New York (HedgeCo.net) – David Tepper, founder and President of Appaloosa Management, was all over the news on Thursday. There were articles from Business Insider, CNBC, Reuters and two from Market Watch. So what was all the news? Interestingly enough, the stories focused on different things that Mr. Tepper said.

All of the articles developed from an interview with CNBC and the crux of the interview is that Tepper thinks there will be more volatility in the market and that he isn’t very bullish on stocks right now. He cited earnings growth and global economic growth as the reasons for is less than optimistic stance. He added that if stocks dropped another 15-20% that he would be a buyer.

Squawk Box host Andrew Ross Sorkin asked Tepper if there was anywhere in the world “where there’s so much blood in the water already that it actually looks good?” To which Mr. Tepper rattled off the following comments:
“Here’s when I’ll tell you. What I like to see is when some of those big stocks with big emerging market components — their P/Es [price earnings ratios] come down. Show me that.”

“Show me when hedge funds aren’t in these last two years with increased volatility … and they’re out of this last two year range. Show me that.”

“Show me when mutual fund cash levels are a little bit higher the way they were the past five years before these last two years. Show me that.”

“Show me those things and maybe I’ll jump back in the water again. I’ve got nice bathing suits, I think maybe I’ll get a new bathing suit.”

Rick Pendergraft
Research Analyst
HedgeCoVest