The Goodyear Tire & Rubber Company (NASDAQ:GT) is one of Billionaire David Tepper’s 10 Small and Midcap Stock Picks with Huge Upside Potential.
Tepper has had a long-term bet on The Goodyear Tire & Rubber Company (NASDAQ:GT) stock. The company first appeared in the 13F portfolio of Appaloosa Management LP back in the fourth quarter of 2010. This position comprised over 10 million shares. The holding was increased to 22 million shares by the second quarter of 2013. Thereafter, the position was trimmed and sold off completely by the middle of 2017. A new position was then opened early 2020 and sold off in early 2022. The present stake, purchased in the second quarter of 2025, began with 861,000 shares and was increased to 5 million shares in the third quarter of 2025. Filings for the fourth quarter of 2025 show that the fund has trimmed this holding by 50% and owns 2.5 million shares in the company.
The primary driver of hedge fund interest in The Goodyear Tire & Rubber Company (NASDAQ:GT) stock has been the visible success of the strategic review initiated by the firm in late 2023. Management has hit and exceeded restructuring milestones. As of early 2026, Goodyear has completed all three planned major divestitures – Off-the-Road tires, Chemicals, and the Dunlop brand – generating over $2.2 billion in gross proceeds. The company achieved a $1.5 billion annualized run-rate benefit by the end of 2025. Institutional investors are also focused on the fortress balance sheet being built through debt retirement. Proceeds from the $2.2 billion in asset sales are being used to retire high-interest debt. In early 2026, the company retired $500 million in 9.5% notes, which analysts estimate will save roughly $70 million in annual interest, providing an immediate boost to adjusted earnings per share.
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