MW Remember Tepper's 'everything' rant on China? Panthers owner cut stakes in Alibaba and other Chinese firms.

By Steve Goldstein

Sometimes even the most committed investors lose faith.

Appaloosa Management founder David Tepper appeared on CNBC in September, and said he was buying whatever China stocks he could find after the government announced stimulus measures, no matter the risk of tariffs. "Everything. Everything," Tepper said then. "ETFs. Futures. Everything. Everything.".

During the first quarter, however, the Carolina Panthers owner trimmed those positions back - about 20% reductions in Alibaba $(BABA)$, PDD $(PDD)$ and JD.com $(JD)$ and a nearly 50% reduction in Baidu $(BIDU)$, according to the latest 13-F filing at the Securities and Exchange Commission covering the first quarter. He similarly reduced his holdings in the iShares China large-cap ETF FXI and the KraneShares CSI China Internet ETF KWEB.

Whether it was the tariff threat that finally got to Tepper wasn't clear. It could also have been profit taking.

The iShares China large-cap ETF FXI peaked on March 17, slumped in early April, and like many assets then started rising again.

"Now, with valuations higher and new uncertainties emerging, Tepper is locking in some gains and de-risking," said Bruno Schneller, managing partner at Erlen Capital Management, a Swiss asset manager.

"The fund's reduction in Alibaba, JD, and other internet names -- while still maintaining sizable positions -- suggests caution about near-term volatility even as Appaloosa remains invested in China's long-term story."

Schneller said other hedge funds also began reversing course on China by late in the first quarter, scaling back positions after a surge in February. Soros Fund Management exited its stake entirely in Alibaba entirely in the first quarter, as did Philippe Laffont's Coatue Management at the end of 2024, he said.

So-called "Liberation Day" came after the first quarter, on April 2, but President Donald Trump had already started to increase tariffs on China - first a 10% tariff announced in February, and then a doubling in March. They're now back at 30%, for at least a 90-day period as the two sides agreed to negotiate.

Appaloosa also doubled its stake in Uber Technologies $(UBER)$ and bought Deutsche Bank $(DB)$, perhaps a play on German stimulus measures, the 13-F filing shows. It also bought U.S. defense contractor L3Harris Technologies $(LHX)$.

Appaloosa also bought a put on the SPDR S&P 500 Fossil Fuel Reserves Free ETF SPYX, which is basically the S&P 500 minus oil companies, as well as a put on Apple $(AAPL)$, while increasing stakes in Meta Platforms $(META)$ and Alphabet $(GOOGL)$.

A put gives the owner the right but not the obligation to sell an asset and can be used as either a hedge or an outright bet that an asset will fall.

-Steve Goldstein

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May 16, 2025 04:53 ET (08:53 GMT)

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