The only thing more-closely guarded than their identities are their trades. That is, until now. Fast Money uncovers the stocks held near and dear by the most followed hedge funds. We’re talking the likes of Stevie Cohen, Ken Griffin and John Paulson. According to Goldman Sachs, these trades could be your ticket to beating the market.
First, we present a smoke play from the smoky back rooms of the Street; Altria . Everyone knows about its sizeable dividend but hedge fund managers like MO for its healthy balance sheet.
Right now, the fastest money is buying this stock on the suspicion management will load up more debt generating more cash for expansion and even more dividend increases.
Add in the fact the cigarette maker owns a giant stake in SABmiller and Altria looks as tasty as a cold beer on a hot summer day.
Here’s why hedge funds love Altria, explains Karen Finerman, Fast Money's resident hedge fund manager.
* Defensive Play
* Powerful Cash Flow
* Cheap Valuation
* Growth Potential
Personally, I’m bullish on Altria, she adds, especially if they can break into China. However, trade in the wake of a hedge fund with caution, she adds. In a volatile environment like this, if hedge funds are losing assets they sell whatever they can.
Make sure to check back on Wednesday for part 2 of our series, Hedge Fund Favorites.
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Trader disclosure: On Apr. 15, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (YHOO), (INTC), (MSFT); Finerman Owns (GS); Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns (MO), (MSFT), (PM), (SUN), (TSO), (VLO), (YHOO, (UFS); Finerman's Firm Is Short (SPG), (COF); Najarian Owns (AAPL), (AMR), (BIIB), (CSCO), (MSFT), (TSO), (XLF), (YHOO); Najarian Owns (LEH) Puts; Najarian Owns (WLT) Calls; Najarian Owns A Call Spread In (IBM); Najarian Owns A Call Spread In (INTC); Charles Schwab Is A Sponsor Of "Fast Money"