David Tepper’s Appaloosa revamps its portfolio, cutting semiconductor stocks – Advanced Micro Devices (NASDAQ:AMD), Amazon.com (NASDAQ:AMZN)

In recent investment strategy changes David Tepperhedge funds, Appaloosa LPmade significant changes to its portfolio.

what happened: The company’s latest 13F document shows that semiconductor holdings have decreased, while other tech stocks, including Oracle Corp. ORCL and Ark Innovation ETF (ARKK) has been added.

Appaloosa LP purchased 1.3 million shares worth approximately $140 million in Oracle Corp and received nearly 2.6 million ARK Innovation ETF calls worth more than $133 million in the fourth quarter of 2023. Hedge funds also establish new positions FMC Corp. FMC and General Motors General.

Investments have also been made in the housing renovation, construction and building materials industries and acquired stakes in companies such as companies Musco Maas,,,,, Mohawk Industries MHKand Owens Corning OC.

According to a report from Investopedia, Appaloosa (Appaloosa) includes Advanced Micro Devices AMD,,,,, Letter C stocks (GOOG), Qualcomm QCOM,,,,, Uber Technology Uberand Taiwan Semiconductor Manufacturing Company TSM. The largest sell-off involves nearly 1.7 million shares Intel Corporation INTC.

Also read: David Tepper

In addition to technology, the fund sells shares KE Holdings Inc. BakerMacy’s Department Store mand PDD Holdings Inc. PDD. Appaloosa, on the other hand, added its existing location Caesars Entertainment CZR,,,,, MPLX LP MPLX,,,,, Alibaba Group holds dad,,,,, Amazon Amznand Microsoft MSFT.

Hedge funds completely withdrew from two positions in the fourth quarter and sold Arista Network Anet and Corporate product partners EPD.

Why it matters: Appaloosa’s portfolio restructuring shows a strategic shift toward diversification. In the context of global chip shortage, a reduction in semiconductor holdings may be a cautious approach.

The increase in bets in other tech stocks and home improvement sectors suggests a focus on industries that have shown resilience during the pandemic. The fund’s new positions at FMC Corp. and General Motors Co. point to bets on the agricultural and automotive industries, respectively.

On the other hand, a sell-off may reflect an attempt to mitigate risks associated with a particular stock or sector.

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