Omega bullish on U.S. stocks, blames August turmoil on momentum investors

NEW YORK Leon Cooperman and Steven Einhorn’s Omega Advisors remains bullish on U.S. stocks and blames much of August’s market turmoil on so-called risk parity funds and momentum investors known as CTAs, according to a letter the fund sent to investors.

Omega closed August down 6 percent, joining a slew of other high profile hedge funds that posted losses during the month.

In the letter, seen by Reuters on Thursday, Cooperman and Einhorn said they remained happy with the fund’s current holdings and do not expect slower growth in China to significantly dent the global economy.

(Reporting by Jennifer Ablan– Writing by Richard Valdmanis– Editing by Frances Kerry)