Here's why Dan Niles is waiting to buy back in to the stock market

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Tech-focused investor Dan Niles said Thursday that he's eyeing a few big stocks as the market pulls back and is waiting for an opportunity to buy back in. 

Niles, the founding partner of AlphaOne Capital, said on "Squawk Box" said his fund has cashed out of many of its positions after the recent run up, saying that valuations were too high.