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Why Micron Was Tepper’s Top Buy in Q1 2018

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May. 23 2018, Updated 2:10 p.m. ET

Tepper’s top buys

David Tepper’s Appaloosa Management’s top buys in the first quarter were Micron Technology (MU), Lam Research (LRCX), Wells Fargo (WFC), UBS (UBS), and Allergan (AGN), changing its holdings by 8.5%, 2.7%, 1.6%, 1.3%, and 1.1%, respectively.

The company raised its Micron Technology position by 8.5% to 19% of its portfolio, making Micron its largest holding. According to Micron’s institutional ownership report, Appaloosa was the fifth-largest investor in Micron in the first quarter, with 35.4 million shares.

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Appaloosa’s rapidly increasing position in Micron signals Tepper’s optimism toward the stock. Improving demand in the semiconductor industry has been positive for Micron, and its growing revenue is boosting the stock. In the past few quarters, it has posted strong revenue growth. In the first quarter, its revenue grew 58% year-over-year to $7.4 billion. As of May 21, MU had returned 27% year-to-date, while the broader-market S&P 500 (SPY) had risen 1.4%.

Tepper also took new positions in Lam Research (LRCX), Wells Fargo (WFC), and UBS (UBS) in the first quarter. In the next part of this series, we’ll analyze Tepper’s top sectors.

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