May 13, 2016 / 9:52 PM / 3 years ago

David Tepper's Appaloosa bought and sold Valeant shares in first quarter

David Tepper, founder of Apploosa Management, speaks during the Sohn Investment Conference in New York May 4, 2015. REUTERS/Brendan McDermid - RTX1BJOY

NEW YORK (Reuters) - David Tepper’s hedge-fund firm Appaloosa bought nearly 1 million shares in Valeant Pharmaceuticals International Inc in the first three months of 2016, according to regulatory filings, but sold them during the first quarter.

Shares of Valeant jumped 2 percent after filings revealed Appaloosa’s 945,000-share stake, but CNBC reported that the firm has already sold out of the position, citing a person familiar with the situation. A spokesman for Appaloosa declined to comment.

Despite a 10 percent reduction in its exposure, Appaloosa’s largest stake continued to be placed in SPDR S&P 500 ETF Trust call options. Its 2.7 million SPY calls were valued at more than $555 million by the end of the quarter, and accounted for roughly 9.8 percent of its portfolio.

Hedge-fund SEC disclosures are backward-looking and come out 45 days after the end of each quarter. Still, the filings offer a glimpse into what hedge fund managers saw as investment opportunities.

The filings do not disclose short positions, or bets that a stock will fall. As a result, they do not always present a complete picture of a management firm’s stock holdings.

Reporting By Jennifer Ablan; Editing by Bernard Orr

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