NEW YORK Jan 2 Leon Cooperman, the chief
executive officer of hedge fund Omega Advisors, said on
Wednesday he is optimistic toward stock markets this year, while
bonds are poised for a sell-off.
Cooperman, whose hedge fund had $7 billion in assets as of
November, told CNBC television that "equities are in a zone of
fair valuation to modest undervaluation," while bonds are in a
He cited the slight improvement in the global economy,
improving U.S. home prices and the pickup in China's economy,
while low-yielding government bonds are a "joke" and high-yield
corporate bonds are no longer a bargain given their lower
With regard to stocks, Cooperman said he owns shares in tech
companies such as Google, Verifone and Sprint
. He also said he owns Freeport-McMoran Copper and Gold
and "a lot" of oil and natural gas company SandRidge
SandRidge has come under scrutiny from hedge fund TPG-Axon
Capital, which owns about 6.7 percent of the company. TPG-Axon,
along with other larger shareholder Mount Kellett Capital, has
been pressing SandRidge to replace its board and chief executive
and for an outright sale of the company.
Cooperman said he has become wary of Apple Inc in
light of its huge cash hoard exceeding $100 billion, although he
still owns shares in the company.
"I think their financial policies are somewhat destructive
to valuation, considering all this cash earning nothing,"
Cooperman said of Apple.
He added, however, that he favors Qualcomm, which
supplies chips to Apple for its iPhone 5 smartphone.