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Hedge Fund Trade of the Week: General Dynamics

Monday, 23 Aug 2010 | 5:34 PM ET

Where’s the fast money finding opportunity?

In this regular feature Anthony Scaramucci aka The Hedge reveals his latest greatest pick!

This week's trade is long General Dynamics, says Scaramucci. Here’s some particulars:

General Dynamics (GD)
- Aerospace, defense company
- Based in Falls Chruch, VA
- Sector: Capital Goods
- Industry: Aerospace, Defense
- Market Cap: $22.5 billion
- 52 Week Low: $56.10
- 52 Week High: $79.00

”This is a classically cheap stock and a value name,” says Scaramucci. “It’s trading at 8.4 times 2011 earnings and with a 2.8% dividend yield. Also it’s got $4.77 in cash on the balance sheet.”

”True, there’s a lot of uncertainty about defense budgets,” Scaramucci adds, “but this is worth owning as a value name.”

Hedge Fund Trade of the Week
A look at General Dynamics, with Anthony Scaramucci, SkyBridge Capital.

> Click here for recent 'Hedge Fund Trade of the Week' plays

* Anthony Scaramucci runs SkyBridge Capital, a leading alternative asset manager with more than $7 billion under management. Every week on Fast Money, Scaramucci, aka 'The Hedge', takes you behind the hedges, giving you an unprecedented look at the names getting the most chatter amongst the hedge fund community.



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Trader disclosure: On Aug 23, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (BX), (GOOG), (POT); Cortes owns (FCX), (SFD); Cortes owns (BHP); Cortes owns Crude Oil; Cortes is short (SPY); Cortes is short (XLF); Cortes is short Japanese Yen; Cortes is short U.S. Treasuries; Finerman owns (GOOG); Finerman’s Firm owns (HPQ); Finerman’s Firm owns (POT) calls; Finerman’s firm owns (WMT); Finerman owns (MOS); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts; Terranova owns (AXP), (C), (BMO), (V), (POT), (OXY), (GLD), (FCX), (APA), (SU), (XBI)

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (DRYS)
Virtus Investment Partners own more than 1% of (EXR)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (XLK)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)

For Brian Kelly
Accounts managed by Kanundrum Capital own U.S. Dollars
Accounts managed by Kanundrum Capital own Swiss Franc
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (TBT)
Accounts managed by Kanundrum Capital are short the U.K. Pound
Accounts managed by Kanundrum Capital are short the Peso
Accounts managed by Kanundrum Capital are short (XLF)
Accounts managed by Kanundrum Capital are short (AFL)
Accounts managed by Kanundrum Capital are short (MCO)
Accounts managed by Kanundrum Capital are short (IAI)

Anthony Scaramucci
SkyBridge Capital and Scaramucci own (GD)

Mike Khouw
***No Disclosures***

Jason Trennert
***No Disclosures***

Nishu Sood
Deutsche Bank owns 1% of more than any class of common equity of (TOL)
(TOL) is an investment banking client of Deutsche Bank

Dan Eggers
Credit Suisse provided investment banking services to the subject company (CMS) within the past 12 months.

Credit Suisse has received investment banking related compensation from the subject company (CMS) within the past 12 months.

Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (CMS) within the next 3 months.

Credit Suisse provided investment banking services to the subject company (PCG) within the past 12 months.

Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (PCG) within the next 3 months.

Credit Suisse provided investment banking services to the subject company (SO) within the past 12 months.

Credit Suisse provided non-investment banking services, which may include sales and trading, to the subject company (SO) within the past 12 months.

Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (SO) within the next 3 months.

Credit Suisse has received compensation for products and services other than investment banking services from the subject company (SO) within the past 12 months.

Credit Suisse provided investment banking services to the subject company (PGN) within the past 12 months.

Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (PGN) within the next 3 months.



—Wire services contributed to this story

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GD
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