As the market continues on its tumultuous ride in the wake of the coronavirus outbreak, billionaire investor David Tepper (Trades, Portfolio) revealed he is cautiously buying some stocks in a CNBC “Halftime Report” interview with Scott Wapner on Monday.
“I’m nibbling right now, for what it’s worth,” he said.
He also warned that investors need to be selective in their stock picking as the Covid-19 pandemic will have varying effects on different industries. Additionally, Tepper noted the broader market could continue to head 10% to 15% lower even after the government approves a stimulus spending deal, which it had not yet done at the time of the interview.
“If you’re levered, I wouldn’t be levered,” Tepper said. “The market could go down more. On the other hand, we could be near a bottom once they [Congress] get this package done.”
The guru, who began converting his Florida-based hedge fund, Appaloosa Management, to a family office structure in 2019, has concentrated most of his recent investments on tech stocks like e-commerce giants Amazon.com Inc. (AMZN, Financial) and Alibaba Group Holding Ltd. (BABA, Financial), Google parent Alphabet Inc. (GOOG, Financial)(GOOGL, Financial) and chipmaker Micron Technology Inc. (MU, Financial).
Tepper, whose firm manages more than $10 billion in assets, said he is also buying some health care stocks, along with corporate debt and bonds.
“Things look really interesting for the long term,” he concluded.
While the tech companies mentioned above are among his top 10 holdings, GuruFocus portfolio data shows health care companies Tepper owned as of the end of fourth-quarter 2019 included UnitedHealth Group Inc. (UNH, Financial), Allergan PLC (AGN, Financial) and Humana Inc. (HUM, Financial).
Watch the full interview segment below.
Disclosure: No positions.
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