Appaloosa released its quarterly 13F filing with the SEC on May 15th. Analyzing the recent performance of the firm’s holdings, I highlight their fastest growing stocks below.
Appaloosa’s Fastest Growing Stocks
Analysts often look at companies as either thriving, surviving or dying. Analyzing a company’s revenue growth can help distinguish between these stages. Growth of over 10% typically signifies the core business is doing very well and the company’s products and services are in demand.
The table below lists 7 stocks in Appaloosa’s portfolio that have strong top-line growth.
| Ticker | Name | Revenue Growth | % Of Portfolio |
|---|---|---|---|
| KNX | KNIGHT SWIFT TRANSN HLDGS IN | 712.9% | 0.5% |
| LNG | CHENIERE ENERGY INC | 173.5% | 0.5% |
| MU | MICRON TECHNOLOGY INC | 75.5% | 19.2% |
| BABA | ALIBABA GROUP HLDG LTD | 59.0% | 7.7% |
| WMIH | WMIH CORP | 53.9% | 0.0% |
| CZR | CAESARS ENTMT CORP | 50.5% | 1.5% |
| FB | FACEBOOK INC | 47.2% | 10.3% |
Swift Transportation Company (NYSE: KNX) is the fastest growing company in Appaloosa’s portfolio. The company’s LTM total revenue of $4,145 million is up 712.9% year-over-year. Very impressive. Note that the stock price is up 13.6% over the last twelve months.
Cheniere Energy, Inc. (NYSE: LNG) appears to be the second highest growth stock in the portfolio. The company’s latest top-line improvement of 173.5% is very intriguing. With 75.5% LTM sales growth, Micron Technology, Inc. (NASDAQ: MU) is the third fastest growing company in David Tepper’s portfolio.
Other notable growth stocks include Alibaba Group Holding Limited (NYSE: BABA), WMIH Corp. (NASDAQ: WMIH), Caesars Entertainment Corporation (NASDAQ: CZR) and Facebook, Inc. (NASDAQ: FB).
Final Thoughts
Hedge fund managers may seem to be a dime a dozen, but not many of them have had a stock market rally named after them. Billionaire David Alan Tepper, founder and portfolio manager at Appaloosa Management L.P., is the exception, having inspired what’s been dubbed the Tepper Rally of 2010.
Through his macro view of the financial markets, Tepper was able to predict not only the stock market rally but the catalysts behind it which ultimately proved to be the Fed’s stimulus.
Then in February 2009, his fund bought distressed financial stocks such as Bank of America(NYSE: BAC) when they were at their bottom. The sector quickly recovered later in the year and Tepper reportedly made $7 billion. This ultimately helped him become the top-earning hedge fund in 2009.
With such an impressive track record, it is worth it for individual investors to take a closer look at his portfolio and the stocks listed above.
Managers with more than $100 million in qualifying assets under management are required to disclose their holdings to the SEC each quarter via 13F filings. Qualifying assets include long positions in U.S. equities and ADRs, call/put options, and convertible debt securities. Shorts, cash positions, foreign investments and other assets are not included. It is important to note that these filings are due 45 days after the quarter end date. Therefore, Appaloosa’s holdings above represent positions held as of March 31st and not necessarily reflective of the fund’s current stock holdings.
However, most can agree that with thousands of stocks traded on U.S. exchanges, doing thorough research on each one is nearly impossible for smaller investors. Leveraging the resources of the largest hedge funds on Wall Street can be a powerful way to narrow down the list.
The ideas section of finbox.io tracks top investors and trending investment themes. You can get the latest data on the holdings discussed above at the Appaloosa page.
As of this writing, I did not hold a position in any of the aforementioned securities and this is not a buy or sell recommendation on any security mentioned.
