David Tepper’s Appaloosa Sells Broadcom, Qualcomm, and Tesla

David Tepper’s Appaloosa LP exits position in chip maker Broadcom after 18% year to date rally, while the billionaire investor has also taken advantage of massive share price gains of payment services companies.

David Tepper trimmed its stake in PayPal and Square during the third quarter, according to the latest 13F filings. The hedge fund investors also reduced stake in China-based online retailer Alibaba to 2.22 million shares from 3.38 million shares.

David Tepper’s hedge fund slashed tech stocks

Appaloosa hedge fund has lowered its stake in several tech companies during the September quarter. The sale of tech stocks could be the outcome of the massive tech rally in the past three quarters.

The fund has lowered its stake in Alphabet, Amazon, and Alibaba during the third quarter. The hedge fund also took advantage of share price gains of Salesforce, Adobe, and Netflix.

Meanwhile, the billionaire stock market investor added to its Microsoft stake, increasing the stake to 1.12% of the portfolio from 0.98% in the previous quarter. Microsoft is among the best tech performers amid its sustainable double-digit revenue growth potential.

The firm also expressed confidence in Micron Technology, adding 2,900,000 shares to its existing position – representing a 31% increase from the previous stake. Micron Technology accounts for 10.17% of the Appaloosa portfolio. Shares of Micron soared almost 30% in the past six months.

David Tepper exited Broadcom, Qualcomm, and Tesla

The firm has exited positions in several high growth companies during the third quarter. The sale of the stake could indicate the strategy of capitalizing on gains.

Broadcom stock jumped almost 41% in the past six months while shares of Qualcomm grew 63% since the beginning of this year. Meanwhile, Tesla stock is among the biggest gainers as its shares grew 400% so far this year. Humana stock is sold out during the third quarter.