"I'm not saying go short, just don't be too friggin' long," Tepper, who has one of the best investing records in the industry, said at the SkyBridge Alternatives Conference in Las Vegas.

Saying that he doesn't think U.S. economic growth is as strong as it should be, Tepper told the audience of hedge fund managers and investors that this is a time to try to preserve money.

Even though U.S. stock markets reached record levels this week, Tepper said the market has struggled to move significantly higher. He also said that central banks are currently being complacent, noting that Europe's central bank "is behind the curve."

Tepper's views on the stock market are closely watched within the $2.7 trillion hedge fund industry and beyond, in part because his fund's double-digit returns last year made him the industry's best paid manager with a $3.5 billion pay-day, according to an industry ranking.

Appaloosa manages roughly $20 billion with a staff of 34 people and Tepper tends to keep a relatively low profile, which made his appearance one of the three-day conference's high points.

In a wide-ranging interview with SkyBridge Capital founder Anthony Scaramucci, Tepper also talked about his philanthropic activities, noting that in 2008, when his fund was suffering through double-digit losses, he donated enough money to make sure food banks and soup kitchens in New Jersey, where he lives, were always stocked.

Asked whether he believes in good karma, Tepper said: "Are you ... kidding me? Of course I believe in that," noting that in the five-year period since then his fund has performed better than ever.