Leon Cooperman says he's still invested even if recession is likely in 2023. Here are his top picks

Published Tue, Apr 5 20225:09 PM EDTUpdated Tue, Apr 5 20226:09 PM EDT

Billionaire investor Leon Cooperman said Tuesday that he sees the probability of a recession in 2023 caused by either surging oil prices or the Federal Reserve's aggressive tightening. Even as the macro picture has deteriorated, Cooperman said he remains heavily invested in value stocks. "I think the Fed has totally missed it, and I think we have a lot of wood to chop. I would think the price of oil or the Fed would push us into a recession in 2023. It's not written in stone, but that would be my guess," Cooperman said on CNBC's " Closing Bell Overtime " Tuesday. The chair and CEO of the Omega Family Office said he doesn't expect a recession in 2022 and he is still invested in the market. Cooperman revealed that he is 68% net long right now after reducing risk by a third this year. Last month, the Fed approved a 0.25 percentage point rate hike , the first increase since December 2018. The central bank also signaled that it will be raising rates 10 times — in less than two years — and cut what likely will be trillions off the balance sheet. Meanwhile, soaring oil prices have spooked investors recently. Russia's invasion of Ukraine has caused supply disruptions, prompting the increase. Last month, West Texas Intermediate crude futures , the U.S. oil benchmark, briefly topped $130 to hit a 14-year high. Cooperman said he expects "inappropriate" fiscal and monetary policies will be a culprit for a downturn in the economy and the market. He said he believes the unprecedented stimulus has pulled demand forward and created an artificial situation in the economy. The investor said he has returned about 6% year to date thanks to his sizable exposure to energy stocks, which he said are still cheap relative to commodity prices. Cooperman said his top picks in the sector include Canadian oil and gas producers Tourmaline Oil and Paramount Resources as well as Devon Energy . He said he also owns Pioneer Natural Resources . Cooperman said his largest position is in Ligado's first-lien debt, and he has an about 8% position in Mr. Cooper Group.

Leon Cooperman at the 2019 Delivering Alpha conference in New York on Sept. 19, 2019.

Adam Jeffery | CNBC

Billionaire investor Leon Cooperman said Tuesday that he sees the probability of a recession in 2023 caused by either surging oil prices or the Federal Reserve's aggressive tightening.

Even as the macro picture has deteriorated, Cooperman said he remains heavily invested in value stocks.