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Top Portfolio Manager Gives Picks for a Shaky Economy

Friday, 1 Jul 2011 | 3:26 PM ET

After appearing on "The Strategy Session" on Thursday, Leon Cooperman, billionaire chairman and CEO of Omega Advisors, continued the discussion off-air with David Faber about the stocks he's bullish on even in the shaky economy.

The Billionaire's Playbook
Leon Cooperman, billionaire chairman and CEO of Omega Advisors, reveals his strategy for picking stocks.

Cooperman oversees $6 billion in assets and was voted the number one portfolio manager in Institutional Investor's 'All-America Research Team' survey for nine consecutive years.

"We have more ideas than we have money, and recognizing the tail risks in the economy I'm just trying to control our overall exposure," Cooperman said.

Overall he is looking for companies with "more growth, lesser valuation or more dividend yields."

Cooperman's Stock Picks:

Apple:Apple is for an investor that is "growth-oriented," as it has been trading at 12, 13 times earnings, Cooperman said. He acknowledged that Apple is popular, but the financial policies are depressing the stock.

Citrix Systems: Citrix is "important in the cloud computing area," he said.

Discovery Communications: "They're buying back a substantial amount of stock. We see a good growth outlook for them," added Cooperman.

Teva Pharmaceutical Industries: Teva has "really been a very disappointing stock, trading at less than 10 times earnings," he explained. They generate several billion dollars per year in free cash flow, are developing new products, and "with the aging population, the healthcare area is a growth area."

Also, Cooperman's total return stock picks (stocks that have a decent and growing yield, growth in earnings, and are trading at a multiple of about 12-13 times earnings) include:

ACE, CVS Caremark, Pacific Booker Minerals and KKR Financial Holdings.

Cooperman owns 14 percent of KKR Financial, which is the debt management arm of private equity firm KKR. He bought it as low as $2, and thinks it's undervalued, yielding about 6 percent when it's valued at 11 percent.

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ACE
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CTXS
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CVS
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DISCA
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KFN
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Pacific Booker Minerals
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TEVA
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AAPL
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