David Tepper on What’s Next for the Stock Market
David Tepper on What’s Next for the Stock Market
David Tepper bets on stocks near bankruptcy
David Tepper and his views on the markets and the economy are widely followed by the investment community. Tepper, founder of Appaloosa Management, manages over $23.5 billion worth of assets.
Tepper’s love for distressed equity is well-known. He’s known to buy into companies that are near bankruptcy, but have the potential to recover. He’s also known to invest in companies that have high amounts of revenue, and bet on companies he believes the government will keep afloat in the public’s best interest.
General Motors stock comprises 13.5% of his portfolio
A prominent example of Tepper’s investments is General Motors (GM), Tepper’s largest portfolio holding, making up 13.5% of his portfolio. Back in 2009, the US government bailed out GM with $49.5 billion. Over the past six years, the company has really spun around. GM is now one of the most profitable companies in the United States. Based on ROE (return on equity) GM is more profitable than over 40% of the companies in the S&P 500 (SPY), including General Electric (GE), Facebook (FB), AT&T (T), JPMorgan Chase (JPM), ExxonMobil (XOM), and Procter & Gamble (PG). We’ll discuss more on Tepper’s love for GM as we move further in this series. Currently, Tepper looks to be getting bearish on US equity.
On Friday, October 30, Tepper discussed what’s next for the stock market in his exclusive interview with CNBC. Let’s analyze his views on the current stock market in the next part of this series.
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