UPDATE: Tepper's Appaloosa Management Boosts Bets On Banks

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(Updates with more information from filing)



By David Benoit


Of DOW JONES NEWSWIRES



NEW YORK -(Dow Jones)- Appaloosa Management LP, the New Jersey hedge fund run
by investor David Tepper, increased its bets on the four biggest U.S. banks
during the fourth quarter and now holds more than $1.23 billion combined in the
banks, according to a filing with the Securities and Exchange Commission.


Among its moves, the fund more than doubled its stake in Citigroup Inc. (C) to
more than 117 million shares, a holding that at Monday's closing price would be
worth $576.9 million.


The fund also reported a new stake in J.P. Morgan Chase & Co. (JPM) worth $
25.2 million. Its stake in Bank of America Corp. (BAC) rose 12% to 25.1 million
shares, a value of $373.3 million, while its stake in Wells Fargo & Co. (WFC)
rose to 7.5 million common shares from 6.4 million and 335,482 preferred shares
from 292,019. The common stake in Wells Fargo would be worth $252.7 million at
Monday's close.


The fund also boosted its stake in SunTrust Banks Inc. (STI) by 8.9% to 4.2
million, valued at $135.6 million and slightly raised its holdings in American
Depositary Receipts of Spain's Banco Santander SA (STD).


The fund trimmed its holdings in Fifth Third Bancorp (FITB) by 8.4% to 9.5
million shares worth $146.8 million. It also cut its stake in Capital One
Financial Corp. (COF) common shares to 1.03 million, or $54.1 million, from 1.43
million shares.


Tepper specializes in distressed-debt investing and manages around $16
billion. He had a strong year in 2010 after turning optimistic about U.S. stocks
before many hedge-fund rivals and according to the Wall Street Journal made
between $2 billion and $3 billion personally last year.


Tepper correctly anticipated the Federal Reserve's recent efforts to boost the
economy, steps that have helped the market rally. The increased stake in Citi
follows a highly publicized Citi investment by John Paulson of Paulson & Co.,
who took an early bet on Citi. All told, Paulson wound up making $5 billion
personally in 2010 profits.


Among the other big moves for Appaloosa's quarter were increases in airline
holdings, including a 55% increase to its stake in AMR Corp. (AMR), to 4.7
million shares, along with boosts to US Airways Group Inc. (LCC) and Delta Air
Lines Inc. (DAL).


There were new stakes in General Motors Co. (GM), worth $50.1 million; Dean
Foods Co. (DF), worth $106 million as of Monday's close; Manitowoc Co. (MTW),
worth $23.8 million; Safeway Inc. (SWY), worth $2.9 million; and Kroger Co. (KR)
, worth $3 million.


Appaloosa also made some large investments in technology stocks including a
new $206.7 million stake in Micron Technology Inc. (MU). Its stake in Microsoft
Corp. (MSFT) more than doubled to $164.5 million while its stake in Hewlett-
Packard Co. (HPQ) was up 57% to $282.3 million.


Among the stakes that were eliminated were WellPoint Inc. (WLP) and CNO
Financial Group Inc. (CNO). The filing also showed no holdings of American
International Group Inc. (AIG) securities.


Many investors who manage more than $100 million are required to disclose most
securities holdings within a month and a half of the end of a quarter. The
filings give the public a relatively fresh look at the portfolios of well-known
investors.



-By David Benoit, Dow Jones Newswires; 212-416-2458; david.benoit@dowjones.com