Billionaire David Tepper Won't 'Fight The Fed'—But He Hates This Market

Billionaire investor David Tepper thinks stocks are considerably overvalued, but remains in the market because his number one rule is to never fight the Federal Reserve.

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"Don't Fight The Fed"

Tepper told CNBC on Thursday that his hedge fund Appaloosa Management remains bullish on the market, but only because the Fed has begun cutting rates. 

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The hedge fund manager sees valuations as way too high and the market "frothy" with excess liquidity.  Tepper pointed to inflated multiples and a lack of supporting fundamentals as serious concerns. 

"We're having a really good year and I'm so miserable for having a really good year," Tepper said. 

"I don’t love the multiples, but how do I not own it?” he added. 

Tepper reiterated he is not going against the tide of incoming rate cuts and acknowledged that liquidity and policy direction can propel markets higher even when multiples aren't cheap.

"I am not ever fighting this Fed," Tepper said, adding, "especially when the markets tell me… one and three quarter more cuts before the end of the year, so that's a tough thing not to own."

Appaloosa's Top 10 Holdings

Appaloosa Management's top 10 holdings as of Q2 2025 highlight Tepper's focus on a concentrated, high-conviction portfolio balancing tech, healthcare and energy. 

According to the firm's most recent 13F filing, Appaloosa's top 10 holdings are: 

Company	Portfolio Weight
Alibaba Group Holding Ltd. (NYSE:BABA)	12.4%
UnitedHealth Group, Inc. (NYSE:UNH)	11.9%
Amazon.com, Inc. (NASDAQ:AMZN)	9.2%
Vistra Corp. (NYSE:VST)	5.4%
NRG Energy, Inc. (NYSE:NRG)	4.9%
Meta Platforms, Inc. (NASDAQ:META)	4.6%
NVIDIA Corp. (NASDAQ:NVDA)	4.3%
Alphabet, Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL)	4.1%
Uber Technologies, Inc. (NYSE:UBER)	4.0%
Microsoft Corp. (NASDAQ:MSFT)	3.9%

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