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  • David Tepper of Appaloosa Management discussed Apple, Alibaba and China on CNBC’s "Squawk Box."
  • Shares of Apple surged on Thursday trading, while Alibaba's stock fell.
  • Tepper disclosed he is long Apple, but has closed his stake in Alibaba.

David Tepper of Appaloosa Management was on CNBC’s "Squawk Box" on Thursday. The hedge fund manager discussed several issues, from the current stock market and its volatility to Apple Inc. (NASDAQ: AAPL).

Appaloosa last disclosed a 2,518,167 share stake in Apple during the latest round of 13F filings last month.

The investor assured Apple’s stock is cheap at the time, but highlighted a couple other factors investors should take into consideration:

1)   Although people believe the company cannot be replaced, Tepper thinks it can. “It is still a device company,” he assured.

2)   The company has “a lot of Chinese exposure for its growth, which is a bit of a problem,” he added. However, he assured this is nothing he can’t deal with, given the current valuation.

Alibaba & The ‘Learning Curve’ In China

Tepper then went into Alibaba Group Holding Ltd (NYSE: BABA), a company in which his fund had last disclosed a position comprising 1,360,000 shares, worth more than $110 million.

However, on the broadcast he dropped this bomb: Appaloosa does not own Alibaba shares any longer. After losing money in the Chinese market, the hedge fund manager decided to dispose of his stock in the e-commerce giant, selling the last bit in early July – around $80.

The investor said he sees the government making one “policy mistake” after another. It’s a learning curve, he explained.

The problem is, he said, when it's an economy as big as China that influences a third of the world, “it’s bad for them to be in a learning curve.”

Posted-In: Appaloosa Management CNBCCNBC Long Ideas Movers Tech Media Trading Ideas


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