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Be Brave, Buy Europe: Josh Brown

Thursday, 23 Aug 2012 | 6:14 PM ET

Top trader Josh Brown says he’s hearing more and more big money managers are holding their noses and putting money to work in, yes – Europe.

“It’s become apparent that not every European company has a ton of exposure to the European banking system,” says Brown, who is author of The Reformed Broker blog.

And that’s the thesis behind the trade.

Time to Buy Europe?
Trader Josh Brown says with so much fear surrounding the euro zone, now may be a good time to look at companies headquartered in Europe.

Big money is seeking Europe-based companies that have limited exposure to their homeland.

Brown says the trade is finding those companies that do 50% of their business overseas and buying those stocks. (In this case overseas is here in the US or Latin America or some place other than Europe.)

“I’m seeing a lot of people put this trade on and I think it’s interesting.”

Of course that presents a problem - some of these companies don’t trade here in the US – what do you do about that?

Brown says a new product coming onto the market – an existing fund that’s being retooled just for this purpose.

“They’re going long Europe based multi-nationals that do business overseas and then they’re going to hedge out the euro versus the US dollar.”

The fund will trade under the ticker HEDJ – and Brown says it will begin trade on August 29th.

Posted by CNBC's Lee Brodie

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Trader disclosure: On August 23, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is long M; Karen Finerman is short SPY; Karen Finerman is short MDY; Karen Finerman is short IWM; Josh Brown is long AAPL; Josh Brown is long JPM; Josh Brown is long WFC; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long SMBL; Steve Weiss is long QCOM; Steve Weiss is long UGL; Steve Weiss is short AAPL PUTS; Steve Weiss is short VALE; Joe Terranova is long VRTS; Joe Terranova is long SBUX; Joe Terranova is long WFM; Joe Terranova is long AAPL; Joe Terranova is long CSTR; Joe Terranova is long CHKP; Joe Terranova is long EMC; Joe Terranova is long NXPI; Joe Terranova is long AAPL SEPT. $640 PUTS

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