According to current portfolio statistics, a Premium feature of GuruFocus, the top-performing five companies in David Tepper (Trades, Portfolio)’s equity portfolio as of Friday are Antero Resources Corp. (AR, Financial), Energy Transfer LP (ET, Financial), Alphabet Inc. (GOOGL, Financial)(GOOG, Financial), Western Midstream Partners LP (WES, Financial) and Occidental Petroleum Corp. (OXY, Financial).
U.S. markets finish July down, but still finishes the month with a gain
On Friday, the Dow Jones Industrial Average closed at 34,935.47, down 149.06 points from the previous close of 35,084.53. Despite volatility increasing amid concerns of economic recovery in the face of the surging Covid-19 cases due to the delta variant, the 30-stock index gained 1.3% for the month.
Users can download guru portfolios using GuruFocus Excel Add-In’s GURUG function
GuruFocus’ Excel Add-In, one of several tools for Premium and Premium Plus users, allows users to download GuruFocus data directly into Excel. The GURU UDF Library contains four functions as of Friday: GURUF for stock financial data, GURUG for guru trades and portfolio data, GURUE for economic indicator data and the new GURUI function for industry overview data.
Figure 1 illustrates the pop-up wizard for the GURUG function.
Figure 1
As Figure 1 illustrates, the GURUG function contains the following parameters:
- Guru: Enter the name that you wish to retrieve guru trade or portfolio information for.
- Action: Select from Buy, Add, Reduce, Sell or Portfolio.
- Start Date: Retrieve the guru trades that took place since the date entered.
- Example: Enter 2019-01-01 to view the guru’s trades starting from the first quarter of 2019.
- Warning: Do not enter a date range; otherwise, the function will return an error. Additionally, the “start date” field is required if action is buy, add, reduce or sell.
- If Action = “Portfolio”, an empty Start Date outputs the guru’s current / most-recent quarterly portfolio. Otherwise, enter a date to view the guru’s portfolio for that quarter.
- Display Items: Enter the columns that you wish to download. Leave the field blank if you wish to download all available columns.
- Show Caption: Enter “Y / Yes” to display the data with table headers or “N / No” to display the data without the table headers.
- Transpose: Enter “H / Horizontal” to display the stocks as rows or “V / Vertical” to display the stocks as columns.
- Display Order: Enter “A / ASC” to display the trades from newest to oldest, just like how it is displayed on the website by default. Enter “D / DESC” to display the trades in the other order.
Users can then add additional columns to the output using the other functions, including GURUF for stock data like price, total return metrics, financial strength metrics and profitability metrics; and GURUI for industry-overview data. The GURUG output includes the stock symbol and industry, allowing the incorporation of GURUF and GURUI functions.
Guru background and portfolio overview
Tepper became interested in stock investing as a young boy watching his father trade stocks in his hometown of Pittsburgh. A distressed-debt specialist, the guru founded New Jersey-based Appaloosa Management in 1993. Appaloosa averaged returns of over 26% per year since inception, among the top-performing gurus according to the Score Board of Gurus.
Tepper announced plans to convert his firm into a family office in 2019. As of the March-quarter filing, Appaloosa’s $6.96 billion equity portfolio contains 62 stocks with a turnover ratio of 14%. The top four holdings in terms of weight are communication services, consumer cyclical, technology and energy, representing 29.30%, 18.47%, 16.73% and 12.16% of the equity portfolio.
Antero Resources
Appaloosa owns 2.96 million shares of Antero Resources (AR, Financial), giving the position 0.43% equity portfolio weight. Shares traded around $13.46, up approximately 149.72% in the year to date yet significantly overvalued based on Friday’s price-to-GF Value ratio of 1.99.
GuruFocus ranks the Denver-based energy company’s profitability 4 out of 10 on the back of profit margins and returns underperforming more than 60% of global competitors.
Antero’s financial strength ranks 2 out of 10 on several warning signs, which include a weak Altman Z-score of 0.29 and a debt-to-equity ratio that underperforms over 66% of global energy companies.
Other gurus with holdings in Antero include Jim Simons (Trades, Portfolio)’ Renaissance Technologies, Glenn Greenberg (Trades, Portfolio)’s Brave Warrior Advisors and Alan Fournier (Trades, Portfolio)’s Pennant Advisors.
Energy Transfer
Appaloosa owns 22,820,328 shares of Energy Transfer (ET, Financial), giving the position 2.52% weight in the equity portfolio. Shares traded around $9.86, up approximately 66.26% in the year to date yet significantly overvalued based on Friday’s price-to-GF Value ratio of 1.33.
GuruFocus ranks the Dallas-based energy company’s profitability 6 out of 10 on the back of profit margins and returns outperforming more than 75% of global competitors despite three-year revenue and earnings decline rates underperforming over 70% of global energy companies.
Alphabet
Appaloosa owns 231,000 shares of Alphabet (GOOGL, Financial)(GOOG, Financial), giving the position 6.86% weight in the equity portfolio. Shares traded around $2,701.85, up approximately 55.88% in the year to date yet significantly overvalued based on Friday’s price-to-GF Value ratio of 1.53.
GuruFocus ranks the Mountain View, California-based online search giant’s profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank and profit margins and returns outperforming more than 82% of global competitors.
Western Midstream Partners
Appaloosa owns 936,932 shares of Western Midstream Partners (WES, Financial), giving the position 0.25% weight in the equity portfolio. Shares traded around $19.99, up approximately 55.32% in the year to date yet modestly overvalued based on Friday’s price-to-GF Value ratio of 1.21.
GuruFocus ranks the Woodlands, Texas-based energy company’s profitability 7 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8 and profit margins and returns outperforming more than 90% of global competitors.
Despite strong profit margins, Western Midstream’s three-year revenue and earnings growth rates underperform over 70% of global energy companies.
Occidental Petroleum
Appaloosa owns 8.395 million shares of Occidental Petroleum (OXY, Financial), giving the position 3.21% weight in the equity portfolio. Shares traded around $26.10, up approximately 54.82% in the year to date yet remains modestly undervalued based on Friday’s price-to-GF-Value ratio of 0.72.
GuruFocus ranks the Houston-based energy company’s financial strength 3 out of 10 on several warning signs, which include a low Piotroski F-score of 3 and debt ratios that underperform more than 80% of global competitors.
