Billionaire hedge fund manager Leon Cooperman believes the stock market slide is about to bottom out.
During an interview with CNBC on Friday, Cooperman said that high-yield investors unable to sell their paper were shorting the S&P as a hedge.
“There is no liquidity in the credit market in the high-yield area. They can’t sell their papers, so what they are doing is they are cross-hedging and shorting S&Ps,” Cooperman said.
“The S&P will just have to find a level that it is comfortable at. I would have thought that that level is not far from where we are presently,” he added.
His remarks arrived just hours after Larry Fink said on CNBC that the stock market could slip another 10% and that oil could reach a floor of $24.
“I don’t think we’ll go down another 10%, but I wouldn’t say it’s impossible,” he said in response to Fink’s comments.
Cooperman doesn’t believe there will be a recession, and that the average common stock in 2016 will perform and catch up to Facebook, Amazon, Netflix, and Google.
“I guess what I would say to you is I’m not selling,” he said. “I’m holding on because I do believe it’s a growth scare rather than a bear market.”