Altimeter's Brad Gerstner Sells Travel Stocks, Buys These Growth Stocks: 'People Underappreciate The Size Of The Future Market'

Altimeter Capital chairman and CEO Brad Gerstner provided a long-term bullish outlook Wednesday, but added he is positioned for a short-term pullback in the markets.

"We expect the Nasdaq still has another 10% to 15% it can give back to us," Gerstner said in an interview at CNBC's "Delivering Alpha Conference."

A 10% to 15% correction would put stocks more in line with historical valuations in terms of multiples for growth stocks, he said, adding that such a correction would be healthy for the markets. 

Gerstner noted that Altimeter Capital's current net exposure is about 50% versus the 90% exposure the hedge fund had last year.

"At the same time, we’re deploying venture capital as aggressively as we ever have because we think the next 10 years is going to be a period of even more value creation than the last 10 years. The secular curve around technology and value creation is as steep as ever."

Portfolio Moves: Altimeter Capital sold its stake in Expedia Group Inc EXPE and United Airlines Holdings Inc UAL following the rebound in travel stocks.

Gerstner expects the pair of travel stocks to provide decent returns, but he noted the "easy gains off the COVID bottom" were realized. 

"We’ve rotated our portfolio just into better ideas and that’s what we get paid to do."

Gerstner said he bought into COVID-19 beneficiaries Zoom Video Communications Inc ZM and Peloton Interactive Inc PTON when the stocks pulled back from pandemic highs. 

"We thought that retracement provided an excellent point of entry," he said. "We think people underappreciate the size of the future market."

See Also: Cathie Wood Buys Another $6.5M In Robinhood, $6.3M In Peloton

The Altimeter Capital CEO said Snowflake Inc SNOW remains the hedge fund's largest position. He noted that he also has a lot of personal exposure to the data cloud company. 

"We think that this is going to be a very high returner," Gerstner said.