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Hedge Fund Trade Of The Week: Dr. Pepper Snapple Group

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 long… Dr. Pepper Snapple Group.

Check out some of the company’s stats:

Dr. Pepper Snapple Group (DPS)
Sector: Consumer
Industry: Beverages
Based in Plano TX
52-week high: $40.24
52-week low: $25.57
Market Cap: $8.1 billion

Scaramucci likes this stock for a slew of reasons. “It trades around 16 times earnings which makes it slightly cheaper than Coke which trades at 19 times earnings,” he says.

Also, “it has a great balance sheet, 2.9% dividend yield and operating margins of 15.5% over the past 5 years.”

He also likes that it’s owned by Nelson Peltz' of Trian fund.

And as icing on the cake, “it could be a potential takeover target,” he adds.

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 Oct.19, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Grasso owns (ASTM), (BA), (BAC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE), (PRST); Cortes is short oil; Cortes is short gold; Cortes is short the Euro; Cortes is short (RSX); Cortes owns the S&P 500;Finerman owns (AAPL); Finerman & Finerman’s firm own (BAC); Finerman & Finerman’s firm own (JPM); Finerman’s firm owns (IBM); Finerman’s firm owns (SKS); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts; Pete Najarian owns (AAPL) call spread; Pete Najarian owns (BAC); Pete Najarian owns (CRUS); Pete Najarian owns (MS); Pete Najarian owns (YHOO); Pete Najarian owns (DO); Pete Najarian owns (DD); Pete Najarian owns (CNI); Pete Najarian owns (NOV); Pete Najarian owns (TEVA); Pete Najarian owns (NFLX) call spread; Pete Najarian owns (BMC) call spreads; Pete Najarian owns (AKAM) call spreads; Pete Najarian owns (RDN) call spreads; Pete Najarian owns (STX) call spreads; Pete Najarian owns (TSO) call spreads; Pete Najarian owns (LNC) call spreads

For Steve Grasso:
Stuart Frankel & Co and it’s partners own (COG)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (OPEN)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners are short (QQQQ)

For Brian Kelly
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (TIP)
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (REE)
Accounts managed by Kanundrum Capital own (MCP)
Accounts managed by Kanundrum Capital own (JEF)
Accounts managed by Kanundrum Capital own (UUP)
Accounts managed by Kanundrum Capital own (PCL)
Accounts managed by Kanundrum Capital own (LPX)
Accounts managed by Kanundrum Capital own the Swiss Franc
Accounts managed by Kanundrum Capital are short the UK Pound
Accounts managed by Kanundrum Capital are short the Mexican Peso

For Rich Ilczyszyn
***No Disclosures***

For Anthony Scaramucci
Scaramucci and SkyBridge Capital own (DPS)

For Scott Nations
***No Disclosures***

For Paul Miller
***No Disclosures***

For Jordan Rohan
Stifel, Nicolaus & Company, Inc. or an affiliate is acting as exclusive financial advisor to Rivals.com in its pending sale to (YHOO)
Stifel, Nicolaus & Company, Inc. makes a market in (YHOO)
Stifel, Nicolaus & Company, Inc. expects to receive or intends to seek compensation for investment banking services from (YHOO) in the next 3 months.





CNBC.com with wires.