Invest like David Tepper: What’s in his portfolio and how to follow his stock picks

Who is David Tepper and what is his investment style?

David Tepper is the founder and president of Appaloosa Management, a hedge fund he launched in 1993 after building his career in distressed debt investing. Tepper is widely recognized for his opportunistic, macro-aware approach and his willingness to shift exposure as market conditions, valuations and policy environments change.

Tepper invests primarily through Appaloosa Management, not as an individual investor. The firm maintains a relatively concentrated portfolio, with the top reported positions accounting for a substantial share of total assets. Recent 13F activity shows Appaloosa increasing, trimming and adding holdings over time in response to evolving market conditions and valuations.

A defining feature of Tepper’s style is flexibility. Over the years, he has moved between distressed credit, equities and macro-driven trades depending on where he sees the most attractive risk-reward opportunities. This adaptability has contributed to sustained attention from market participants and financial media.

Breaking down David Tepper’s Appaloosa portfolio

Based on Appaloosa Management’s most recent publicly disclosed SEC Form 13F-HR, for the period ending September 30, 2025 (filed November 13, 2025), the portfolio reflects a highly concentrated institutional strategy. The filing disclosed 45 equity positions with a total reported market value of approximately $7.38 billion. 

Top disclosed holdings and approximate weights

According to the filing, the largest reported equity positions included:

• Alphabet (GOOGL) ~18%
  Exposure to digital advertising, cloud computing and long-term technology innovation.
• Amazon (AMZN) ~14%
  Reflecting confidence in global e-commerce infrastructure and cloud services through Amazon Web Services (AWS).
• Meta Platforms (META) ~13%
  Exposure to digital advertising, platform monetization and long-term AI development.
• Microsoft (MSFT) ~11%
  Linked to enterprise software, cloud infrastructure and AI-related growth.
• Apple (AAPL) ~9%
  Representing consumer technology, ecosystem lock-in and global brand strength.

Important note: Holdings and allocations may change over time and don’t necessarily represent current positions. Due to reporting delays, private transactions and additional strategies not captured in 13F filings, this portfolio can’t be perfectly replicated and is provided for educational context only.

AI and technology exposure

Technology and AI-related companies represent a significant portion of Appaloosa’s disclosed equity exposure. In a CNBC interview, however, Tepper expressed caution about the sustainability of AI-driven growth, noting uncertainty about infrastructure and next-generation technology needed to support increased artificial intelligence demand.

China stock exposure

Appaloosa has been notably active in Chinese equities in recent years. It has disclosed positions in companies such as Alibaba, PDD and JD.com, as well as exposure through China-focused ETFs at various points.

These investments have typically been tied to valuation dislocations and policy shifts rather than long-term structural commitments. Tepper has also reduced or exited exposure when sentiment or regulatory conditions changed, highlighting his willingness to rotate quickly.

Energy and cyclical plays

Energy and cyclical stocks have appeared in Appaloosa’s publicly disclosed portfolio from time to time. Holdings such as Energy Transfer LP and cyclical names like Whirlpool Corp, American Airlines and Goodyear Tire & Rubber have been reported in 13F filings during periods of broader economic rotation.

Tepper’s recent and notable investments through Appaloosa

Over his career, Tepper has experienced both successes and challenges with Appaloosa. In 2009, Appaloosa Management’s hedge fund earned about $7 billion by buying distressed financial stocks early in the market downturn and profiting as valuations recovered, illustrating his opportunistic, high-risk approach.

More recently, Appaloosa’s publicly disclosed filings show continued adjustments across major sectors in response to interest-rate expectations, fiscal policy and broader economic trends. These shifts – which have included adjustments to large-cap technology positions, Chinese equities and select cyclical names – highlight both the potential upside and complexity of his approach.

It’s important to note that Appaloosa’s disclosed holdings reflect institutional decisions at specific points in time and may not capture hedges, derivatives or positions outside 13F reporting requirements.

David Tepper’s investing strategy explained

Appaloosa Management’s strategy emphasizes flexibility, valuation awareness and macroeconomic positioning. Portfolio exposure is adjusted based on factors such as interest rates, economic growth, fiscal policy and valuation.

Key characteristics include:

• Flexibility across asset classes.
• High conviction in a limited number of positions.
• Active risk management, including willingness to exit positions quickly.
• Comfort with volatility, particularly during market stress.

This approach generally requires significant resources, experience and access, making it difficult for individual investors to replicate directly. For most investors, the takeaway is to understand the principles rather than copying trades outright.

How to follow David Tepper’s approach using Crypto.com Whale Baskets

While Appaloosa Management’s exact portfolio can’t be replicated, investors can explore Tepper-inspired principles using tools like Crypto.com Whale Baskets.

Whale Baskets are not designed to mirror Appaloosa’s exact holdings. Instead, they enable investors to follow publicly disclosed portfolios of well-known figures and institutions, and to gain structured exposure to market themes using transparent, accessible tools.

• Structured exposure: Baskets are ranked across 3-month, 6-month and 1-year performance windows.
• Theme-based alignment: Certain baskets emphasise technology, industrials or cyclical sectors.
• Ongoing rebalancing: Alerts notify investors when baskets are updated.
• Accessibility: Simplifies diversified exposure without individual stock selection.

Learn how to invest in the US

Pros and cons of following billionaire investing styles

Potential benefits

1. May provide insight into investment frameworks

Reviewing how well-known investors structure their portfolios can offer insight into different approaches to portfolio construction, risk management and long-term positioning, without implying that these structures are suitable for everyone.

2. Can create macro and valuation awareness

Observing how institutional investors respond to economic conditions, interest-rate environments and valuation changes may help readers better understand how macro factors can influence capital allocation decisions.

3. Emphasizes flexibility in changing market conditions

Studying portfolio adjustments over time can reinforce the importance of remaining flexible and responsive to changing market conditions, rather than relying on a fixed or static investment approach.

Potential downsides

1. Portfolio disclosures are delayed

Public filings are released after reporting periods end, meaning disclosed holdings may not reflect current positions or recent changes in strategy.

2. Institutional strategies may not translate directly

Large investment firms often have access to tools, liquidity and risk-management techniques that aren’t available to individual investors, which can limit the relevance of direct comparisons.

3. High concentration can increase risk

While all investments carry risk, highly focused portfolios may experience larger swings in value. This level of volatility may not align with every investor’s objectives or risk tolerance.

FAQs about David Tepper’s investments

What are David Tepper’s main investments?

David Tepper invests through Appaloosa Management. The firm’s holdings change over time and are disclosed in its SEC Form 13F filings.

Does David Tepper invest in AI stocks?

Appaloosa has disclosed positions in large technology companies associated with AI, cloud computing and digital platforms. These exposures have changed over time based on valuation and broader economic conditions.

Does Tepper invest in China stocks?

Yes, Appaloosa has held Chinese equities and China-focused ETFs at various points, according to public filings. These positions have been adjusted over time and reflect institutional investment decisions rather than fixed allocations.

Can I replicate David Tepper’s portfolio?

No. Appaloosa’s filings are delayed and may not reflect current positions. Plus, institutional strategies can’t be perfectly replicated. 

What are Whale Baskets?

Whale Baskets are curated stock groupings on Crypto.com that use publicly disclosed portfolio data from institutions like Appaloosa to provide structured exposure to market themes.

This is informational content sponsored by Crypto.com and should not be considered as investment advice.

By using the term ‘baskets’, Foris Capital is not adopting the FINRA 4210 ‘baskets’ definition; we are using it to generically describe the groupings of stocks designated as ‘Whale Baskets’

Even with publicly available data, it's impossible to perfectly replicate an individual's portfolio. There might be lag times in reporting, private investments that aren't disclosed, and strategic decisions that go beyond simple stock ownership. Past performance of these stock baskets, or the performance of the referenced individuals' portfolios, is not indicative of future results.

These baskets are provided for informational purposes only and is not a solicitation or a recommendation of any individual investment nor is it for any investment strategy. There is no guarantee that these stock baskets will replicate or outperform the performance of any individual's portfolio or the market overall.  Furthermore, the investment decisions of individuals are complex and may involve factors not reflected in these stock baskets (e.g., access to private deals, equity options, different time horizons, unique risk tolerance).