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Hedge Fund Trade of the Week: Coach

Tuesday, 16 Nov 2010 | 5:41 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 …. Coach the widely known maker of luxury handbags, wallets, shoes and other accessories.

Check out some of the company’s stats:

Coach (COH)
Sector: Services
Industry: Retail Apparel
Based in New York City
52-week high: $53.20
52-week low: $32.96
Market Cap: 15 billion

If you think hedge funds pick stocks by looking at complicated technicals or complex momentum trends, think again.

Scaramucci tells the desk he likes Coach for a simple fundamental reason. “We think QE2 plus a tax cut extension will equal increased demand for luxury goods.”

As a result many high-end retailers should benefit but Scaramucci likes Coach best because “it’s a fantastic brand and they have very high margins.”

In case you’re wondering, it’s not just Scaramucci who’s bullish. SAC Capital also owns shares.

Hedge Fund Trade of the Week: Coach
The luxury retailer has increased revenues in each of the past ten years, with Anthony Scaramucci, SkyBridge Capital.

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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Trader disclosure: On November 16th, 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), (BAC); Seymour is short (FCX); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman owns (AAPL); Finerman owns (BAC); Finerman owns (JPM); Finerman’s firm owns (WMT); Finerman and Finerman’s firm owns (JCG); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (IJR); Finerman's Firm Is Long Russell Puts; Finerman's Firm Is Long S&P Puts; Pete Najarian owns (BAC); Pete Najarian owns (SLV) and call spreads; Pete Najarian owns (CNI); Pete Najarian owns (F) Bonds; Pete Najarian owns (FIRE)

For Simon Baker
Baker owns (AAPL) for clients
Baker owns (ANN) for clients
Baker owns (BAC) for clients
Baker owns (C) for clients
Baker owns (RIMM) for clients

For Mark Chandler
***No Disclosures***

For Anthony Scaramucci
Scaramucci and SkyBridge Capital own (COH)

For Dan Nathan
***No Disclosures***


CNBC.com with wires.

  Price   Change %Change
COH
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