The chairman of Omega Family Office, Leon Cooperman, expressed caution during a recent CNBC interview, citing concerns over high market valuations and an unpredictable policy environment. As the S&P 500 remains barely positive year-to-date in 2025, Cooperman is strategically selling profitable holdings and maintaining an unusually high cash reserve of about 15%, significantly above the typical Wall Street cash allocation of 5%.
Cooperman's hesitance stems from a combination of factors, including the potential inflationary impact of tariffs and the contraction effect anticipated from President Donald Trump's deficit reduction strategies. Despite his support for Trump's overall approach, Cooperman expressed mixed feelings about the manner in which tariffs against U.S. trading partners are being pursued.
"The president is on the right track, but I think he's doing things in a manner that is very destabilizing. So I have a conservative view" – Leon Cooperman
Cooperman is actively seeking new opportunities by looking for investments that are undervalued relative to the market while still offering competitive growth prospects. He emphasized his focus on selling assets that appreciate in value and reducing exposure when market conditions are favorable.
"Basically, I'm selling anything I have that goes up. I'm selling on strength, reducing exposure on strength" – Leon Cooperman
Among Cooperman's top holdings is Fidelis Insurance Holdings, a Bermuda-based insurance and reinsurance company. Despite its position in his portfolio, Fidelis has struggled this year, experiencing a 12% loss. Another significant investment includes Vertiv Holdings, a technology infrastructure firm that has faced a 22% decline amid broader concerns over AI-related stock valuations.
"I'm looking for things that are selling at a discount to a market multiple, and have growth prospects comparable to the market" – Leon Cooperman
Economists have voiced concerns that ongoing tariffs could lead to inflationary pressures, further complicating the economic landscape. Cooperman's strategy appears to reflect these apprehensions as he navigates a market fraught with uncertainty while maintaining a careful watch for discounted yet promising investment opportunities.
"We have a bunch of stocks have done well. We're keeping up with the market, which is [a] good thing" – Leon Cooperman