David Tepper, who made the most money of any hedge fund manager in 2013 at $3.5 billion, believes investors better approach the market with more caution now.
“I’m not saying go short, I’m just saying don’t be too fricking long right now,” the head of Appaloosa Management told a few thousand of his colleagues Wednesday at SkyBridge Capital’s SALT 2014 conference in Las Vegas.
Among his concerns are a deflationary environment, weaker-than-expected U.S. growth and a European Central Bank (ECB) that badly needs to ease monetary policy.
The result is a market that not that long ago was fairly easy to play but which is now getting trickier.
(Tepper later told CNBC he has reduced his equity exposure to about 60 percent from 100 percent six months ago, but that he still sees value in stocks like Google and Priceline)