Q2 2025 marks Tepper’s most dramatic strategic shift with UnitedHealth Group becoming the second-largest position at 11.85% of the portfolio. This massive new healthcare bet, combined with additions in Delta Air Lines, United Airlines, Whirlpool, and energy infrastructure positions, signals a defensive pivot toward sectors with strong cash flows, pricing power, and demographic tailwinds. The healthcare thesis appears centered on aging demographics and integrated care delivery models.

After dramatically reducing chip exposure in Q1, Tepper executed a major re-entry into semiconductors with Nvidia surging to 4.29% (+483%) and Taiwan Semiconductor reaching 3.60% as a new position. Combined with Micron Technology (+106%) and maintained Intel and Qualcomm positions, this represents renewed conviction in AI chip demand and potential valuation opportunities post-correction. The focus on both AI training (Nvidia) and manufacturing (TSM) suggests a comprehensive semiconductor thesis.

The systematic reduction in Chinese positions continued with Alibaba dropping from 21.92% to 12.43%, Pinduoduo falling from 9.29% to 3.25%, and FXI China ETF dramatically reduced by 82%. JD.com and KE Holdings also saw meaningful cuts. This coordinated reduction suggests ongoing profit-taking and risk management around China exposure, though substantial positions remain, indicating selective rather than wholesale abandonment of the China thesis.

The combination of Vistra Corp (5.41%) and NRG Energy (4.93%) as top-5 positions creates a nearly 10% allocation to power generation and retail electricity. This energy infrastructure theme likely capitalizes on AI-driven electricity demand, data center growth, and the companies’ strong cash flow generation capabilities. The positions represent a play on both traditional energy needs and the emerging power requirements of the digital economy.