In which stocks is the man who managed to time the market with SanDisk investing?
The esteemed hedge fund manager David Tepper, who heads the Appaloosa fund, executed a highly sophisticated investment move in the second quarter of the year. The latest report filed by the fund reveals that Appaloosa completely liquidated its holdings in the hottest stock on the market this year – SanDisk. The sale was carried out during an exceptional quarter in which the company's stock soared by 258%, just before it began to decline and wiped out about 31% of its value since the peak it set in June.
The esteemed hedge fund manager David Tepper, who heads the Appaloosa fund, executed a highly sophisticated investment move in the second quarter of the year. The latest report filed by the fund reveals that Appaloosa completely liquidated its holdings in the hottest stock on the market this year – SanDisk. The sale was carried out during an exceptional quarter in which the company's stock soared by 258%, just before it began to decline and wiped out about 31% of its value since the peak it set in June.
The numbers behind the giant realization
At the end of March, Appaloosa reported holding 281,250 shares of SanDisk, which were worth about 179 million dollars at the time and accounted for about 3% of its investment portfolio. Had the fund kept these shares until the end of June, their value would have reached about 640 million dollars. Tepper chose to realize the profits and exit the new position, which was built and liquidated within just about six months, as SanDisk did not appear at all in the fund's reports for the end of 2025.
Tepper's realization instinct was also triggered on his larger memory investment. During the quarter, Appaloosa sold 690,000 shares of the company Micron, thereby reducing its position in it by about 41%. Despite the massive sale, Micron's stock recorded a jump of more than 240% in that same quarter. As a result, the value of the stake remaining in the fund's hands doubled and reached about 1.13 billion dollars, which made Micron the second largest holding of Appaloosa.
So what is he investing in now?
The money freed up from the realization of the memory stocks was channeled by Tepper to companies that finance artificial intelligence infrastructure. The fund increased its holding in Amazon, which is its largest position, by 15% to a value of about 1.2 billion dollars. In addition, Appaloosa increased its holding in the chip manufacturer Taiwan Semiconductor by 24%, which became the third largest holding in the portfolio with a value of 788 million dollars. In total, the value of the fund's reported portfolio grew from 5.9 billion dollars to 7.7 billion dollars.
According to a report on the CNBC network, the story did not end there. Sources close to the matter stated that after the end of the second quarter, Tepper took advantage of the sharp declines in chip stocks – when SanDisk plummeted by more than 50% from its peak – and bought back a position even larger than the one he sold. This move presents Tepper as someone who knew how to take profits on time, wait for a correction in the markets, and return to invest at much more favorable prices.
