Stock Quotes in this Article: AMAT, CSCO, HPQ, KLAC, LRCX, MSFT, MU, SMH, TER, YHOO

 

NEW YORK (Stockpickr) -- Appaloosa Management's David Tepper shot to hedge fund stardom in September 2010 when he predicted that stocks had nowhere to go but up. The S&P 500 complied, ending 2010 up about 13%.

Last month, he returned to CNBC to say that though he's more cautious than he was several months ago, he's still bullish. "The economy is so much better now," he said, but "it's not a free ride in this market." He said equities still made for strong investments, singling out semiconductor stocks such as Micron (MU).

And Tepper was willing to put his money where his mouth was. In the fourth quarter he made a big enough purchase of Micron, a new position, to count it as one of Appaloosa's top holdings.

With this in mind, Stockpickr, which tracks the top 30 holdings of various mutual funds, hedge funds and super investors, is taking a look at the holdings of Appaloosa Management -- in particular its tech holdings. Tepper continued to increase his exposure to tech in the fourth quarter. According to GuruFocus.com, his portfolio is now 21.9% weighted to tech, second only to his financials exposure.

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    Here's a closer look at some of Tepper's largest financial holdings as of his latest 13F filing with the SEC, which reflects holdings as of Dec. 31, 2010.

    10. Yahoo!


    As of the most-recent reporting period, Yahoo! (YHOO) comprises 0.9% of Appaloosa's portfolio. The 2.7 million-share position represents a 3% decrease from the previous quarter.

    Yahoo! shows up in one of Stockpickr's most popular portfolios, that of George Soros' Soros Fund Management. Soros decreased his position by 35.2% in the most-recent quarter, to 2.2 million shares.

    Stock Overview: Yahoo! is a global Internet brand. It has a market of $21.6 billion and a 3.1 short interest ratio, and it trades at a P/E of 18.4.

    Analyst Ratings: Of 34 analysts covering the stock, 16 rate it a buy, 17 rate it a hold, and one rates it a sell. TheStreet Ratings has a C+ hold rating on the stock.

    More on Yahoo!: Yahoo! was one of Barclays' 30 best stock picks for 2011, and Scott Rothbort recently highlighted it as one of several stocks that could benefit from M&A in 2011.

     

    9. Semiconductor HOLDRs


    Appaloosa maintained a 1.7 million-share position in ETF Semiconductor HOLDRs (SMH), comprising 1.1% of the total portfolio as of the most-recent reporting period.

    Fund Overview: The trust seeks to hold common stock of companies considered to be involved in the semiconductor business. These companies manufacture and market integrated circuitry and other products made from semiconductors which allow for increased speed and functionality in components for computers and other electronic devices. Its top holdings include Texas Instruments (TXN), Intel (INTC) and Applied Materials (AMAT).

    Analyst Ratings: TheStreet Ratings has a C+ hold rating Semiconductor HOLDRs.

    8. Teradyne


    Teradyne (TER) comprises 1.1% of Appaloosa's portfolio. The position of nearly 4 million shares represents a 290.8% increase from the past quarter.

    Stock Overview: Teradyne designs, develops, manufactures and sells automatic test systems and solutions used to test complex electronics in the consumer electronics, automotive, computing, telecommunications, aerospace and defense industries. It has a market of $3.3 billion and a 3.6 short interest ratio, and it trades at a P/E of 10.5.

    Analyst Ratings: Of 13 analysts covering the stock, nine rate it a buy, three rate it a hold, and one rates it a sell. TheStreet Ratings has a B- buy rating on the stock.

    More on Teradyne: According to Roberto Pedone, Teradyne's one of several stocks leading the market in 2011.

     

    7. KLA-Tencor


    KLA-Tencor (KLAC) comprises 1.4% of Appaloosa's portfolio. The position saw a 181.8% increase in the fourth quarter to 1.8 million shares.

    Stock Overview: KLA-Tencor is a supplier of process control and yield management solutions for the semiconductor and related nanoelectronics industries. It has a market of about $8 billion and a 1.7 short interest ratio, it yields 2.1%, and it trades at a P/E of 15.9.

    Analyst Ratings: Of 16 analysts covering the stock, seven rate it a buy, eight rate it a hold, and one rates it a sell. TheStreet Ratings has a B buy rating on the stock.

    More on KLA-Tencor: Frank Byrt recently highlighted KLA-Tencor in 5 Top Stocks for the 2011 Market Rally, a list of stocks with low valuations that are "growing at a fast enough pace to potentially attract new investors."

    6. Lam Research


    Tepper increased his position in Lam Research (LRCX) by 319.4% in the fourth quarter to 1.5 million shares. The stock comprises 1.6% of Appaloosa's portfolio as of Dec. 31.

    Stock Overview: Lam Research designs, manufactures & markets semiconductor processing equipment used in the fabrication of integrated circuits and are recognized as a major provider of such equipment to the worldwide semiconductor industry. It has a market of $6.7 billion and a 1.3 short interest ratio, and it trades at a P/E of 10.1.

    Analyst Ratings: Of 14 analysts covering the stock, seven rate it a buy, four rate it a hold, and three rate it a sell. TheStreet Ratings has a B buy rating on the stock, earning it a spot on the top-rated semiconductor stocks list.

    More on Lam Research: At the end of January, Roberto Pedone flagged Lam Research as one of three stocks setting up to break out.

    5. Cisco

    Cisco (CSCO) comprises 2.5% of Appaloosa's portfolio. Tepper boosted his position by 0.6% to 6.1 million shares in the fourth quarter.

    Cisco also shows up in D.E. Shaw's portfolio, at 0.6% of the total. The 9.5 million-share position was a 119% increase over the previous quarter. Eddie Lampert's ESL Investments initiated a new 6.4 million-share position in the stock, for 1.4% of the total portfolio.

    Stock Overview: Cisco Systems designs, manufactures and sells Internet Protocol based networking and other products related to the communications and information technology industry and provides services associated with these products and their use. It has a market of $103 billion and a 0.8 short interest ratio, and it trades at a P/E of 14.1.

    Analyst Ratings: Of 36 analysts covering the stock, 20 rate it a buy, 15 rate it a hold, and one rates it a sell. TheStreet Ratings has a B- rating on the stock.

    More on Cisco: Cisco is also one of Tepper's nine favorite Dow stocks, as well as one of five tech stocks left out of the rally.

    4. Applied Materials

    Applied Materials (AMAT) comprises 2.6% of Appaloosa's portfolio. At 9.1 million shares as of Dec. 31, the position represents a 141.7% increase over the previous quarter.

    As of the most-recent reporting period, Ken Fisher's Fisher Asset Management held 39.5 million shares of Applied Materials, comprising 1.6% of the total portfolio, and Arnold Van Den Berg's Century Management held 2.8 million shares, for 3.3% of the total portfolio.

    Stock Overview: Applied Materials provides Nanomanufacturing Technology solutions for the global semiconductor, flat panel display, solar and related industries, with a broad portfolio of innovative equipment, service and software products. It has a market of $20.7 billion and a 1.2 short interest ratio, it yields 1.8%, and it trades at a P/E of 22.4.

    Analyst Ratings: Of 21 analysts covering the stock, six rate it a buy, 13 rate it a hold, and two rate it a sell. TheStreet Ratings has a B- buy rating on the stock.

    More on Applied Materials: Applied Materials was one of Morningstar's five-star large-cap stocks for 2011. It showed up on a recent list of S&P 500 stocks with large insider selling.

     

    3. Micron


    Tepper scooped up 17.8 million shares of Micron (MU) in the fourth quarter, a new position that comprises 2.9% of Appaloosa's portfolio.

    Tepper wasn't the only one buying Micron in the most-recent period. Donald Smith at Donald Smith & Co. increased its position in the stock by 1.5% to 16.1 million shares.

    Stock Overview: Micron Technology is a global manufacturer and marketer of DRAM, NAND flash memory, CMOS image sensors and other semiconductor components.. It has a market of $10.9 billion and a 1.7 short interest ratio, and it trades at a P/E of 6.2.

    Analyst Ratings: Of 20 analysts covering the stock, 16 rate it a buy, three rate it a hold, and one rates it a sell. TheStreet Ratings has a C hold rating on the stock.

    More on Micron: Micron was one of the 10 worst-performing S&P 500 stocks of 2010. Roberto Pedone recently highlighted it as one of seven stocks leading the market in 2011.

    2. Microsoft

    Microsoft (MSFT) comprises 3.4% of Appaloosa's portfolio. Tepper boosted his number of shares of Cisco by 115.7% in the fourth quarter to about 6 million.

    Shumway Capital Partners initiated a new 7.8 million-share position in Microsoft in the most-recent quarter, which comprises 2.8% of the total portfolio. Omega Advisors, run by Leon Cooperman, increased its position by 195.7% to 3.4 million shares, for 2.4% of the total portfolio.

    Stock Overview: Microsoft is engaged in developing, manufacturing, licensing and supporting a range of software products and services for different types of computing devices. It has a market of $223.4 billion and a 1.2 short interest ratio, it yields 2.4%, and it trades at a P/E of 11.3.

    Analyst Ratings: Of 31 analysts covering the stock, 22 rate it a buy, and nine rate it a hold. TheStreet Ratings has a B buy rating on the stock.

    More on Microsoft: Microsoft was one of Jefferies' six top tech stocks for 2011, and recently Scott Moritz highlighted it as one of five tech stocks left out of the rally. It showed up on a recent list of S&P 500 stocks with notable insider activity.

     

    1. Hewlett-Packard

    Hewlett-Packard (HPQ) comprises 5% of Appaloosa's portfolio. In the fourth quarter, Tepper increased his position in the stock by 56.9% to 5.8 million shares.

    HP also shows up in Renaissance Technologies' portfolio, with a 3.1 million-share position, for 0.5% of the total portfolio. Bill Miller's Legg Mason Capital Management holds 5.6 million shares, for 1.9% of the total portfolio.

    Stock Overview: Hewlett-Packard is a global provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses and large enterprises, including customers in the government, health and education sectors. It has a market of $104.9 billion and a 1.3 short interest ratio, it yields 0.7%, and it trades at a P/E of 13.1.

    Analyst Ratings: Of 34 analysts covering the stock, 28 rate it a buy, five rate it a hold, and one rates it a sell. TheStreet Ratings has a B buy rating on the stock, earning it a spot on the top-rated computer hardware stocks list.

    More on Hewlett-Packard: HP is also one of Tepper's nine favorite Dow stocks. According to Jake Lynch, it's one of 16 Dow stocks trading at five-year discounts. Louis Navellier recently flagged it as one of 11 blue-chip stocks to consider selling.

    To see these stocks in action, check out the Tepper's Top Tech Stocks portfolio, and to see Tepper's top 30 holdings, visit the Appaloosa Management portfolio on Stockpickr.

    -- Written by Rebecca Corvino in New York.

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