Billionaire hedge fund manager David Tepper to buy ‘everything’ related to China By Investing.com

Investing.com — Billionaire investor David Tepper said he is buying more of “everything” related to China after Beijing introduced unexpectedly aggressive stimulus measures to shore up the country’s slowing economy.

Tepper, who founded Appaloosa Management in 1993, explained that his decision stemmed from a change in policy by Chinese leaders.

“I thought what the Fed did last week would lead to China easing, and I didn’t know they were going to bring out the big guns like they did,” he said in a CNBC interview Thursday.

Hedge fund Tepper maintained most of its positions in Chinese companies during the second quarter, even as it reduced holdings in Alibaba (NYSE:) Group and several US tech giants. With China now promising more fiscal support and measures to stabilize the housing market, Tepper is once again increasing its exposure to Chinese stocks, including tech firms such as Alibaba and Baidu Inc (NASDAQ: ).

“We’re a little bit longer, more Chinese stocks,” Tepper said, citing low attractive valuations as a reason for his increased investments, even after the recent rally in prices.

The comments come as China’s benchmark onshore shares, , surged 14 percent this week, marking the biggest weekly gain since the global financial crisis. Meanwhile, , which tracks US-listed Chinese stocks, rose 19% over the same period.

Before this week’s rally, Tepper, along with Scion Asset Management’s Michael Burry, had been one of the few major hedge fund investors bullish on Chinese stocks.

Tepper also noted that it has relaxed some of its self-imposed limits on investing in Chinese stocks.

“I have limits, historical limits. I probably said a long time ago, I don’t go above 10% or 15%. Well, that’s probably not true anymore,” he told CNBC, though he added that it would likely have set a “new found limit” in the event of a market pullback.

Tepper is not alone in his bullish stance on China. Man Group Plc’s Nick Wilcox told Bloomberg earlier this week that he expects Chinese stocks to continue rising, supported by ongoing policy support, improved earnings and the Federal Reserve’s recent easing, which has opened up more room for China to lower interest rates.

Similarly, Goldman Sachs’ prime brokerage reported on Tuesday that hedge funds had been buying Chinese stocks.

Meanwhile, Morgan Stanley strategists predict that the CSI 300 index could rise by another 10% in the near future.