The Smart Money: David Tepper
Source: SilverIsdead Via Flickr
Plays to Focus On: Facebook, Kinder Morgan, Energy Transfer Partners, Williams Partners, Alerian MLP ETF
Distressed debt specialist David Tepper has been one of the most successful investors in the business over the past decade. He made out like a bandit in 2009 by buying distressed financial stocks, and he’s been on a roll ever since.
Tepper also extended his big, fat, billionaire middle finger to the state of New Jersey earlier this year by relocating to no-income-tax Florida as a resident. Atta boy, David!
At any rate, Tepper had a busy quarter, starting with a major new purchase of Facebook (FB) stock. A glitzy growth name like Facebook would seem a little out of character for Tepper, but I can understand his reasoning. In a world where growth is scarce, fast-growing Facebook is a rarity.
Perhaps the biggest news is Tepper’s activity in the MLP space. He made a splash in the fourth quarter of last year by buying shares of beaten-down pipeline operators Kinder Morgan (KMI), Energy Transfer Partners (ETP) and Williams Partners (WPZ). He also initiated a small position in the Alerian MLP ETF (AMLP).
Well, Tepper apparently lost enthusiasm for Kinder Morgan in the first quarter, selling a little over half his position. But he massively backed up the truck and loaded up ETP, WPZ amd AMLP. He increased his position in Energy Transfer Partners by a whopping 214%, and ETP is now his largest stock position, making up over 9% of his portfolio. He upped his positions in Williams Partners and the Alerian MLP ETF by 458% and 134%, respectively.
Between ETP, WPZ, AMLP and KMI, midstream pipeline stocks now make up a combined 18% of his portfolio.
Source: Investor Place