DAVID TEPPER: I have a bunch of problems with the stock market

Hedge fund billionaire David Tepper, the founder of $US20 billion distressed-debt fund Appaloosa Management, said on CNBC’s “Squawk Box” that he’s “not as bullish” as he could be.

“I’m not probably as bullish as I could be because I have problems with earnings growth. I have problems with multiples. I have problems with all kinds of problems so I can’t really call myself a bull,” Tepper said.

He noted that people have high expectations for earnings in 2016.

“I’m going to give a complement to Cramer,” Tepper said, pointing out that the “Mad Money” host has previously suggested folks take cash off the table if they’re fully invested.

“That’s probably not a bad idea,” Tepper said. “If you’re the average guy, over time, you won’t do well in the stock market. We’re not talking about crashes here, massive misvaluations. We’re talking about a market that should correct. The question is at what level?”

He noted that if the market fell 20% he would be a buyer.

Tepper’s fund fell 1.83% during a volatile August and is now up 11.5% for the year, Reuters reported.

The average hedge fund was down 2.2% in August, according to data from Hedge Fund Research, compared with the S&P 500, which fell 6.2%. The average hedge fund is down 1% so far this year, while the S&P 500 is down about 6.2% year-to-date.

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