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Hedge Fund Trade of the Quarter

Monday, 2 Apr 2012 | 5:43 PM ET

Remember the hedge fund trade of the week, the segment in which Anthony Scaramucci revealed where the fast money was finding opportunity?

We’ve brought it back – sort of.

We’re calling this the hedge fund trade of the quarter – Anthony Scaramucci of SkyBridge reveals where he and his smart money colleagues are putting money to work over the next 3 months.

Scaramucci’s trade is long Pfizer , Phillip Morris and/or any other “large cap US multinational with yield above the 10-year Treasury."

Scaramucci recommends this trade because he thinks the rally may be facing some headwinds. “At some point you have to ask yourself when the rally starts to fade,” he says.

Although he didn’t mention specifics, there’s chatter than a slowdown in Europe, a possible hard landing in China and other overseas factors may call the rally into question.

Ontop of the questionable fundamentals, there’s also seasonality at play. “Don’t forget that saying, sell in May and go away.” There’s a reason people say that.

The stocks mentioned above should continue to advance if the market remains strong, yet be realtively resilient in the event of market weakness. “Right now, I’d be more cautious," Scaramucci counsels.

Fast Money, April 2, 2012
CNBC's Melissa Lee and the Fast Money traders discuss the day's top trades and the stocks they'll be watching tomorrow.

Click here to check out past Hedge Fund Trade Of The Week posts

* Anthony Scaramucci runs SkyBridge Capital, a leading alternative asset manager with more than $7 billion under management. Regularly 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 Apr 2, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Anthony Scaramucci is long BAC; Anthony Scaramucci is long C; Anthony Scaramucci is long JPM; Anthony Scaramucci is long IBM; Anthony Scaramucci is long SBUX; Anthony Scaramucci is long AMZN; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long AGU; Guy Adami is long BTC; Jon Najarian is long AAPL CALL SPREADS; Jon Najarian is long AKS CALL SPREADS; Jon Najarian is long GS CALL SPREADS; Jon Najarian is long WNR CALL SPREADS; Jon Najarian is long JOY CALL SPREADS; Jon Najarian is long SBUX CALL SPREADS; Jon Najarian is long GDXJ CALL SPREADS; Jon Najarian is long FCX CALL SPREADS; Jon Najarian is long CBOE; Jon Najarian is long CIGX; Jon Najarian is long CME; Tim Seymour is long BAC; Tim Seymour is long CSCO; Tim Seymour is long GMCR; Tim Seymour is long FCX; Tim Seymour is long GFI; Scott Nations is long BAC; Scott Nations is long C; Scott Nations is long SPY

For Kevin McVeigh
Macquarie Group Limited together with its affiliates, beneficially owns 1% or more of a class of common equity securities of V

For Paul Newsome
Sandler O'Neill expects to receive or intends to seek compensation from EMC Insurance Group Inc. for investment banking services in the next three months.
As of the date of this report, Sandler O'Neill currently acts as a market maker in the securities of EMC Insurance Group Inc..
Sandler O'Neill has received compensation from EMC Insurance Group Inc. for providing products or services other than investment banking services in the 12-month period ending as of the second most recent month preceding the date of this report.

For Dennis Gartman
Dennis Gartman is long DSX
Dennis Gartman is long LMG
Dennis Gartman is long FRO
Dennis Gartman is long GOLD
Dennis Gartman is short S&P FUTURES
Dennis Gartman is short YEN



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