Hedgie Hot Stock: High-Yielding, Defensive Play
Amid the Gulf oil spill, a falling euro and pending financial regulatory reform, where was the big money going to work?
Reynolds American is the Hedge Fund Trade of the Week, says Anthony Scaramucci of Skybridge Capital. The Winston-Salem, N.C.-based company has a great dividend of 6.9% yield. It also outperformed the S&P 500 by 20% in the past two years.
Scaramucci says asset managers are looking for companies like this to avoid the oil spill in the Gulf, the European debt crisis and the debate over financial regulatory reform. He thinks RAI is a safe, defensive name.
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