Billionaire David Tepper returned investors an astounding 132% net of fees in 2009 and 21% in 2010, and heading into 2011, the New Jersey-based fund manager remained bullish, telling CNBC last month that he’s “cautious but optimistic” about equity markets and the economy. Given Tepper’s outlook, his recently disclosed end-of-2010 equity holdings, which show a big move back into the financial sector, are in focus.
A look at Appaloosa Management’s top-15 U.S.-listed equity holdings from across all its funds at the end of 2010 shows that Tepper was adding to his finanacials exposure. During Q4, the firm added to stakes in Bank of America (BAC), SunTrust Banks (STI), Wells Fargo (WFC), and Citigroup (C), the firm’s largest, U.S.-listed, equity holding at the end of 2010. The moves reversed Tepper’s selling bias in the segment during Q3.
BAC has so far been a sad story for me, refusing to yield me a profit. However, I am expecting that give another quarter, or two, its share price should be higher. Its trend has changed from down to up, so the wait is worthwhile.
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