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

NEW YORK (Stockpickr) -- Hedge fund star David Tepper gave a follow-up performance on CNBC's "Squawk Box" Friday morning to his September bullish comments, which are often credited with sparking a "David Tepper Rally." Indeed, his original prediction that stocks had nowhere to go but up came true, and all told, the S&P 500 gained about 13% in 2010.

It turns out Tepper's still bullish, though a bit more cautious than he was in September. "The economy is so much better now," he said, but "it's not a free ride in this market." He still thinks equities make for strong investments, singling out semiconductor stocks, including Micron (MU), as well as Dean Foods (DF).

"We are at a higher level but pretty darn good," Tepper said. "You can't be too negative, but you can't be uncautious."

 

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 Tepper's Appaloosa Management -- in particular his tech holdings, which received some of his biggest bets in the most-recently-reported quarter, ended Sept. 30.

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    Tepper increased his exposure to tech from 3.4% in the quarter ended June 30 to 15.1% in the third quarter, according to GuruFocus.com. Here's a closer look at some of Tepper's largest financial holdings as of his latest 13F filing with the SEC.

    7. KLA-Tencor

    Tepper initiated a new position in KLA-Tencor (KLAC) in the third quarter, scooping up 637,460 shares, at 0.7% of Appaloosa's total portfolio. As of the close on Sept. 30, 2010, when KLA-Tencor was trading at $35.23, the stock has risen to $42.13 as of Thursday's close, or more than 19% since Tepper's filing.

    Stock Overview: KLA-Tencor is a supplier of process control and yield management solutions for the semiconductor and related nanoelectronics industries. With a market cap of about $7 billion, it has traded in a 52-week range of $26.69 to $42.95, hitting that high on Jan. 18. The stock has a short interest ratio of 2.5, yields 2.4% and has a P/E ratio of 20.5.

    Analyst Ratings: Of 17 analysts covering the stock, seven rate it a buy, nine rate it a hold, and one rates it a sell. TheStreet Ratings has a B- buy rating on the stock.

    Earnings: KLA-Tencor is slated to report earnings on Jan. 27 for the most-recent quarter. Analysts expect the company to earn $1.06 a share in the most recent quarter, compared with 28 cents a share in the year-ago quarter.

    More on KLAC: Other holders of KLA-Tencor include Jean-Marie Eveillard at First Eagle Investment Management, at 1% of the total portfolio.

    6. Yahoo!

    Yahoo! (YHOO) comprises 1.2% of Tepper's portfolio as Sept. 30. His 2.8 million-share position was a 9.1% decrease from the previous quarter. Yahoo! closed at $14.17 on Sept. 30 and has risen 15.4% since, to close at $16.23 on Thursday.

    Stock Overview: Yahoo! is a global Internet brand. It is focused on powering its communities of users, advertisers, publishers and developers by creating indispensable experiences built on trust. With a market cap of $21.3 billion, it has traded in a 52-week range of $13.14 to $19.12. The stock has a short interest ratio of 4.7 and trades at a P/E ratio of 21.2.

    Analyst Ratings: Of 33 analysts covering the stock, 13 rate it a buy, 19 rate it a hold, and one rates it a sell. TheStreet Ratings has a C+ hold rating on the stock.

    Earnings: Yahoo! is slated to report earnings on Jan. 25. Analysts expect the company to earn 23 cents a share in the most recent quarter, compared with 11 cents a share in the year-ago quarter.

    More on Yahoo!: Yahoo! is one of the top holdings of George Soros, and Barclays named it one of the 30 best stock picks for 2011.

    5. Applied Materials

    As of Sept. 30, Tepper owns 3.8 million shares of Applied Materials (AMAT), at 1.3% of his total portfolio. Applied Materials was a new buy for Appaloosa in the third quarter. Since its Sept. 30 closing price of $11.68, the stock has gained nearly 30% to close at $15.06 on Thursday.

    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. With a market cap of $20.2 billion, it has traded in a 52-week range of $10.27 to $15.35, which it hit on Jan. 18. The stock has a short interest ratio of 2.1, yields 1.8% and trades at a P/E ratio of 21.8.

    Analyst Ratings: Of 22 analysts covering the stock, seven 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.

    Earnings: Applied Materials is slated to report earnings on Feb. 16. Analysts expect the company to earn 33 cents a share in the most recent quarter, compared with 13 cents a share in the year-ago quarter.

    More on Applied Materials: Other holders of Applied Materials include Arnold Van Den Berg and Ken Fisher.

    4. Semiconductor HOLDRs

    Yet another new position for Tepper in the third quarter was ETF Semiconductor HOLDRs (SMH), with 1.7 million shares comprising 1.4% of the total portfolio. The fund closed at $27.71 on Sept. 30 and has risen 22.2% since to $33.87 as of Thursday's close.

    Stock 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. The fund's top holdings include Texas Instruments (TXN), Intel (INTC) and Applied Materials. It has traded in a 52-week range of $24.14 to $34.64, which it hit on Jan. 18.

    Analyst Ratings: TheStreet Ratings has a C-hold rating on Semiconductors HOLDRs.

    3. Microsoft

    Tepper increased his holdings in Microsoft (MSFT) by more than 17% in the third quarter, to 2.8 million shares. The stock comprises 2.1% of his total portfolio as of Sept. 30. Since its Sept. 30 close of $24.49, the stock has gained 15.8% to $28.35 as of Thursday's close.

    Stock Overview: Microsoft is engaged in developing, manufacturing, licensing and supporting a range of software products and services for different types of computing devices. With a market cap of $243.6 billion, it has traded in a 52-week range of $22.73 to $31.58. The stock has a short interest ratio of 1.8, yields 2.2% and trades at a P/E ratio of 12.3.

    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.

    Earnings: Microsoft is slated to report earnings on Jan. 27 for the most-recent quarter. Analysts expect the company to earn 68 cents a share in the most recent quarter, compared with 74 cents a share in the year-ago quarter.

    More on Microsoft: Microsoft comprises 2.2% of Bill Miller's Legg Mason Capital portfolio and 1.4% of Ken Fisher's. According to Jake Lynch, Microsoft is one of 10 Dow stocks likely to boost dividends in 2011. It recently showed up on a list of stocks with large insider selling after insiders dumped 150,792 shares.

    2. Cisco

    Tepper also initiated a position in Cisco (CSCO) in the third quarter, picking up 6 million shares, for 3.9% exposure to the stock. Cisco closed at $21.90 on Sept. 30 and has since slid 5.2% to $20.77 as of Thursday's close.

    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. With a market cap of $115.4 billion, has traded in a 52-week range of $19 to $27.74. The stock has a short interest ratio of 0.6 and trades at a P/E ratio of 15.2.

    Analyst Ratings: Of 37 analysts covering the stock, 27 rate it a buy, nine rate it a hold, and one rates it a sell. TheStreet Ratings has a B- buy rating on the stock.

    Earnings: Cisco is slated to report earnings on Feb. 9 for the most-recent quarter. Analysts expect the company to earn 30 cents a share in the most recent quarter, compared with 35 cents a share in the year-ago quarter.

    More on Cisco: Other holders of Cisco include John Hussman and Ronald Muhlenkamp. It was one of the worst-performing Dow stocks of 2010, and it was on a recent list of stocks with large insider selling after insiders sold 200,000 shares.

    1. Hewlett-Packard

    Tepper's top financial holding is Hewlett-Packard (HPQ), another position he added in the third quarter. As of Sept. 30, he holds 3.7 million shares of the stock, comprising 4.7% of Appaloosa's total portfolio. HP has risen from $42.07 as of the Sept. 30 close to $46.78, or 11.2% since Tepper's filing.

    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. With a market cap of $101.5 billion, it has traded in a 52-week range of $37.32 to $54/75. The stock has a short interest ratio of 1.3, yields 0.7% and trades at a P/E ratio of 12.6.

    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.

    Earnings: HP is slated to report earnings on Feb. 22 for the most-recent quarter. Analysts expect the company to earn $1.28 a share in the most recent quarter, compared with $1.07 a share in the year-ago quarter.

    More on Hewlett-Packard: Other holders of HP include Mark Hillman's Hillman Capital and Lee Ainslee's Maverick Capital. Jake Lynch called HP one of the 10 best Dow dividend stocks for 2011, and it was one of Forester Value Fund manager Tom Forester's top value stocks for the new year.

    -- Written by Rebecca Corvino in New York.

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