Appaloosa Management's David Tepper said Facebook's stock looks inexpensive at its current price and that the fund has not reduced its holding.
"It's kinda cheap in this market for the growth rate. So we're still holding on as big as we were," Tepper told CNBC's Scott Wapner on Thursday.
"It's not the Cambridge Analytica stuff that's [as] concerning as some of the other stuff with margins and what's going on there," he added. "But look, the stock still trades — it looks like it's still trading at 16, 17 times" next year's earnings estimates.
Facebook shares came off their lows during the hedge-fund manager's interview but remained just under break-even for the session.
Tepper's comments on the social media giant came shortly after the manager told CNBC's "Halftime Report" that he's grown more uncertain about the broader stock market in recent months, calling it "a late-inning game."
The investor said he is now about 25 percent exposed to the stock market. Tepper called the market "fairly valued" if the U.S. doesn't impose more tariffs on Chinese goods.
Tepper's comments come months after news first broke about the improper collection of Facebook users' personal data by political research firm Cambridge Analytica.
The resulting scandal, the largest in Facebook's history as a public company, marked the start of a public firestorm — and financial pain — for some of Wall Street's largest technology companies.
Facebook shares sank more than 10 percent in the month following the Cambridge Analytica revelations, and they remain down more than 8 percent in 2018 against the S&P 500's 8.6 percent climb.
Appaloosa Management has approximately $14 billion of assets under management. The billionaire investor is also the owner of the National Football League team Carolina Panthers.