Billionaire David Tepper Sells Lyft in Favor of Its Biggest Rival, Which Has 30% Upside, According to Wall Street
Tepper's hedge fund has finally liquidated its position in Lyft and just doubled down on Uber.
Overview
After a stint on the high-yield desk at Goldman Sachs, David Tepper launched the hedge fund Appaloosa Management in the early 1990s. Over the last couple of decades, Tepper has generated an average annual return in the mid to high 20% range -- highlighted by an outsize performance in 2009 after he bought distressed bank securities near their lows during the financial crisis.
Combined with his ownership of the Carolina Panthers football team, Tepper's fortune has made him an investment personality whose moves are dissected for clues about the market's direction. During the second quarter, Appaloosa's 13F filing with the Securities and Exchange Commission showed that the firm fully exited its position in Lyft (NASDAQ: LYFT) while simultaneously adding more than 1.3 million shares of its ride-hailing rival, Uber Technologies (NYSE: UBER). Uber is now one of Appaloosa's five largest positions, representing about 7% of the portfolio.
Details
Investors watching Tepper closely see this transaction as more than a simple rotation. Rather, it reflects a calculated judgment about relative competitive strength and long-term value creation in an intense ridesharing and delivery landscape.
Source
Originally published at www.fool.com.