Macro mean-reversion: cyclicals + China, +24% in 2025
David Tepper (Appaloosa)
| Symbol | Action | Vol | Stop Loss | Take Profit | Size | Links |
|---|---|---|---|---|---|---|
| F | BUY | 35% | 26.8% below entry | 17.7% above entry | 8.0% | TVYH |
| GM | BUY | 36% | 27.9% below entry | 18.4% above entry | 7.7% | TVYH |
| AMZN | BUY | 33% | 25.4% below entry | 16.8% above entry | 8.5% | TVYH |
| GOOGL | BUY | 30% | 23.1% below entry | 15.2% above entry | 9.3% | TVYH |
| XLF | BUY | 18% | 13.9% below entry | 9.2% above entry | 15.5% | TVYH |
| JD | BUY | 44% | 34.1% below entry | 22.5% above entry | 6.3% | TVYH |
This strategy is suitable for passive investing. - Take profit: Rebalance when any position exceeds 2x its target weight. Trim back to target, redeploy to underweight positions. - Stop loss: NO price-based stop loss. This strategy recovered from -24% drawdown to return 366% long-term. - Exit rule: Review annually. Exit if strategy underperforms its benchmark for 3 consecutive years.