David Tepper Scales Back China Exposure and Sells Out of Key Tech Giants

Core Insights - David Tepper's Appaloosa LP has significantly reduced its equity portfolio, indicating a cautious stance towards high-growth and technology-linked stocks while consolidating capital into core holdings with better risk-reward profiles [1][7] Reductions in Holdings - iShares China Large-Cap ETF (FXI): Reduced by 82.14%, selling 4.6 million shares and retaining 1 million, reflecting caution towards Chinese equities due to sluggish growth and regulatory uncertainty [2] - Oracle Corp (ORCL): Decreased by 78.57%, trimming 550,000 shares to hold 150,000, likely due to profit-taking after a strong rally and rising competition concerns [3] - PDD Holdings Inc (PDD): Cut by 54.23%, selling 2.37 million shares and retaining 2 million, indicating a tactical pullback from Chinese e-commerce amid geopolitical tensions [4] - Meta Platforms Inc (META): Reduced by 27.27%, cutting 150,000 shares to hold 400,000, signaling valuation discipline after a surge [5] - Alphabet Inc (GOOG): Decreased by 25.37%, selling 510,000 shares and retaining 1.5 million, reflecting portfolio rebalancing within large-cap tech [6] Full Exits - Appaloosa executed several full exits, including the liquidation of the SPDR S&P 500 Fossil Fuel Reserves ETF (SPYX), a $2.5 billion PUT position that constituted about 30% of the portfolio, and exited Apple (AAPL) with a $278 million PUT stake [8][9] - Other full exits included Wynn Resorts (WYNN), Las Vegas Sands (LVS), and Broadcom (AVGO), indicating profit-taking in leisure and semiconductor sectors after strong performance [9][10] Overall Strategy - Tepper's recent activity highlights a disciplined risk-management approach, focusing on high-liquidity, large-cap names while maintaining flexibility to redeploy capital towards higher-upside opportunities [7][10]