Market and hedge fund industry
The first quarter was challenging for hedge fund managers as the broader-market S&P 500 (SPY), Dow Jones Industrial Average (DIA), and NASDAQ Composite (QQQ) were unstable due to rising US-China trade war concerns and rate hike expectations.
David Tepper’s top five holdings in Q1 2018
Billionaire investor and Appaloosa Management founder David Tepper stated last year that he had an optimistic view of the US technology sector (XLK), expecting good performance and returns. Appaloosa’s top five holdings in the first quarter were Micron Technology (MU), Facebook (FB), Alibaba (BABA), Allergan (AGN), and Altaba (AABA), representing approximately 19.0%, 10.2%, 7.7%, 6.4%, and 6.1%, respectively, of its portfolio.
Facebook remained one of Appaloosa’s top holdings despite the company’s recent data breach issue. Tepper’s strong position in Facebook suggests he has positive views on the stock.
In March, Facebook’s stock price fell drastically, by ~10.4%, after news broke that data research company Cambridge Analytica had taken up to 50 million Facebook users’ personal data without their consent. After this incident, bond guru and billionaire fund manager Jeffrey Gundlach said that would be taking a short position on Facebook, as he believed the issue would impact investors’ perception of the company. In the next part of this series, we’ll analyze Tepper’s top sells in the first quarter.