DAVID TEPPER: I have a bunch of problems with the stock market
"I'm not probably as bullish as I could be because I have problems with earnings growth. I have problems with multiples. I have problems with all kinds of problems so I can't really call myself a bull," Tepper said.
He noted that people have high expectations for earnings in 2016.
"I'm going to give a compliment to Cramer," Tepper said, pointing out that the "Mad Money" host has previously suggested folks take cash off the table if they're fully invested.
"That's probably not a bad idea," Tepper said. "If you're the average guy, over time, you won't do well in the stock market. We're not talking about crashes here, massive misvaluations. We're talking about a market that should correct. The question is at what level?"
He noted that if the market fell 20% he would be a buyer.
Tepper's fund fell 1.83% during a volatile August and is now up 11.5% for the year, Reuters reported.
The average hedge fund was down 2.2% in August, according to data from Hedge Fund Research, compared with the S&P 500, which fell 6.2%. The average hedge fund is down 1% so far this year, while the S&P 500 is down about 6.2% year-to-date.