Hedge Fund Trade of the Week: May 26th

If volatility anxiety has you reaching for comfort food, you might want to make it Kraft Foods. It is the second largest food company in the world and Fast Money's ‘Hedge Fund Pick of the Week.’

Anthony Scaramucci of Skybridge Capital (aka The Hedge) likes Kraft for several reasons.

For starters, they recently absorbed Cadbury , which he says will provide for continued cost savings. Also, it has a 4% dividend yield. And he says it will be a growth stock, as the cost savings continue.

Karen Finerman has been in Kraft for some time and agrees with Scaramucci’s pick. She said she likes the Cadbury acquisition and also thinks it adds cost savings.

And cost inputs from grains and other 'softs' have never been cheaper, said Tim Seymour.

Editor's Note: Scaramucci's commentary begins at 17:54 of this video.

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Trader disclosure: On May 26, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (AXP), (BBY), (BMO), (BTU), (DIS), (FTO), (GLD), (IPSU), (OIH), (PFE), (RSX), (STLD), (SWN), (TER), (XCO), (YHOO) Kelly Owns (FCX) Calls; Kelly Owns (CLF) Calls; Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Calls; Finerman Owns (BAC), (BAC) Preferred; Finerman Owns (GOOG); Finerman Owns (GS) Calls; Finerman's Firm And Finerman Own (HPQ); Finerman's Firm Owns (JPM), (J)PM) Calls; Finerman Owns (JPM); Finerman's Firm And Finerman Own (RIG), (RIG) Calls; Finerman's Firm Owns (KFT); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM); Finerman's Firm Owns (PM); Jon Najarian Owns (BAC); Jon Najarian Owns (BP); Jon Najarian Is Short (MCO); Jon Najarian Owns (C); Seymour Owns (BAC), (AAPL), (GOOG), (VIP

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