Hedge funds are bidding up this stock
It's nearly three-centuries old but these days, Sotheby's is giving investors returns to rival a few young Internet companies. And that has gotten it noticed by some of the world's biggest fund hedge managers.
Anthony Scaramucci, Founder and Co-Managing Partner at SkyBridge Cpaital and a CNBC contributor, says Sotheby's is the stock hedge fund managers are talking about these days. SkyBridge manages over $8 billion and is also the organizer of the annual SALT Conference, one of the most important gatherings of fund managers in the world. Few people are as in-touch with what hedge funds are doing than Scaramucci.
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Some of the big names include Daniel Loeb's Third Point and Nelson Peltz's Trian; they each own more than 3% of the company. Mic McGuire's Marcato Capital owns about 7% of the auction company.
"Sotheby's, on a fundamental basis, is a stock that a lot of very smart fund managers like," says Scaramucci. "This is a hedge against inflation. Remember they get a percentage on things real estate, art, and wine."
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But do the charts agree with what the so-called "smart money" has been bidding on as of late?
Taking a look at Sotheby's charts is Talking Numbers contributor, Richard Ross, Global Technical Strategist at Auerbach Grayson. He says the charts give reason to believe the paddles will continue being raised on this stock.
To hear more from Scaramucci and Ross on why fund managers are buying Sotheby's, watch the video above.