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'I could lose my behind' being long European stocks, David Tepper says

Billionaire hedge fund manager David Tepper told CNBC on Wednesday he could take a significant hit by his investment in European stocks.

"I am long European equities. And, you know, I could lose my behind," Tepper told "Squawk Box." "That's life, if it goes the other way. But the odds are the odds."

Tepper, founder and president of Appaloosa Management, said his European position hinges on the outcome of the French presidential election.

"If you get this French election going the right way, already you have good growth. You're at minus 40 basis points in the ECB. Boom!" he exclaimed, adding that there is more upside in European markets than most people recognize.

Still, the hedge fund titan acknowledged that he has no choice but to manage his risk as the heated race in France continues between far-right candidate Marine Le Pen, mainstream conservative Francois Fillon and young pro-business centrist Emmanuel Macron.

"If I knew the French election was going to go the right way, 100 percent, I'd be much longer Europe," Tepper said. "But there's a downside there. You have to recognize."

Tepper didn't say whom he wants to win in the April 23 election. If no candidate receives a majority, a runoff between the top two finishers will be held May 7.

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