David Tepper Stands by His China Bet, Reinforces Market Conviction

Billionaire investor David Tepper is known for his sharp market instincts and contrarian bets, often going against the grain when sentiment reaches extreme levels.

When he appeared on CNBC in late September, advocating for Chinese stocks and declaring that "everything" in China was worth buying—from ETFs to futures—it raised eyebrows. Given the history of promotional stock market calls, many investors questioned whether Tepper was talking up his book only to sell at a later date. However, his latest 13F filing suggests otherwise.

Backing His Words with Capital

Tepper's latest regulatory disclosure confirms that he did not sell off his Chinese positions after his bullish media appearance. Instead, he doubled down, adding to his stakes in various Chinese equities while simultaneously reducing exposure to U.S. stocks. His largest holding, Alibaba Group (BABA), has now surpassed $1 billion in value, reflecting his firm belief in the potential upside of Chinese markets.

Beyond Alibaba, Tepper’s hedge fund, Appaloosa Management, also increased its positions in several notable stocks, including semiconductor giant ASML, energy firm NRG, ride-sharing platform Uber, and telecommunications company EXE. These purchases reinforce the view that Tepper is not merely making a short-term trade, but rather executing a carefully considered strategy aimed at long-term gains.

The Chinese Market Call: A Contrarian Play

At the time of Tepper's September appearance, investor sentiment toward China was overwhelmingly negative. Concerns about regulatory crackdowns, a faltering property sector, and geopolitical tensions had driven Chinese equities to multi-year lows. Despite these headwinds, Tepper saw an opportunity, pointing to ongoing Chinese stimulus efforts as a potential turning point for the market.

Yet, in the months following his call, Chinese stocks failed to gain much traction, leading to skepticism over whether his bullish stance was premature. However, a recent shift in market dynamics suggests that his thesis may be starting to play out.

Institutional Support Grows for China’s Recovery

Since the start of 2025, major institutions like Goldman Sachs and Deutsche Bank have issued increasingly optimistic outlooks on China. Goldman recently upgraded its view on Chinese equities, citing stronger-than-expected economic data and a more aggressive stance by the government to support economic growth.

Deutsche Bank echoed similar sentiments, highlighting China’s undervaluation compared to global peers and its potential for a rebound as fiscal and monetary policies take effect.

This growing institutional support validates Tepper's conviction and suggests that the worst may be behind for Chinese stocks.

A Long-Term Bet, Not a Quick Flip

One of the most striking aspects of Tepper's positioning is that, despite the slow-moving recovery in Chinese markets, he remains steadfast in his holdings. Investors often look for signs of high-profile managers exiting positions after public endorsements, but Tepper's 13F filing confirms that he is playing the long game.

Moreover, his fund's broader positioning indicates a strategic shift. While he has increased exposure to China, he has pared down some of his U.S. stock holdings. This suggests that he sees better risk-reward opportunities in Chinese markets, at least in the near to medium term.

Key Takeaways for Investors

Tepper's commitment to his China bet provides valuable insights for investors looking to navigate global markets. Here are some key takeaways:

1. Institutional Buying Power – With Goldman Sachs and Deutsche Bank now echoing Tepper’s bullish stance, China’s stock market could see more institutional inflows, further supporting a potential rally.

2. Long-Term Value Play – While China’s recovery has been slow, long-term investors like Tepper see fundamental value in the market. Alibaba’s valuation, for example, remains historically low, making it attractive for patient investors.

3. Diversification Matters – Tepper’s approach underscores the importance of diversifying geographically. As the U.S. market faces uncertainties over interest rates and economic growth, exposure to international markets like China could provide a hedge.

4. Following Smart Money – While investors should always conduct their own due diligence, watching high-profile managers like Tepper can provide useful insights into emerging investment themes. His continued China bet signals that there may still be room for upside.

Final Thoughts

David Tepper's latest moves reinforce the idea that he is not a short-term speculator but rather a high-conviction investor willing to hold through volatility. His unwavering stance on China, despite months of stagnation, suggests that he sees significant upside in the region.

With more institutional players now joining the bullish chorus, the tide could finally be turning for Chinese stocks. While risks remain—particularly geopolitical tensions and domestic policy shifts—investors looking for long-term opportunities may find Tepper’s strategy worth considering. If China’s economic momentum accelerates in the coming quarters, Tepper's patience may ultimately pay off in a big way.