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Hedge Fund Bearish on This Hot Stock

We’re hearing that hedge funds are rather bearish on a hot stock. Which name may be heading for trouble?

Believe it or not, Anthony Scaramucci of Skybridge says it's Walmart !

Scaramucci -- affectionately nicknamed ‘The Hedge’ for obvious reasons – tells us he’s bearish, very bearish, on this name.

"The smartest hedge funds look for the residual reversal," he says. And he's seeing it in the nation's largest retailer.

(In case you're not familiar with the term residual reversal - it's an investment theory which suggests what’s moving up will move down if expectations are not met.)

“I think that's going to be the case in the he second half of the year in Walmart,” he says.

"Most of Walmart's production is in China and as the yuan strengthens it will crimp their operating margins," he says.

"Because of yuan appreciation I think their numbers come in lighter than expected," he says. "We think there will be a 10-15% correction in the name."

Neither Steve Grasso nor Patty Edwards are buying it. "Scaramucci has a good point if the contracts were denominated in yuan but the fact of the matter is, Walmart denominates their contracts in dollars," counters Edwards.


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Trader disclosure: On Apr 8, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Jon Najarian Owns (AAPL) Call Spreads; Jon Najarian Owns (AMZN) Call Spreads; Jon Najarian Owns (AMR) Call Spreads; Jon Najarian Owns (BAC) Preferred; Jon Najarian Owns (C) Preferred; Jon Najarian Owns (F), Is Short (F) Calls; Jon Najarian Owns (GS), Is Short (GS) Calls; Jon Najarian Owns (HPQ), Is Short (HPQ) Calls; Jon Najarian Owns (IGT) Calls; Jon Najarian Owns (JPM) Preferred; Jon Najarian Owns (JCG), Is Short (JCG) Calls; Jon Najarian Owns (LVS), Is Short (LVS) Calls; Jon Najarian Owns (MCD), Is Short (MCD) Calls; Jon Najarian Owns (MS) Preferred; Jon Najarian Owns (RIMM), Is Short (RIMM) Calls; Jon Najarian Owns (WMT) Calls, Is Short (WMT); Jon Najarian Owns (WFC) Preferred; Jon Najarian Owns (WYNN), Is Short (WYNN) Calls; Jon Najarian Owns (YHOO) Call Spreads; Jon Najarian Owns (AMR) Call Spreads; Jon Najarian Owns (HOTT); Jon Najarian Owns (CSCO), Is Short (CSCO) Calls; Terranova Owns (AXP), (EOG), (SWN), (FCX), (GLD), (POT), (TER), (YHOO); Terranova Is Short (XLY), (LCC), (FDX); Grasso Owns (ASTM), Grasso Owns (ABK),Grasso Owns (AAPL), Grasso Owns (BAC), Grasso Owns (BGP), Grasso Owns (C), Grasso Owns (CVGI), Grasso Owns (COST), Grasso Owns (JPM), Grasso Owns (NEM), Grasso Owns (PRST), Grasso Owns (WMT), Grasso Owns (PFE), Grasso Owns (BA). Grasso Owns (T); Edwards Owns (TM); Edwards Owns (UUP); Stutland Owns (MSFT); Stutland Equities Is A Market Maker In VIX And SPX Options; Kelly Owns (FXE) Puts; Cortes Owns (IAI), (MS), (GS); Cortes Is Short S&P Futures; Seymour Owns (AAPL),(F), (INTC)

For Tim Seymour
Seygem Asset Management Is Short (X)


For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLI)

For Steve Grasso
Stuart Frankel And Its Partners Own (CUBA)
Stuart Frankel And Its Partners Own (CVGI)
Stuart Frankel And Its Partners Own (GERN)
Stuart Frankel And Its Partners Own (HSPO)
Stuart Frankel And Its Partners Own (MERC)
Stuart Frankel And Its Partners Own (NWS.A)
Stuart Frankel And Its Partners Own (NXST)
Stuart Frankel And Its Partners Own (NYX)
Stuart Frankel And Its Partners Own (PDE)
Stuart Frankel And Its Partners Own (PFE)
Stuart Frankel And Its Partners Own (PRST)
Stuart Frankel And Its Partners Own (RDC)
Stuart Frankel And Its Partners Own (TLM)
Stuart Frankel And Its Partners Own (XRX)
Stuart Frankel And Its Partners Own (SDS)
Stuart Frankel And Its Partners Are Short (QQQQ)
Stuart Frankel And Its Partners Are Short (CL)
Stuart Frankel And Its Partners Are Short (AAPL)

For Patty Edwards
Edwards Owns (AAPL) For Clients
Edwards Owns (AMZN) For Clients
Edwards Owns (ANF) For Clients
Edwards Owns (BKE) For Clients
Edwards Owns (F) For Clients
Edwards Owns (GS) For Clients
Edwards Owns (GLD) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (HPQ) For Clients
Edwards Owns (INTC) For Clients
Edwards Owns (JCG) For Clients
Edwards Owns (JPM) For Clients
Edwards Owns (JWN) For Clients
Edwards Owns (MCD) For Clients
Edwards Owns (MS) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (NOK) For Clients
Edwards Owns (ORCL) For Clients
Edwards Owns (SPY) For Clients
Edwards Owns (TM) For Clients
Edwards Owns (WMT) For Clients
Edwards Owns (WFC) For Clients
Edwards Owns (YHOO) For Clients

For Athony Scaramucci
Skybridge Is Short (WMT)
Skybridge Is Short (GPS)
Skybridge Is Short (KSS)
Skybridge Is Short (LTD)
Skybridge Is Short (TIF)
Skybridge Is Short (RL)
Skybridge Is Short (JAS)
Skybridge Is Short (URBN)
Skybridge Is Short (JCG)
Skybridge Owns (INTC)
Scaramucci Owns (INTC)

For Hilary Kramer
A&G Capital Owns (GEOY)

For Luciano Siracusano
Siracusano Is Chief Investment Strategist Of WisdomTree And Is An Investor In WisdomTree ETFs

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