Monday, May 16, 2016
David Tepper dumps Apple
Hedge fund billionaire David Tepper has dumped his massive Apple investment, according to a filing with the SEC.
Tepper had previously held 1.26 million shares, last valued around $133 million, according to data from Bloomberg.
This is just another huge hedge fund to dump the technology giant.
Carl Icahn announced on April 28that he had sold all of his shares of Apple because of concerns over growth in China. Greenlight Capital's David Einhorn has also been decreasing his stake for some time.
This is a stunning turnaround, as hedge funds have long loved Apple stock. As of August 2015, 146 of the 833 hedge funds tracked by Goldman Sachs had the company as one of their largest positions. This earned the iPhone maker the No. 2 spot on Goldman's list of stocks "most loved" by hedge funds.
Since then, however, Apple has been faced with slowing iPhone sales and disappointing earnings, sending the stock lower. In fact, the company lost its status as the most valuable in the world.
Tepper's fund, Appaloosa Management, also bought 945,000 shares of the troubled pharmaceutical company Valeant, worth $24.8 million during the first quarter. He has since sold the stake in the company, however, making a profit from the trade.
According to the filing, Tepper has also taken a new position in Facebook, buying 1.6 million shares in the first quarter, and Bank of America with 6.9 million shares.