Tepper: ‘Don’t Be Too Friggin’ Long’

May 15 2014 | 2:48pm ET

Appaloosa Management’s David Tepper had a simple message for his fellow hedge-fund managers assembled in Las Vegas: Cash might not be a bad place to be right now.

“I’m not saying go short,” Tepper told the SkyBridge Alternatives Conference yesterday. “Just don’t be too friggin’ long.”

Tepper said he was “nervous” about the stock market, noting that U.S. growth is not as strong as it should be. He also said that central banks, especially in Europe, are being too complacent.

“We have this term called coordinated complacency right now to describe the world’s central banks right now,” he said. “The market is kind of dangerous in a way.” But, he add, it may “grind higher” over the near term.

On central-bank complacency, York Capital Management’s James Dinan concurred. He said that interest rates will stay down “longer than people think,” and noted that he fears deflation more than inflation.

“It’s really hard for prices to go up,” he said.

For his part, Tepper didn’t limit his discussion to the markets, pronouncing himself a firm believer in good karma. He noted that in the five years since he donated enough money to keep food banks and soup kitchens open in his home state of New Jersey, Appaloosa—which was losing money that year—had done better than ever.

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