Hedge Fund Trade Of The Week: Ralph Lauren
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.
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.
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—Wire services contributed to this story