David Tepper, the billionaire hedge fund manager of Appaloosa Management, said Thursday that his firm had reduced its holdings of US stocks.
"If you ask me what inning we're in, I think it's a late-innings game," Tepper, who manages about $14 billion in assets, told CNBC of the nine-year bull market in stocks.
At issue is the ongoing trade dispute between the US and China. $267 billion
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"To me, the market is fair-valued if you don't have tariffs on China," Tepper told CNBC. "But if you do have tariffs on China, the question is how high will the dollar go, and then where will earnings be in that case."
Tepper said he had reduced his exposure to US stocks, although he remained long the market. He estimated his fund had around 25% exposure to the S&P 500 after reducing it by about 30%, which has been the wrong move "because the market has been very hot."
He said he remained bullish on Facebook because the stock was still cheap.