.6% of the portfolio, reflecting a high-conviction, focused approach that is typical of Tepper’s style.
Q: How does Tepper manage risk given such concentration?
Tepper actively trims and adds to positions, as seen with significant reductions in Alibaba, Meta, and Alphabet, balancing conviction with tactical risk management.
Q: Which sectors does Tepper favor right now?
Appaloosa’s portfolio is diversified across technology, healthcare, energy, and consumer platforms, with notable moves in AI, cloud, and healthcare.
Q: How can I track David Tepper’s portfolio changes?
You can follow Tepper’s latest moves via 13F filings, but keep in mind there’s a 45-day reporting lag. For real-time analysis and historical trends, use ValueSense’s Appaloosa portfolio tracker.
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