Renowned hedge fund manager David Tepper demonstrated his contrarian investment approach once again in Q2, significantly increasing his stake in the embattled UnitedHealth while reducing positions in Chinese stocks.

According to 13F filings released on August 14, Tepper's Appaloosa Management added 2.3 million shares of UnitedHealth, bringing the position's value to $764 million.

The latest disclosure shows UnitedHealth now represents 11.9% of Appaloosa's $6.45 billion equity portfolio, making it the fund's second-largest holding after Alibaba. Coincidentally, Warren Buffett also established a position in UnitedHealth during the same period.

Meanwhile, Tepper significantly reduced holdings in Chinese stocks including Alibaba, JD.com, and PDD. Despite trimming more than 20% of his Alibaba position, the stock remains Appaloosa's top holding with approximately $802 million in value.

During Q2, Tepper also increased positions in NVIDIA (1.45 million shares/483%), Amazon (190,000 shares/7.6%), and Taiwan Semiconductor (755,000 shares/279.6%), while reducing stakes in Meta (150,000 shares/27%), Alphabet (510,000 shares/25%), Uber (450,000 shares/14%), and Lyft (1 million shares/11%).

**Contrarian Bet on UnitedHealth Aligns with Buffett**

Tepper's substantial increase in UnitedHealth exemplifies his trademark contrarian investment strategy.

During Q2, UnitedHealth shares plummeted approximately 40%, becoming one of the worst-performing stocks in the S&P 500. The company faced multiple crises, including suspending annual guidance, changing CEOs, and reportedly facing criminal investigation for Medicare fraud.

UnitedHealth stated in July that it was cooperating with a Department of Justice investigation and remained "confident" in its business operations. Amid this market panic, Tepper chose to significantly increase his position, bringing holdings to $764 million, representing 11.9% of his portfolio.

Notably, Buffett's Berkshire Hathaway also disclosed a new position in UnitedHealth during the same period. Berkshire established a new stake of over 5 million shares, valued at nearly $1.6 billion at quarter-end.

The synchronized moves by investment titans Tepper and Buffett boosted market confidence, with UnitedHealth shares rising nearly 10% in after-hours trading.

**Major Reduction in Chinese Stocks, Alibaba Maintains Top Spot**

Although Tepper had contrarian success buying Chinese stocks when other investors fled last year, he chose to significantly reduce related positions in Q2.

The MSCI China Index has gained approximately 46% over the past year, demonstrating the success of his previous Chinese stock bets. Against the backdrop of trade tensions impacting global markets, Tepper began reducing his Chinese stock exposure.

Analysis suggests this series of adjustments indicates that even Tepper, known for contrarian investing, is adopting a more cautious stance toward Chinese stock prospects.