Appaloosa Management, the hedge fund run by billionaire investor David Tepper, filed its Q2 2026 13F on August 14, revealing complete exits from 12 stock positions as of June 30, 2026.
The full exit list includes SanDisk (NASDAQ: SNDK), Corning (NYSE: GLW), PDD Holdings (NASDAQ: PDD), JD.com (NASDAQ: JD), L3Harris Technologies (NYSE: LHX), and RTX (NYSE: RTX), along with Ball Corporation, Microsoft (NASDAQ: MSFT), UnitedHealth, Lyft (NASDAQ: LYFT), Deutsche Bank, and the KraneShares CSI China Internet ETF (NYSEARCA: KWEB).
The pattern across the list suggests a fund consolidating broad thematic bets into higher-conviction single-name positions rather than spreading exposure across entire sectors.
Perhaps the most striking exit is SanDisk, given that Bloomberg reported Appaloosa returned 32% in the first half of 2026 driven substantially by memory-chip makers.
SanDisk had posted a five-quarter EPS beat streak, reported Q4 FY2026 revenue of $8.97 billion, achieved a gross margin of 84.6%, and issued a long-term framework forecasting non-GAAP gross margins of 80% between 2028 and 2030.
The stock was up 591.34% year-to-date through August 14, though it has since pulled back significantly from its June 30 price of $2,273.73, trading at $1,641.11 as of the filing date.
Tepper’s defense exit is equally notable, with both RTX and L3Harris liquidated entirely in the same quarter despite RTX raising its FY2026 EPS guidance to $7.10-$7.25 and L3Harris signing a seven-year THAAD/PAC-3 framework worth approximately $12 billion in future production revenue.
There is no defense replacement in the portfolio, making this the cleanest sectoral break in the filing, with no partial position or substitute name left standing in its place.
On China, Tepper exited PDD, JD.com, and the KWEB ETF entirely, while also trimming his Alibaba stake by 1,465,000 shares, representing a broad-based pullback from Chinese internet exposure.
However, he moved in the opposite direction with Baidu (NASDAQ: BIDU), adding 602,900 shares to bring his total stake to 1,295,000 shares valued at $148,005,550, with Baidu reporting GPU Cloud revenue growth of 184% year-over-year and AI-powered business crossing 52% of its general business revenue.
Tepper also retained his Micron (NASDAQ: MU) position, trimming by 690,000 shares but holding 975,000 shares valued at $1,125,432,750, one of Appaloosa’s largest disclosed positions, with Micron citing 16 Strategic Customer Agreements and $100 billion in remaining performance obligations.
Micron has described floor prices under those agreements as delivering margins “well above our peak quarterly margins in any past cycle,” underscoring why Tepper may have chosen to stay rather than exit the memory trade entirely.
Performance since June 30 has been mixed across the exited names, with RTX rallying 17.9% and Lyft climbing 19.64% since the quarter closed, suggesting those exits may prove costly in hindsight.
Corning has fallen 35.02% since June 30, validating that particular exit, while Baidu, the position Tepper added to, has declined 9.29% since the quarter ended.
Investors should treat this data with appropriate caution, as 13F filings reflect point-in-time holdings disclosed roughly 45 days after the quarter closes and do not necessarily represent current positions or directional market views.
