Down more than 28% in 2025, American Airlines (AAL) stock has trailed the broader markets by a wide margin this year. However, David Tepper, the billionaire hedge fund manager of Appaloosa Management, added 9.25 million shares of AAL to his portfolio in Q3.
The equity stake represents a bold contrarian bet on the struggling aircraft carrier, given the volatile macroeconomic environment. This investment indicates that Tepper is willing to bet big on American Airlines, even as the carrier faces challenging conditions. Over the years, Tepper has built his career identifying value in struggling companies that others avoid.
