Breaking News from CNBC's Melissa Lee: Appaloosa Management's David Tepper Sees 8-10% Upside in 2015

WHEN: Today, Monday, December 29th

WHERE: CNBC's Street Signs and

Following is breaking news from CNBC's Melissa Lee. All references must be sourced to CNBC.

Appaloosa's David Tepper sees 8-10% upside in 2015

Melissa Lee | @MelissaLeeCNBC

Billionaire hedge fund manager David Tepper said the S&P 500 is "fairly valued" but that it could rise another 8 to 10 percent from current levels.

"I think we'll have a good year," he said in a phone conversation on Monday, referring to 2015. Fair value, he said is a range, not a specific number and with the S&P with a price-earnings ratio of 16, stocks could rise to the upper band of the range, about 18. Also, central bank easing plays a key role in fueling stocks' rise.

"You have people responding to deflation all over the place. First thing that goes up when people try to fight deflation is asset prices," he said.

When asked how he's positioned in equities now versus in April when he was 70-80% long, he said "longer." In April, Tepper warned "don't be so frickin long" at the SALT conference in Las Vegas.

"It's not the time to be careful now. Enjoy the ride," he said. But he also warned that investors should be aware of overvaluation. "Don't get too comfortable when the ride starts. The ride hasn't started yet."

Tepper's fund, like others, has had a tough year in 2014. He says he's underperforming the S&P but "up on the year" and "up" for the month of December.

Last week, Tepper, in an email to CNBC's "Squawk Box," compared 2015 to 1999, the year after the Russian financial crisis and easing in Europe. "1999 was a fantastic year," he said, pointing out that the Nasdaq was up 85%. "But at some point in 99, you had to wake up" to overvaluation.

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