Tepper also started new positions in several airlines. He bought 2.6 million shares of US Airways (LCC), 3 million shares of Delta Air Lines (DAL) and 3 million shares of UAL (UAUA), owner of United Air Lines.
Appaloosa remains heavily skewed toward financial stocks, devoting more than 80% of its common holdings to that sector. Tepper's bet on financials demonstrates confidence in the future profitability of the sector. That optimism may be tested if the Volcker Rule passes. These rules, proposed in January, would force Citigroup, Bank of America and Wells Fargo to dramatically change their operations and divest certain businesses, a process that could be costly to banks and devastating to Tepper's portfolio.
-- Reported by Jake Lynch in Boston.