Leon Cooperman Reduces Microsoft Shares, Warns of U.S. Debt Crisis

Billionaire investor Leon Cooperman has expressed a more pessimistic outlook on the stock market compared to the prevailing sentiment on Wall Street. In a recent interview on CNBC's "Money Movers," Cooperman cautioned that the expanding U.S. fiscal deficit could lead to a significant crisis in the future. He emphasized that there is a lack of attention on the growing national debt, stating, "We're heading toward a fiscal disaster in our country." Cooperman, who leads the Omega Family Office, has been vocal about his concerns regarding the national debt, which he believes has been exacerbated by the unprecedented economic stimulus measures implemented during the pandemic. He argues that these measures have artificially boosted demand, creating an unsustainable economic environment. As a seasoned value investor, he is particularly troubled by the high market valuations, noting that the market is currently trading at over 20 times earnings. In light of these concerns, Cooperman has made significant adjustments to his investment portfolio. Notably, he reduced his stake in Microsoft by 57% in the last quarter, bringing it down to a value of $57 million. Despite these changes, he maintained most of his top holdings, with mortgage lender Mr. Cooper Group remaining his largest investment at $232 million. Cooperman continues to favor energy stocks, with Energy Transfer, Devon Energy, and Ashland Global among his key investments.