Renowned investor David Tepper recently disclosed his firm's portfolio updates for the second quarter of 2023, which ended on June 30, 2023. Tepper, known for his value-oriented investment philosophy, manages a diverse portfolio of 39 stocks with a total value of $5.39 billion. The top holdings in the portfolio were NVIDIA Corp (NVDA, Financial), Meta Platforms Inc (META), and Microsoft Corp (MSFT, Financial), representing 8.01%, 8.00%, and 7.84% of the portfolio respectively.
Top Trades of Q2 2023
Tepper's most significant trades during the quarter involved NVIDIA Corp, Alibaba Group Holding Ltd, and Constellation Energy Corp. Here's a closer look at these transactions.
NVIDIA Corp (NAS:NVDA)
During the quarter, Tepper purchased 870,000 shares of NVIDIA, bringing the total holding to 1,020,000 shares. This trade had a 6.83% impact on the equity portfolio. The stock traded for an average price of $331.15 during the quarter. As of August 14, 2023, NVIDIA's stock price was $437.53, with a market cap of $1,080.70 billion. The stock has returned 133.68% over the past year. GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 10 out of 10. In terms of valuation, NVIDIA has a price-earnings ratio of 227.88, a price-book ratio of 44.11, a PEG ratio of 11.75, a EV-to-Ebitda ratio of 156.22, and a price-sales ratio of 42.18.
Alibaba Group Holding Ltd (NYSE:BABA)
Tepper also increased his stake in Alibaba Group Holding Ltd, buying 4,375,000 shares for a total holding of 4,475,000 shares. This trade had a 6.77% impact on the equity portfolio. The stock traded for an average price of $87.76 during the quarter. As of August 14, 2023, Alibaba's stock price was $93.46, with a market cap of $238.02 billion. The stock has returned -1.32% over the past year. GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 9 out of 10. In terms of valuation, Alibaba has a price-earnings ratio of 20.23, a price-book ratio of 1.68, a PEG ratio of 18.39, a EV-to-Ebitda ratio of 9.36, and a price-sales ratio of 1.90.
Constellation Energy Corp (NAS:CEG)
On the other hand, Tepper reduced his investment in Constellation Energy Corp by 1,590,000 shares, which had a 6.6% impact on the equity portfolio. The stock traded for an average price of $82.83 during the quarter. As of August 14, 2023, Constellation Energy's stock price was $107, with a market cap of $34.41 billion. The stock has returned 32.78% over the past year. GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 3 out of 10. In terms of valuation, Constellation Energy has a price-earnings ratio of 44.88, a price-book ratio of 3.06, a EV-to-Ebitda ratio of 11.63, and a price-sales ratio of 1.32.
In conclusion, David Tepper (Trades, Portfolio)'s Q2 2023 portfolio update reveals a strategic focus on technology and energy sectors, with significant investments in NVIDIA, Alibaba, and Constellation Energy. These trades reflect Tepper's value-oriented investment philosophy, which emphasizes financial strength, profitability, and reasonable valuation.
