David Tepper's Appaloosa Management fully exited its SanDisk (SNDK) position during a quarter of record gains for the stock, as revealed in its latest 13F filing. This move proved prescient, as SanDisk shares subsequently fell over 30% from their peak, highlighting a disciplined approach to profit-taking after a parabolic run.
The 8-K filing, referencing a 13F, discloses that David Tepper's Appaloosa Management completely sold its 281,250 shares of SanDisk (SNDK) during a quarter where the stock saw a historic 200%+ rally. This move is significant because SanDisk shares have since dropped over 30% from their late-June peak, validating Tepper's decision to exit. While the exact timing of the sale within the quarter isn't specified, it demonstrates a disciplined risk management strategy of taking profits after extraordinary gains. This could signal a broader cautious sentiment from institutional investors towards high-flying memory chip stocks, potentially affecting other companies in the sector like Micron Technology (MU), which Appaloosa also trimmed. For traders, this highlights the challenge of timing market peaks and the potential for sharp corrections after parabolic runs in the tech sector.