Monday, 28 July 2014
Last updated 6 hours ago
Feb 15 2011 | 8:26am ET
Appaloosa Management, David Tepper’s New Jersey-based hedge fund, is bullish on banks, according to a recent filing with the Securities and Exchange Commission.
The fund now holds stakes worth a combined $1.23 billion in the four biggest U.S. banks, having increased its holdings in the fourth quarter.
Appaloosa more than doubled its Citigroup stake to over 117 million shares (worth $576.9 million at Monday’s closing price.
The fund acquired a $25.2 million stake in J.P. Morgan Chase while upping its Bank of America stake 12% to 25.1 million shares worth $373.3 million. Appaloosa increased its Wells Fargo stake to 7.5 million common shares (from 6.4 million) and 335,482 preferred shares (from 292,019). The common stake would be worth $252.7 million at Monday’s closing price.
Appaloosa increased its SunTrust Banks holding by 8.9% to 4.2 million shares valued at $135.6 million and reported a small increase in its holdings in American Depositary Receipts of Spain's Banco Santander.
The fund reduced its Fifth Third Bancorp holdings by 8.4% to 9.5 million shares (value: $146.8 million) and cut its Capital One Financial common shares to 1.03 million ($54.1 million) from 1.43 million.
Tepper’s fund focuses on distressed debt and manages around $16 billion.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…