Hedge Fund Trade of the Week: Scripps Networks Interactive

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 longScripps Networks Interactive, a leader in lifestyle media.

According to its website, since launching HGTV in 1994, Scripps Networks Interactive has become the dominant media and marketing company in the home, food and lifestyle categories. Brands include HGTV, DIY, Food Network, Travel Channel and more.

Check out the chart and some of the company’s stats:

Scripps Networks Interactive (SNI)
Sector: Services
Industry: Broadcasting and Cable TV
Based in: Cincinnati, OH
Market Cap: $8.1 billion
52-week high: $53.66
52-week low: $39.36

Anthony Scaramucci selects this stock as his Hedge Fund Trade of the Week because he thinks HGTV and Food Network “are fantastic brands.”

So strong are the brands, that Scaramucci thinks the stock is under-valued and over the next 12 months says it could trade between $65 and $80. He’s betting the catalyst will be share repurchases. “Management knows the company is about 25% under-valued. They’ll be pouring money back into shares,” he says.

Also he thinks the company could become a takeover target. “The cost of its content is among the lowest of the cable networks." All told, ”It’s a great long term hold,” he says.

And Scaramucci isn’t the only top hedgie who likes this stock. Lone Pine and John Paulson are also long.

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 May 23, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova owns (XOM); Terranova owns (KSS); Terranova owns (CVI); Terranova owns (OXY); Terranova owns (TM); Terranova owns (BJ); Terranova owns (DIS); Terranova owns (PFE); Terranova owns (V); Terranova owns (HPQ); Terranova owns (FLX); Terranova owns (JPM); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (VRTS); Terranova is short (DELL); Weiss owns (DRR); Weiss owns (UUP); Weiss owns (MRK); Weiss owns (DE); Weiss owns (BRCM); Weiss owns (AKAM); Weiss owns (KO); Weiss owns (ETP); Weiss owns (NS); Weiss owns (COP); Weiss owns DVN); Weiss owns (HK); Weiss owns (NAV); Weiss owns (TEVA); Weiss owns (TWM); Weiss owns (QCOM); Weiss owns (MDRX); Weiss owns (VZ); Weiss owns (HAIN); Weiss owns (MSFT); Weiss is short (X); Weiss is short ( AKS); Weiss is short (SHAW); Finerman and Finerman's firm own (AAPL); Finerman and Finerman's firm own (BP); Finerman and Finerman's Firm own (CMI); Finerman's Firm owns (IBM); Finerman owns (C); FInerman owns (JPM); Finerman's Firm owns (JPM) leaps and (JPM); Finerman's Firm owns (TGT); Finerman owns (UNG); Finerman's Firm is short (IWM), (MDY), (SPY); FInermans firm is long S&P Puts, Russell 2000 Puts; Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
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For Anthony Scaramucci
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Funds held May or May not Own the Recommended Securities

For Regis Philbin
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CNBC.com with wires.