Leon Cooperman says bull market not in early innings but conditions for big pullback are not present

Billionaire investor Leon Cooperman told CNBC on Wednesday the bull market isn't in its early innings but conditions that would normally signal a significant market decline aren't present.

The Omega Advisors founder said recent economic data look fine and the market is "reasonably, fully valued." He added that the market is generally heading back toward normalization.

In the "Halftime Report" interview, Cooperman also repeated that civil charges of insider trading against him by the Securities and Exchange Commission are groundless.

Cooperman, whose hedge fund has $3.6 billion in assets under management, said "rightly or wrongly, ... you're going to have capital losses in bonds over the next couple years."

Cooperman said this will happen slowly because the Federal Reserve is likely to gradually raise its benchmark interest rate. He added that the federal funds rate — which currently has a target range of 0.75 percent to 1 percent — should be at 2 percent.

While Cooperman said his hedge fund missed the rally in the banks, those stocks are, like the market, reasonably are fully priced.

"We can't sit here and make a silk purse out of a sow's ear. The market has had a big move and the conditions for a big decline aren't present — I want to make that very clear. I think the market will end the year modestly higher than it is now," he said.

Cooperman said it seems like the market rally since Donald Trump's election as president is a result of participants believing that the government is now "run by a bunch of capitalists." While some may dislike some aspects of this administration, Cooperman said many people, including himself, like his economic ideas.

He cautioned, however, that there are "plenty of risks out there," including protectionism, exchange rates, high levels of corporate debt, unsustainable deficits and political uncertainty.

One concern Cooperman had is whether the government can push a tax package through Congress on a "timely basis."