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.
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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> 10 Top Stocks for the Long-Term Investor
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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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