BOSTON (TheStreet) -- Billionaire hedge fund manager David Tepper of Appaloosa Management is again dumping the same bank stocks that made him a fortune in 2009 and moving into beaten-down companies Oracle (ORCL) and Boston Scientific (BSX).Thanks to prescient bets on Bank of America ( BAC) and Citigroup ( C), Tepper's flagship fund more than doubled in 2009 after the market meltdown that was spurred by the collapse in financial stocks.
|David Tepper (Appaloosa Management)|
General Motors ( GM) Company Profile: General Motors is the world's largest automaker by sales, having emerged from Chapter 11 bankruptcy protection in 2009. Tepper's Investment: While the fund cut its entire stake in Dana Holding ( DAN), Appaloosa picked up more GM warrants in the fourth quarter, a stake that represents less than 1% of Tepper's disclosed portfolio. Share Price Performance: Although Tepper's fund doesn't own the actual common shares, GM's stock has performed solidly this year, up 25% already.
Delphi Automotive ( DLPH) Company Profile: Delphi is the world's largest supplier of auto parts. After a Chapter 11 bankruptcy filing, Delphi went public again in November. Tepper's Investment: Appaloosa initiated a new position in Delphi during the quarter, buying 229,000 shares. The stake carried a market value of $4.9 million as of Dec. 31. Overall, the position represents less than 1% of Tepper's disclosed portfolio. Share Price Performance: Since the IPO, Delphi shares are up 36%, likely making the pick a winner for Tepper. The stock is up 35% since Dec. 31.
Oracle ( ORCL) Company Profile: Oracle is the third-largest software company in the world, developing database management tools for clients. Tepper's Investment: Appaloosa bought 1.2 million shares of Oracle in the fourth quarter, a stake that carried a market value of $31.2 million as of Dec. 31. Overall, the position represents 4% of Tepper's disclosed portfolio, making it his sixth largest position. Share Price Performance: Oracle shares sank more than 18% last year, but the stock has rallied more than 10% since Dec. 31.