Stock Quotes in this Article: BAC, HPQ, MRK, MSFT, PFE

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%.

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    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 five largest Dow stock holdings, based on Appaloosa's most recent quarterly 13F filing with the SEC, which reflects holdings as of June 30, 2011.

     

    5. Merck

    In the most recently reported period, Appaloosa decreased its position in Merck (MRK) by 6%, but the stock remains one of its top 30 holdings. The fund owns 2.1 million shares as of June 30, a position that comprises 1.8% of the total portfolio.

    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 $98.4 billion and a 2.2 short interest ratio, and it trades with a P/E of 34. The stock yields 4.8%, making it one of the highest-yielding drug stocks.

    Analyst Ratings: Of 18 analysts covering the stock, 14 rate it a buy, and four rate it a hold. TheStreet Ratings has an B buy rating on Merck.

    More on Merck: Merck was featured in September lists of 10 Hep C Stocks on Wall Street's Watch List and 10 Buy-Rated Dividend Stocks.

     

    4. Microsoft

    In the most recently reported period, Appaloosa decreased its position in Microsoft (MSFT) by 17.5%, leaving 3.9 million shares in the fund's portfolio. That position comprises 2.4% of Appaloosa Management as of June 30.

    Microsoft is a popular holding among Stockpickr's professional portfolios, including that of Seth Klarman's Baupost Group, which holds 12 million shares as of June 30. It's also one of the top holdings 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 $227.9 billion and a 1.8 short interest ratio, and it trades with a P/E of 10. The stock yields 3%, making it one of the top-yielding computer software and services stocks.

    Analyst Ratings: Of 24 analysts covering the stock, 16 rate it a buy, and eight rate it a hold. TheStreet Ratings has a B buy rating on Microsoft.

    More on Microsoft: Microsoft was featured last month on a list of 5 Cheap Blue-Chip Tech Stocks.

     

    3. Hewlett-Packard

    Appaloosa decreased its position in Hewlett-Packard (HPQ) in the most recently reported quarter by 54.8%, to 2.9 million shares. The stock comprises 2.5% of the total portfolio.

    Hewlett-Packard is also a holding in Bill Miller's Legg Mason Capital Management portfolio with a 4.4 million-share position that comprises 1.6% 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 cap of $51.5 billion and a short interest ratio of 0.9, and it trades with a P/E of 6.1. The stock yields 1.9%, making it one of the top-yielding computer hardware stocks.

    Analyst Ratings: Of 27 analysts covering the stock, eight rate it a buy, 13 rate it a hold, and six rate it a sell. TheStreet Ratings has C hold rating on Microsoft, earning it a spot on the top-rated computer hardware stocks list.

    More on Hewlett-Packard: HP shows up on a recent list of 3 Beaten-Down Giants Ready to Rebound and was featured recently in "5 Trading Setups to Ride This Rally."

     

    2. Bank of America

    Tepper also cut his stake in Bank of America (BAC) in the first quarter, by 41.9%, but his fund still holds 10 million shares, comprising 2.6% of the total portfolio.

    Bank of America shows up in various Stockpickr professional portfolios, including that of John Paulson's Paulson & Co., with a 60.4 million-share position.

    Stock Overview: Bank of America is a bank holding and a financial holding company that, 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 $64.6 billion and a 0.7 short interest ratio, and it yields 0.6%.

    Analyst Ratings: Of 23 analysts covering the stock, nine rate it a buy, 13 rate it a hold, and one rates it a sell. TheStreet Ratings has D sell rating on Bank of America.

     

    More on Bank of America: Bank of America shows up on recent lists of 10 Bargain Stocks Under $10 and 6 Bank Stocks That Could Rally.

     

    1. Pfizer

    Appaloosa decreased its position in holding Pfizer (PFE) by 6% in the most recently reported quarter, to 14.5 million shares. The stock remains the portfolio's second-largest holding, comprising 7.1% of the total.

    Pfizer is also a holding of Lee Ainslie's Maverick Capital, with 19.9 million shares, and David Einhorn's Greenlight Capital, with 23.5 million shares. Pfizer also shows up on a list of 12 Top Health Care Picks for Hedge Funds for the most recently reported period.

    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 $147.1 billion and a short interest ratio of 2.4, and it trades with a P/E of 17.5. The stock yields 4.2%, making it one of the highest-yielding drug stocks .

    Analyst Ratings: Of 16 analysts covering the stock, 175rate it a buy, and one rates it a hold. TheStreet Ratings has B buy rating on Pfizer.

    More on Pfizer: Pfizer shows up on a recent list of 10 Dividend Stocks for '30-Year' Investors.

    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.

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