Billionaire hedge fund manager David Tepper’s Appaloosa Management closed out 12 positions entirely in its Q2 2026 13F filing submitted on August 14, 2026.
The full exit list as of June 30, 2026 includes SanDisk (NASDAQ: SNDK), Corning (NYSE: GLW), PDD Holdings (NASDAQ: PDD), JD.com (NASDAQ: JD), and L3Harris Technologies (NYSE: LHX).
Appaloosa also exited RTX (NYSE: RTX), Ball Corporation, Microsoft (NASDAQ: MSFT), the KraneShares CSI China Internet ETF (NYSEARCA: KWEB), UnitedHealth, Lyft (NASDAQ: LYFT), and Deutsche Bank entirely.
The pattern across these exits suggests a fund narrowing sprawling thematic bets down to single-name conviction plays rather than a broad retreat from risk.
The SanDisk exit stands out most sharply given that Bloomberg reported Appaloosa returned 32% in the first half of 2026, driven heavily by memory-chip makers.
SanDisk was up 591.34% year-to-date through August 14, posting Q4 FY2026 revenue of $8.97 billion, gross margins of 84.6%, and a five-quarter consecutive EPS beat streak before Tepper walked away.
Tepper’s exit would have appeared well-timed as the stock imploded through July, though shares have since rebounded, and SanDisk’s long-term framework forecasts non-GAAP gross margins of 80% in the 2028 to 2030 period.
The paired defense exits are also notable, with RTX and L3Harris both going to zero held shares in the same quarter despite RTX raising its FY2026 EPS guidance to $7.10 to $7.25.
L3Harris had signed a seven-year THAAD/PAC-3 framework worth approximately $12 billion of future production revenue at the time Tepper closed the position.
On China, Tepper exited PDD, JD.com, and the KWEB ETF entirely, while also trimming his Alibaba stake by 1,465,000 shares in the same quarter.
What Tepper kept is equally revealing, as he retained 975,000 shares of Micron (NASDAQ: MU) valued at $1,125,432,750, one of his largest disclosed positions, even after trimming 690,000 shares.
Micron offers 16 Strategic Customer Agreements with $100 billion in RPO and floor prices delivering margins “well above our peak quarterly margins in any past cycle.”
On China, Tepper added 602,900 shares to Baidu (NASDAQ: BIDU), bringing that stake to 1,295,000 shares valued at $148,005,550, signaling continued conviction in selective Chinese AI names.
Baidu’s GPU Cloud revenue rose 184% year-over-year, with AI-powered business crossing 52% of Baidu General Business revenue, providing one of the cleaner AI growth narratives in the Chinese market.
Performance since quarter-end has been mixed, with SanDisk still trading below its June 30 price of $2,273.73, while RTX has rallied 17.9% and Lyft has climbed 19.64% since the quarter closed.
GLW has fallen 35.02% since June 30, making that exit look prescient, while Baidu has declined 9.29% since the end of the second quarter.
Investors should treat this data with appropriate context, as 13F filings reflect point-in-time holdings as of June 30, disclosed roughly 45 days later, and may not represent current positions.
Funds exit positions for tax, liquidity, and portfolio-construction reasons, meaning a full exit does not automatically constitute a bearish long-term view on a company.
The structural signal from Appaloosa’s Q2 activity is clear: Tepper is maintaining memory exposure through Micron while reducing breadth, and has exited defense entirely with no replacement position added.
