Leon Cooperman is a name most Wall Street investors remember well. This legendary investor, who began his career at Goldman Sachs where he headed asset management, has gradually built a strong presence in the investment world. In 1991, he founded his own hedge fund, Omega Advisors, which has been a long-term success. However, Cooperman decided to close the fund in 2018 and donate most of his assets to charity. Still, his investment decisions continue to attract the attention of many investors.

Recently, he has expressed concerns about the U.S. economy and high interest rates, which he sees as a risk to short-term growth. He considers most market opportunities to be overvalued, which forces him to be cautious in his investments.

In this article, therefore, we look at three of Cooperman's main investment bets that should not escape the attention of any value investor.

Mr. Cooper Group $COOP

Mr. Cooper is one of the largest non-bank mortgage service providers in the US. This stock has seen significant growth over the past five years - more than 660%. Cooperman's investment in this company has proven to be extremely profitable, making it attractive to other investors.

Mr. Cooper's stock recently reached an all-time high, reflecting investor confidence in the company's strength in the real estate market. In addition, the U.S. Federal Reserve's interest rate cuts have fueled expectations that lower rates will bring a resurgence in refinancing and home buying, giving Mr. Cooper further upside potential.

Cooperman's average purchase price of Mr. Cooper stock was around $12 per share. Now that the stock is trading near $100, his investment has appreciated several times. His stake in the company is worth nearly a quarter of a billion dollars, and Cooperman has become the company's third-largest shareholder.

Energy Transfer $ET

Energy Transfer is a leading U.S. provider of midstream energy services, specifically focused on the transportation of natural gas and other energy products. This "boring" company, as some might call it, is exactly the type of stock that Cooperman prefers for its stability and value potential.

Energy Transfer is benefiting from the growing demand for natural gas. In the past two years, it has secured contracts to deliver an additional 500,000 MMBtu per day, and its ambitions are even bigger. Going forward, it plans to expand capacity and seeks additional interconnection, which would increase its supply by more than 5 Bcf per day.

Energy Transfer is also actively consolidating the market, having completed two major acquisitions last year - buying Lotus Midstream for $1.5 billion and completing a $7.1 billion merger with Crestwood Equity Partners. These strategic expansions put the company in an even better position for continued growth.

Vertiv Holdings $VRT

Vertiv Holdings is another Cooperman favorite that is benefiting from the growing demand for digital infrastructure, especially as IoT and cloud technologies grow. Over the past three years, Vertiv's stock has risen more than 400%, primarily driven by growing interest in data center and AI-related technologies.

What makes Vertiv interesting is its rapid growth. In the second quarter of this year, the company reported free cash flow of $333 million, on very favorable debt to EBITDA of 1.8 times net debt. With these results, the company raised its forecast for both revenue and earnings growth.

Vertiv continues to invest in research and development, enabling it to take advantage of new opportunities in the data center and digital infrastructure market. According to Cooperman, Vertiv has a bright future ahead of it and is a stock that any long-term investor should consider.

Disclaimer: There is plenty of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always do a thorough analysis of your own.

Source: 247wallst.com