Core Viewpoint - David Tepper's Appaloosa Management significantly reduced its holdings in Chinese stocks like Alibaba and JD while increasing its investment in UnitedHealth Group, showcasing a contrarian investment strategy [1][2][3]. Group 1: Investment Actions - Appaloosa reduced its Alibaba holdings by over 20% to 7.1 million shares, valued at approximately $802 million, making Alibaba still the largest position in the fund [1]. - The fund also cut its JD position by 13%, Baidu by 19%, and more than 50% of its position in Pinduoduo [2]. - In contrast, Appaloosa increased its stake in UnitedHealth Group by 2.3 million shares, valued at $764 million, making it the second-largest holding in the fund's $6.45 billion stock portfolio, accounting for about 11.9% [2]. Group 2: Market Reactions and Context - UnitedHealth's stock price fell approximately 40% in the second quarter, making it one of the worst performers in the S&P 500, amid the company's suspension of annual forecasts, CEO change, and a criminal investigation for alleged insurance fraud [2]. - Following the news of Appaloosa's investment, UnitedHealth's stock price rose nearly 10% in after-hours trading [3]. Group 3: Other Notable Investments - Warren Buffett's Berkshire Hathaway also purchased 5 million shares of UnitedHealth in the second quarter, while reducing its stakes in Bank of America and Apple [4].