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Credit: Drew Angerer/Getty ImagesAccording to a recent filing, Hedge Fund Titan and Billionaire David Tepper have initiated a new position with a purchase of Disney stock in the 4th quarter of 2022.
Based on a Securities and Exchange Commission filing last week, Appaloosa Management LP, run by billionaire David Tepper, increased its holdings in The Walt Disney Company by 300,000 shares.
In the third quarter of 2022, Appaloosa shocked Wall Street investors when it no longer listed shares of Disney, which it reported having a 50,000-share stake in each in August of 2022. Along with The Walt Disney Company, Appaloosa also disclosed that they sold all of their holdings in another entertainment and streaming giant, Netflix, at the time.
In 2022, The Walt Disney Company dealt with story after story on Wall Street. Eventually, investors in Disney got fed up with debacle after debacle, which ultimately led to the firing of former CEO Bob Chapek.
Related: Disney Dubbed a “Favorite” By Investors Amid Firing Thousands of Employees
Unlike recent activist investors, Nelson Peltz, Appaloosa, and David Tepper are not typically investors who make investments in businesses and make sweeping demands for board of director seats or write letters questioning management decisions. For some, a reiniation in a purchase of Disney stock is a welcome sign that Wall Street is beginning to show confidence in the company again.
However, when Hedge Funds file these reports with the SEC, they typically decline to comment on why they have made their moves. This happens to be the case in this instance. This purchase of stock in The Walt Disney Company was interesting because it coincided with Appaloosa Management’s purchase of another travel and leisure name, Ceasars Entertainment. It is unknown if this is more a bullish call on the travel/entertainment sector or a vote of confidence in Disney and Bob Iger’s leadership.
Do you think Bob Iger has been a good Chief Executive for Disney since he returned late last year?