Billionaire David Tepper's Top Stock Picks

In mid May, Appaloosa Management -- a hedge fund managed by billionaire David Tepper -- filed its 13F with the SEC. While the information in these filings is a bit old -- this most recent wave discloses many of a manager's long equity positions as of the end of March -- we have actually found that investors can use them to develop investing strategies (for example, the most popular small cap stocks among hedge funds generate an average excess return of 18 percentage points per year). We can also treat picks from 13Fs as free investment ideas, doing more research on any names which seem interesting. Read on for our take on Tepper's five largest holdings by market value, see the full 13F on the SEC's website, and compare these picks to those in previous filings.

Tepper and his team's largest position was 8.5 million shares of Citigroup (C). The megabank's stock price has risen nearly 90% in the last year, though we still see Citi trading at a discount to the book value of its equity with a P/B ratio of 0.8. We would note that the bank has not done too well in earnings terms on a trailing basis, particularly compared to some of its peers, but Wall Street analysts expect Citigroup to perform in line with its industry going forward and as a result the forward P/E is 9....398 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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