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David Tepper, founder of Appaloosa Management.
Key Takeaways
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Billionaire David Tepper said in an interview with CNBC on Thursday that after China’s massive stimulus measures announced on Tuesday, it is time to invest in the country.
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The founder of Appaloosa Management said he would buy “everything” in China. “ETFs, I would do futures. Everything,” said Tepper, who also owns the Carolina Panthers.
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Tepper said many Chinese companies are attractive because they have low price-to-earnings ratios and good growth prospects.
Billionaire hedge fund manager David Tepper has an ambitious call: tackle China in a big way.
In an interview with CNBC Thursday, the founder of Appaloosa Management said that after China’s massive stimulus measures announced Tuesday, it’s time to act. “It affects bonds, currencies and stocks,” Tepper said.
After Beijing’s stimulus announcement, Tepper said he would invest in “ETFs, I would do futures, everything.”
Tepper, who doubled his stake in e-commerce giant Alibaba Group earlier this year (BABA), Chinese internet provider Baidu (BIDU), and online agricultural retailer PDD Holdings (PDD), also owns the Carolina Panthers.
The renowned investor said he favored many large Chinese companies because they had “single digits.” [price-to-earnings] multiples with double-digit growth.” Tepper added that pressure from Beijing to allow share buybacks also made them attractive.
Tepper said he made a similar call in 2010, a period that followed the boom in Chinese stocks before Beijing’s crackdown on its tech giants and the country’s slowing economy sent stocks into a tailspin.
Bank of America expects fiscal measures in the coming weeks
Still, most economists and analysts were disappointed with Tuesday’s raft of measures, noting that a major fiscal effort rather than monetary measures is needed to boost the country’s weak domestic demand.
In a note on Wednesday, Bank of America analysts said they expect China to announce a fiscal package in the coming weeks, including “demand-boosting consumption and investment, as well as further improving social security, health care and measures to promote of birth”. .”
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