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David Tepper's Top 5 Dow Stocks - 11659 views
NEW YORK (Stockpickr) -- At Stockpickr, we track the top 30 holdings of a variety of high-profile investors, such as George Soros and Carl Icahn.
One of the most popular portfolios we track is that of David Tepper's Appaloosa Management. Over the past few years, Tepper has shot to hedge fund stardom. In 2009, his bets in the troubled financial sector led his fund to more than double. In 2010, he predicted that stocks had nowhere to go but up, and the S&P 500 complied, ending 2010 up about 13%.
Though he made a name for himself at least in part by investing in stocks that others might have considered risky at the time, his portfolio is home to its fair share of blue-chip favorites. Today, we're taking a closer look at Tepper's top 5 Dow stock holdings, based on Appaloosa's most recent quarterly 13F filing with the SEC, which reflects holdings as of March 31, 2011.
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In the most recently reported period, Appaloosa decreased its position in Merck (MRK) by 39%, but the stock remains one of its top 30 holdings. The fund owned 2.3 million shares as of March 31, a position that comprised 1.8% of the total portfolio.
Merck also shows up in Dodge & Cox's portfolio, with 61.2 million shares held, as well as the portfolio of Chris Davis' Davis Selected Advisers, with a 56.5 million-share position.
Stock Overview: Merck is a global research-driven pharmaceutical company that discovers, develops, manufactures and markets a range of innovative products to improve human and animal health. It has a market cap of $110.5 billion and a 1.7 short interest ratio, and it trades with a P/E of 67.4. The stock yields 4.2%, making it one of the highest-yielding drug stocks.
Analyst Ratings: Of 20 analysts covering the stock, 14 rate it a buy, and six rate it a hold. TheStreet Ratings has an B- buy rating on Merck.
In the most recently reported period, Appaloosa decreased its position in Microsoft (MSFT) by 20.8%, with 4.8 million shares remaining in the fund's portfolio. That position comprises 2.9% of Appaloosa Management as of March 31.
Microsoft is a popular holding among Stockpickr's professional portfolios, including that of Renaissance Technologies, which holds 4.1 million shares as of March 31. It's also the top holding of Whitney Tilson's T2 Partners.
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 cap of $232.2 billion and a 1.1 short interest ratio, and it trades with a P/E of 11. The stock yields 2.3%, making it one of the top-yielding computer software and services stocks.
Analyst Ratings: Of 29 analysts covering the stock, 19 rate it a buy, and 10 rate it a hold. TheStreet Ratings has a B buy rating on Microsoft.
3. Bank of America
Tepper also cut his stake in Bank of America (BAC) in the first quarter, by 31.3%, but his fund still holds 17.2 million shares, and the stock is one of its top five holdings, comprising 5.5% of the total.
Stock Overview: Bank of America is a bank holding and a financial holding company, which through its subsidiaries, provides banking and nonbanking financial services and products throughout the U.S. and in selected international markets. It has a market cap of $96.97 billion and a 0.6 short interest ratio, and it yields 0.4%.
Analyst Ratings: Of 25 analysts covering the stock, 13 rate it a buy, and 13 rate it a hold. TheStreet Ratings has C- hold rating on Bank of America.
Appaloosa increased its position in Hewlett-Packard (HPQ) in the most recently reported quarter, by 8.3%, to 6.3 million shares. The stock comprises 6.2% of the total portfolio.
Hewlett-Packard is also a holding in Bill Miller's Legg Mason Capital Management portfolio, and it showed up on lists of Paulson's 10 Best New Investment Ideas and Hedge Funds' Biggest Buys and Sells for the first quarter.
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 cap of $75.7 billion and a short interest ratio of 1, and it trades with a P/E of 8.8. The stock yields 1.3%, making it one of the top-yielding computer hardware stocks.
Analyst Ratings: Of 35 analysts covering the stock, 17 rate it a buy, 16 rate it a hold, and two rate it a sell. TheStreet Ratings has C hold rating on Microsoft, earning it a spot on the top-rated computer hardware stocks list.
Appaloosa decreased its position in Pfizer (PFE) by 6.9% in the most recently reported quarter, to 15.4 million shares. The stock is the portfolio's second largest holding, comprising 7.4% of the total.
Stock Overview: Pfizer is a research-based global pharmaceutical company which discovers, develops, manufactures and markets prescription medicines for humans and animals. It has a market cap of $157.5 billion and a short interest ratio of 1.2, and it trades with a P/E of 18.8. The stock yields 4%, making it one of the highest-yielding drug stocks .
Analyst Ratings: Of 19 analysts covering the stock, 17 rate it a buy, and two rate it a hold. TheStreet Ratings has B buy rating on Pfizer.
To see these stocks in action, visit the David Tepper's Top 5 Dow Stocks portfolio.
For Tepper's top 30 holdings, visit Appaloosa Management's portfolio on Stockpickr.