Wall Street Take Note: David Tepper Is Bullish (GS, BAC, C, WFC, AIG, HIG, M, COF, CF, PFE, MRK, JNJ)

Billionaire hedge fund manager David Tepper sure has a way with words, and a look at his Appaloosa Management’s now 17-year track record shows he knows a thing or two about picking investments as well. The former Goldman Sachs Group (GS) bond trader made headlines after returning to investors an astounding 132.7% net of fees in 2009, while earning a personal $4 billion payday in the process, and traders have paid close attention to the fund’s latest moves in 2010.

After his fund cashed in on bailed-out banks last year, Tepper is still bullish on economic support from the government. In a CNBC interview this morning, Tepper offered his interpretation of recent commentary from the Fed, paraphrasing, “We want economic growth, and we don’t care if there’s inflation.” Appaloosa’s outlook is bullish across multiple asset classes according to coverage by Business Insider, and the latest regulatory filings show where Tepper was placing bets heading into the second half.

A look at Appaloosa Management’s top-15 U.S.-listed equity holdings from the end of the second quarter shows that financial stakes in Bank of America (BAC), Citigroup (C), and Wells Fargo (WFC) were still among the firm’s biggest bets. Tepper was trimming his bank positions in the three months ended June, as well as stakes in insurers American International Group (AIG) and Hartford Financial Services (HIG).

Meanwhile, Appaloosa was adding new positions in department store Macy’s (M), credit card company Capital One Financial (COF), and fertilizer firm CF Industries Holdings (CF) during Q2, while increasing stakes in first-quarter additions Pfizer (PFE), Merck (MRK), and Johnson & Johnson (JNJ).

Tepper told CNBC, “I am the animal at the head of the pack,” adding, “I either get eaten or I get the good grass.” Given his bullish outlook and aggressive investment style, Wall Street will be paying close attention to Tepper’s next moves. In the meantime, investors can view more stocks Appaloosa has invested in, and a chart of their combined performance at tickerspy.com.

Pro portfolio performance is based on institutions’ top-15 holdings as disclosed in quarter-end filings with the SEC. Pro performance does not take into account additional holdings beyond the top 15 nor does it include positions that are not required to be disclosed by the SEC. As such, Pro portfolio performance should be considered an approximation and not a precise record of how an institution has performed over time.

Tags: AIG, BAC, C, CF, COF, GS, HIG, JNJ, M, MRK, PFE, WFC