David Tepper is buying 'everything' in China: 'ETFs...futures...everything'

By William Watts

'Everything...everything - ETFs, we do futures...everything. Everything. This is incredible stuff for that place, ok, so it's everything.'David Tepper, founder, Appaloosa Management

That's billionaire David Tepper, widely seen as one of the most successful hedge-fund managers of all time, telling CNBC in a rare public appearance that he was going all-in on China after this week's announcement of a range of stimulus measures aimed at boosting the country's beleaguered economy.

Tepper said he had seen room for China to act after the Federal Reserve last week delivered a larger-than-expected rate cut of 50 basis points, but the scale of the proposed measures from Beijing prompted him to go past his own self-imposed trading limits.

CNBC's Becky Quick noted that a regulatory filing showed Tepper's Appaloosa Management had cut back on a big position in Alibaba (BABA) in the second quarter, and asked Tepper if he had re-upped his position.

Tepper didn't specify but said he was bullish on all aspects of China.

China's central bank this week has delivered a rate cut and announced a range of monetary easing measures, while the Communist Party's top decision-making body has pledged additional measures as Beijing attempts to snap the economy out of a funk tied in part to a drawn-out real estate crisis.

Chinese stocks have soared. The CSI 300 XX:000300 has surged nearly 11% this week, while Hong Kong's Hang Seng HK:HSI has jumped more than 9%.

Tepper said he would "love to see a pullback," saying that he would have another "newfound" position limit after a market dip and provided the promised measures are implemented.

Tepper said major Chinese names offer "single digit P/E (price-to-earnings) multiples with double-digit growth...and this is the other thing, you have some of these stocks with 50% cash...20% cash, 30% cash."

And if the Chinese currency proves really strong, Tepper said, it will encourage stock buybacks, he said.

-William Watts

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09-26-24 0958ET

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