Cooperman expects ‘very little’ from market but likes this one stock

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on Nov 21, 2023
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  • Leon Cooperman says the current market is one for a stock picker.
  • He has Energy Transfer stock as his biggest holding at present.
  • ET is currently up more than 15% versus the start of this year.

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Leon Cooperman – the Chief Executive of Omega Advisors says he does not expect much from the market at large.

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Cooperman doesn’t expect a new high in S&P 500

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The billionaire investor told CNBC in a recent interview that concerns related to a fiscal crisis will likely stand in the way of S&P 500 printing a new high for quite some time.

Ultimately, we will have a crisis in public sector finance, and the market is not discounting a crisis.

The benchmark index has gained about 10% since late October to 4,550 at writing – but Cooperman does not expect it to surpass the 4,600 level in the near term.

As such, the hedge fund manager recommends picking individual stocks to find value and maximise returns. A name that particularly pops out to him is Energy Transfer LP Unit (NYSE: ET).

Energy Transfer is Cooperman’s biggest holding

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Cooperman has been constructive on the energy space since late 2021.

And a regulatory filing on Tuesday suggests he hasn’t changed his stance yet considering his biggest holding at the end of the third quarter was Energy Transfer. His stake in the midstream energy company is worth a whopping $167 million at present.

The Dallas-headquartered firm reported its earnings for the third quarter on November 1st that came in shy of Street estimates. ET is still up over 15% year-to-date at writing.

Note that the New York-listed firm currently pays a rather lucrative dividend yield of 9.22% that makes it all the more attractive for an energy bull. Cooperman also has sizable stake in Ashlan Global and Devon Energy.

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