Every quarter, many money managers have to disclose what they've bought and sold, via 13F filings. Their latest moves can shine a bright light on smart stock picks.
Today let's look at Appaloosa Management, founded by investing giant David Tepper and known for investing in the debt of companies in distress. Tepper's investing history includes debt and stock in companies such as Enron and Worldcom. He made billions on bank stocks in 2009 after they had imploded and before they recovered. More recently, he invested in many housing-related companies.
Why should you look at Appaloosa Management's moves? Well, according to the folks at GuruFocus.com, Appaloosa gained a whopping 1,335% in the first decade of this century, compared with just 16% for the S&P 500.
The company's reportable stock portfolio totaled $3.2 billion in value as of June 30, 2012. Its top three holdings, representing 34% of the portfolio's total value, were PowerShares QQQ (a Nasdaq-focused ETF), Apple, and Citigroup.
So what does Appaloosa's latest quarterly 13F filing tell us? Here are a few interesting details:
New holdings include Lam Research
Among holdings in which Appaloosa increased its stake were Fusion-io
Appaloosa reduced its stake in companies such as Nuance Communications
Finally, Appaloosa unloaded several positions, including CVR Energy
We should never blindly copy any investor's moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing. 13F forms can be great places to find intriguing candidates for our portfolios.