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.