GO
Loading...

Hedge Fund Trade Of The Week: Ralph Lauren

Wednesday, 13 Oct 2010 | 5:48 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….. Polo Ralph Lauren .

Check out some of the company’s stats:

Ralph Lauren (RL)
Sector: Consumer Cyclical
Industry: Apparel / Accessories
Based in: New York, NY
52-week high: $95.59
52-week low: $72.12
Market Cap: $9.1 billion

As Heidi Klum so often says, ‘In fashion one day you’re in and the next you’re out.’

But don’t tell that to Ralph Lauren. He’s one of the few designers that’s not only survived but thrived season after season – with his signature polo shirts and oxfords now hanging in most every closet in America.

Hedge Fund trade of the Week
Hedge funds are still bullish on economy, with Anthony Scaramucci, SkyBridge Capital.

In fact, the clothing's broad appeal is one of the reasons Anthony Scaramucci likes this stock. ”We’re expecting a lot of growth in Southeast Asia and in Europe,” he says. So much growth that Scaramucci thinks it "could be reminiscent to what Nike had in the 1990’s."

And there are other attractive aspects to this stock. ”It has 15% operating margins, a billion dollars in cash on the balance sheet, and the company is trading at 19 times earnings for 2010.”

As for the icing on this cake, Scaramucci says it's a core holding of Lone Pine, a hedge fund run by Stephen Mandel - a protégé of hedge fund pioneer Julian Robertson at Tiger Managment.

>
Click here to check out other Hedge Fund Trade Of The Week posts

* 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.



______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our Web site send those e-mails to fastmoney@cnbc.com.

—Wire services contributed to this story

  Price   Change %Change
RL
---

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report