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David Tepper's Big Bets: China & AI

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David Tepper is an Investing Legend

Billionaire investing legend David Tepper is known in Wall Street circles for his unique investing attributes and his traits, which include:

1.       Contrarian Investing Technique: How do you beat the crowd? Fade the crowd. Following the the 2008 Global Financial Crisis fallout, most investors licked their wounds. Not David Tepper. Tepper bought positions in some of the most hated and beaten-down stocks of the time, including Las Vegas Sands ((LVS - Free Report) ) and Bank of America ((BAC - Free Report) ).

2.       High Conviction Bets: It’s one thing to make contrarian bets; it’s a whole different thing to have the intestinal fortitude to see those bets through and hold them through the fear, uncertainty, and doubt.

3.       Gargantuan-Sized Bets: Tepper’s investing analysis often proves him correct, and as mentioned, he has a unique stomach to hold his bets for years. However, his gigantic bet size really sets him apart from other Wall Street money managers. Being right, holding tight, and betting in size is what made Tepper a multi-billionaire and allowed him to buy the Carolina Panthers football team.

What is David Tepper Trading Now?

A 13F disclosure is a quarterly filing regulators require for investment managers with > $100 million in AUM (which Tepper is). 13Fs give investors a unique view into what Wall Street’s brightest minds are investing in.

Tepper is Betting Big on China

There is no bigger contrarian bet on Wall Street than China. Until the past few months, Chinese stocks and the economy have been in the gutter as investors worry about a fledgling real estate sector, government regulations, and a potential trade war with the US. As expected, Tepper is fading the noise and taking the contrarian bet. Two of his largest positions are in Chinese stocks, including Alibaba ((BABA - Free Report) ) and JD.com ((JD - Free Report) ).

The two leading Chinese e-commerce giants represent ~20% of Tepper’s massive portfolio (BABA = 15%, JD + 5%). Tepper also added to Baidu ((BIDU - Free Report) ), the Chinese Google and a rising AI star.  The billionaire hedge fund manager’s conviction in China remains steadfast. In a TV interview Tepper was asked if he is hedging his Chinese bets or is worried about tariffs from the US and answered, “My hedge is I don’t care.” In addition to his individual China bets, Tepper also holds Chinese ETFs like the iShares China Large Cap ETF ((FXI - Free Report) ) and the KraneShares CSI China ETF ((KWEB - Free Report) ).

Tepper is Bullish on AI

Tepper’s top ten positions by weight are also filled with AI bets, including Microsoft ((MSFT - Free Report) ), Advanced Micro Devices ((AMD - Free Report) ), and Vistra ((VST - Free Report) ) (which he doubled). While the AI revolution has become a mainstream bet, AMD is currently beaten-down and is another classic Tepper bet.

Bottom Line

David Tepper’s success as an investing legend can be attributed to the rare combination of contrarian bets, unwavering conviction, and the gumption to make massive bets. Tepper’s latest bets include Chinese tech giants like BABA and JD.


 

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