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Hedge Fund Trade of the Week: CVS

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 CVS Caremark. You may think of CVS as the drug store on the corner where you pick up shampoo or sun tan lotion but it’s also pharmacy benefits management service or PBM.

”With the 2007 merger of CVS Corporation and Caremark Rx, Inc., we've become an integrated provider of prescriptions and related health services with an unmatched breadth of capabilities,” says the company’s website.

Check out some of the company’s stats:

CVS Caremark (CVS)
Sector: Services
Industry: Retail Drugs
Based in: Woonsocket, RI
Market Cap: $45.2 billion
52-week high: $37.82
52-week low: $26.84

Anthony Scaramucci tells the desk he thinks the stock is a value. He sees major costs savings going forward due to the merger.

”If you look at the sum of the part analysis the stock should trade $42-$46 over the next 12-18 months.”

And it’s not just Scaramucci that likes it.

Other top hedgies including George Soros, Joel Greenblatt of Gotham Asset Management and John Keeley, of Keeley Asset Management also hold it.

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 March 17, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders;

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terranova owns (vrts); terranova owns (c); terranova owns (gs); terranova owns (pnc); terranova owns (usb); terranova owns (jpm); terranova owns (upl); terranova owns (cree); terranova owns (ms); terranova owns (pbr); terranova owns (bax); terranova owns (teva); terranova owns (ibm); terranova owns (btu); terranova owns (cnx); terranova owns (pot); terranova owns (flx); terranova owns (xom); terranova owns (dis); terranova owns (mcd); terranova owns (cve); terranova owns (cvi); terranova owns (cnq); terranova owns (rsx); terranova owns (su); terranova owns (Fcx)

adami owns (agu); adami owns (btu); adami owns (c); adami owns (gs); adami owns (intc); adami owns (msft); adami owns (nue)

jon najarian owns (aapl), is short (aapl) calls; jon najarian owns (brk.b), is short (brk.b) calls; jon najarian owns (cboe), is short (cboe) calls; jon najarian owns (cme), is short (cme) calls; jon najarian owns (nyx), is short (nyx) calls; jon najarian owns (cnx), is short (cnx) calls; jon najarian owns (crm), is short (crm) calls; jon najarian owns (chs), is short (chs) calls; jon najarian owns (cstr), is short (cstr) calls; jon najarian owns (hk), is short (hk) calls; jon najarian owns (kwk), is short (kwk) calls ; jon najarian owns (mtw), is short (mtw) calls; jon najarian owns (nyx), is short (nyx) calls; jon najarian owns (paas), is short (paas) calls; jon najarian owns (slv), is short (slv) calls; jon najarian owns (wnr), is short (wnr) calls; jon najarian owned (wmt), was short (wmt) on 2/15/11 ; jon najarian owns (jrcc), is short (jrcc) calls

For Brian Kelly
Accounts Managed By Kanundrum Capital own (FXY) puts
Accounts Managed By Kanundrum Capital own (NFLX) puts
Accounts Managed By Kanundrum Capital own (UUP)
Accounts Managed By Kanundrum Capital own (TLT)
Accounts Managed By Kanundrum Capital own U.S. Dollar Index
Accounts Managed By Kanundrum Capital own (GLD)
Accounts Managed By Kanundrum Capital own (SLV)
Accounts Managed By Kanundrum Capital own (VLO)
Accounts Managed By Kanundrum Capital own (EWJ) calls and (EWJ) puts
Accounts Managed By Kanundrum Capital are short (EWJ)
Accounts Managed By Kanundrum Capital are short S&P Futures.
Accounts Managed By Kanundrum Capital are short (IXG)
Accounts Managed By Kanundrum Capital are short (XLF)
Accounts Managed By Kanundrum Capital are short (LOW)
Accounts Managed By Kanundrum Capital are short (EWY)

For Joe Terranova
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NCRI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (DOM)

For Andy Busch
**No Disclosures

For Carter Worth
**NO DISCLOSURES

For Anthony Scaramucci
SkyBridge Capital Is A Fund Of Funds Manager
Funds Held May Or May Not Own The Recommended Securities

For Len Brecken
Brecken Is Short (NFLX)

SOT Brian Meredith ( 3/17/2011)
**No Disclosures

For Scott Nations
Nations Is Long S&P Implied Volatility




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