David Tepper‘s latest portfolio moves suggest the billionaire investor isn’t walking away from China—but he’s becoming far more selective about where he wants exposure. Appaloosa Management trimmed its stake in Alibaba Group Holding Ltd (NYSE:BABA), exited JD.com, Inc. (NASDAQ:JD) and PDD Holdings Inc. (NASDAQ:PDD) entirely, while adding to Baidu, Inc. (NASDAQ:BIDU) signaling a shift away from broad-based China bets toward companies Tepper appears more willing to back.

David Tepper Trims Alibaba While Exiting JD.com and PDD

Appaloosa’s second-quarter Form 13F shows Tepper reduced his Alibaba position by roughly 12% while completely exiting holdings in e-commerce giants JD.com and PDD Holdings. The fund also sold out of the KraneShares CSI China Internet ETF (NYSE:KWEB), eliminating another avenue for broad exposure to Chinese internet stocks.

The moves stand out because Tepper has long been viewed as one of Wall Street’s more vocal investors in China. Rather than abandoning the market altogether, however, the latest filing points to a narrower investment approach, with capital concentrated in fewer names rather than spread across the broader sector.

It’s worth noting that 13F filings are a snapshot of holdings as of June 30, 2026, and don’t reflect any portfolio changes Appaloosa may have made after the quarter ended.

Baidu Emerges as Tepper’s Preferred China Bet

While reducing exposure elsewhere, Appaloosa increased its stake in Baidu by approximately 14%, making it one of the few China-related positions to grow during the quarter.

The filing doesn’t reveal why Tepper favored Baidu over other Chinese technology companies. 13F filings only disclose holdings—not the reasoning behind them.

Still, the combination of a larger Baidu position alongside exits from JD.com, PDD and KWEB suggests Appaloosa is differentiating among individual businesses rather than making a broad call on China’s equity market.

The portfolio changes came during a broader reshuffling that saw Appaloosa reduce its disclosed holdings from 31 to 27 while increasing the portfolio’s reported value to about $7.7 billion from $5.9 billion, reflecting greater concentration within the fund.

What Investors Should Watch Next

Tepper’s China exposure hasn’t disappeared—it has become more focused. Future regulatory filings will show whether Appaloosa continues consolidating around a handful of Chinese companies or rebuilds broader exposure if sentiment toward the country’s equity market improves.

For investors tracking Tepper’s moves, the latest filing suggests stock selection, rather than a blanket view on China, is increasingly driving his positioning.

Image via Shutterstock