Leon "Lee" Cooperman, chairman and CEO of the $9 billion hedge fund Omega Advisors, said Monday the stock market "isn't priced to perfection" but it's fairly valued, unlike the bond market. ( Tweet This)
Cooperman also laid out his "best ideas" list, saying he's long on a handful of large-cap stocks, including Actavis, AerCap Holdings, Citigroup, Dow Chemical, General Motors, Google and Priceline Group. He's also long Gulf Coast Ultra Deep Royal Trust, a stock he categorized as a "cigar butt stock," meaning it still has one good puff left in it.
The legendary investor is also bullish on energy prices. Omega Advisors sees the price of gas ending the year somewhere between $3 and $3.50 per gallon, while it expects oil to close out 2015 around $70 a barrel, which is "about what the stocks are discounting," Cooperman said.
Speaking from the Sohn Investment Conference, the longtime hedge fund manager said the stock market is "fully valued," adding that it "isn't cheap, but it's not expensive" either.
Berkshire Hathaway CEO Warren Buffett offered similar comments earlier Monday on CNBC, saying "Bonds are very overvalued" and he would short the asset class if he could do it easily.
"If I had an easy way, and a nonrisk way, of shorting a lot of 20- and 30-year bonds, I would do it. But that's not my game and it can't be done in the kind of quantity that would make sense for us," the billionaire investor said.
Long-term bond prices have rallied over the years, thanks in part to the Federal Reserve's ultralow interest rate policy.