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Halftime: Hedge Fund Giant Bets Big on This Hot Stock

Famed hedge fund manager David Einhorn has upped his stake in Carefusion to 6 percent from roughly 4 percent.

Based in San Diego, Carefusion is a medical technology company, whose CEO appeared on the "Fast Money Halftime Report" on Sept. 15. It's a name that both Guy Adami of Drakon Capital and Karen Finerman of Metropolitan Capital Advisors have spoke about on the "Fast Money" desk. Now trading at roughly $25 a share, Joe Terranova of Virtus Investment Partners thinks it could soon climb to $30.

It does seem Einhorn, president of Greenlight Capital, has a knack for making bets. The New York City-based hedge fund manager is known for shorting Lehman Brothers well ahead of the financial crisis. He started shorting the financial services firm in 2007 when it was reporting record profits. More than a year later, Lehman filed for bankruptcy and became the largest investment bank to collapse since 1990.

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GOLD HITS RECORD HIGHS... AGAIN

Gold again hit record highs Tuesday, as the US Dollar Index sunk to its lowest levels since February.

The rallies in gold and US Treasurys can be explained by European worries, said Veracruz founder Steve Cortes. He said Anglo Irish Bank, for example, has lost half its value in the past month.

Brian Kelly, founder of Kanundrum Capital, thinks the rally in gold has more to do with the Federal Reserve. After weak consumer confidence numbers were released Tuesday, the market sold off, he said. The concern is that the Fed will respond by printing more money and so investors are drawn to the precious metals. He's using options to hedge positions in junior miners and miners in general right now.

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CREDIT SUISSE DOWNGRADES TARGET

In midday trading Tuesday, shares of Target rebounded after the Minneapolis-based retailer caught a downgrade from Credit Suisse to 'neutral' from 'outperform.' The firm said the retail chain operator will likely have difficulty improving margins with the addition of groceries.

For her part, Patty Edwards of Trutina Financial is concerned about margins. Edwards doesn't think groceries will draw in enough customers to offset the cost. Along with Brian Kelly of Kanundrum Capital, she would rather go with Walmart because it continues to grow internationally.

Steve Cortes, founder of Veracruz, would avoid retail all together. Retailers can't be strong so long as there's systemic unemployment in the US, he argued.

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CALL TO THE FLOOR: MAKEMYTRIP

Following its initial public offering, shares of MakeMyTrip climbed by 89 percent in its first day of trading, which is the largest one-day pop in nearly three years.

Deep Kalra, CEO of MakeMyTrip, appeared on Tuesday's "Fast Money Halftime Report" to talk about what's ahead for India's largest online travel company.

Watch the video to see the full interview.

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CALL THE CLOSE

Brian Kelly, founder of Kanundrum Capital, is a buyer of the market on the belief that the S&P 500 Index will push through the 1,150 level Tuesday.

"I'm a seller," countered Steve Cortes, founder of Veracruz. "Storm clouds over Europe."

Patty Edwards, principal of Trutina Financial, doesn't like Europe either. If you're holding the euro, she recommends getting out.

"I think right now it's the comfort assets of September that are going to rally as we go into the quarter end here," said Joe Terranova, chief market strategist of Virtus Investment Partners.

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Trader disclosure: On September 28, 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 (APA), (AAPL), (ARUN), (BMO), (C), (IBM), (HES), (JOYG), (XBI), (FTO), (OXY), (ORCL), (PEP), (POT), (RSH), (SU), (RIG), (UPL), (VRTS); Cortes is short (XLF); Cortes is short (BAC); Cortes is short (LVS); Cortes owns German Treasuries; Cortes is short the British Pound; Cortes is short corn

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 (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 (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 (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DLUEY)
Virtus Investment Partners own more than 1% of (DRYS)

For Brian Kelly
Accounts managed by Kanundrum Capital own (GLD)|
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (ATI)
Accounts managed by Kanundrum Capital own (TIE)
Accounts managed by Kanundrum Capital own (PCL)
Accounts managed by Kanundrum Capital own (LPX)
Accounts managed by Kanundrum Capital own (RAX)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (GPRE)
Accounts managed by Kanundrum Capital own (TIP)
Accounts managed by Kanundrum Capital are short (XLF)
Accounts managed by Kanundrum Capital are short (IAI)
Accounts managed by Kanundrum Capital are short (FDX)
Accounts managed by Kanundrum Capital are short (BCS)
Accounts managed by Kanundrum Capital are short (HYG)

For Patty Edwards
Edwards owns (AAPL) for clients
Edwards owns (HPQ) for clients
Edwards owns (DELL) for clients
Edwards owns (WMT) for clients
Edwards owns (COST) for clients
Edwards owns (VXX) for clients
Edwards owns (GLD) for clients
Edwards owns (PGM) for clients
Edwards owns (SLV) for clients
Edwards owns (SPY) for clients

For Brian Marshall
***No disclosures***

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