Hedge Fund Trade of the Week: Coach
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:
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.
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)
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