Tepper’s Appaloosa Adds to Pipeline Partnerships and Dumps Apple

  • Hedge fund manager cut his holding in General Motors by 80%
  • Facebook was Tepper’s biggest new buy in the first quarter

David Alan Tepper.

Photographer: Victor J. Blue/Bloomberg

David Tepper’s Appaloosa Management increased its stake in pipeline partnerships and sold out of its holding in Apple Inc. in the first quarter.

The firm’s biggest additions were to Energy Transfer Partners LP, a stake valued at about $523 million as of the end of March, and Williams Partners LP, a $271 million position, according to a regulatory filing on Friday.

Energy Transfer has climbed 9.2 percent this year with dividends reinvested, while Williams Partners has returned almost 17 percent. The partnerships’ two parents were set to merge until earlier this month, when Energy Transfer Equity’s chief executive warned that the deal might fall apart because of an unresolved tax issue. Both shares rose on the news. Brent crude oil has climbed from a low of about $28 a barrel in January to almost $48 today, helping energy stocks.

Tepper’s largest new purchase of the quarter was Facebook Inc., a holding that was valued at $186 million at the end of March.

One of his biggest selloffs was Apple Inc. The iPhone maker’s stock climbed modestly in the first quarter, but tumbled in late April after the company reported its first quarterly revenue drop in more than a decade. The shares are now down 13 percent this year, including dividends.

Tepper reduced his stake in General Motors Co. by about 80 percent to a holding valued at $75 million as of March 31. He’s held the stake in the carmaker since early 2012.

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