×

Hedge Fund Trade of the Week: Aeropostale

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 longAeropostale, a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-olds; that’s according to the Aeropostale website.

Take a look at the chart and some of the company’s stats:

Aeropostale (ARO)
Sector: Services
Industry: Retail
Based in: New York, NY
Market Cap: $2.1 billion
52-week high: $32.24
52-week low: $21.26

Scaramucci selected this stock as his hedge fund trade of the week because he thinks it’s a value.

Aeropostale trades at a lower multiple than its peers. “JCrew just sold to a group of private equity buyers at something like 8 times EBITDA and this stock is trading at 4,” he says.

"It’s just a very cheap stock,” he adds.

Scaramucci also says it has “fantastic margins, a great return on equity, a great return on invested capital and great free cash flow yield.”

Also he thinks the stock may be oversold on the belief that teens will foresake this store for something more upscale such as Abercrombie & Fitch as the recovery takes hold, "but we're not seeing that."

And before the broadcast he told our producers that other top hedgies are in this name including George Soros, Ronald Muhlenkamp, and John Hussman.

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.



______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our Web site send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On January 5, 2010, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; 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 is long S&P puts; Finerman's firm is long Russell 2000 puts; Finerman owns (AAPL); Finerman owns (BAC); Finerman's firm owns (BBY); Finerman's firm owns shares of BMW; Finerman owns (BP); Finerman's firm owns (BP); Finerman's owns (GOOG); Finerman owns (HPQ); Finerman's firm owns (HPQ); Finerman's firm owns (IBM); Finerman owns (JPM) and (JPM) leaps; Finerman's firm owns (JPM) and (JPM) leaps; Finerman owns (MSFT); Finerman's firm owns (MSFT); Finerman's firm owns (WMT); Seymour owns (BX); Seymour owns (TSL); Seymour owns (VIP); Seymour owns (AA); Seymour owns (AAPL); Seymour owns (F); Seymour owns (FXI); Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Adami's wife works at (MRK); Terranova owns (GM); Terranova owns (C); Terranova owns (VRTS); Terranova owns (UPL); Terranova owns (PEP); Terranova owns (OXY); Terranova owns (GS); Terranova owns (SLW) puts; Terranova owns (GLD) puts; Terranova is short (SLV) futures

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NCRI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (CLB)

For Brian Kelly
Accounts Managed By Kanundrum Capital Own USD
Accounts Managed By Kanundrum Capital Own (TBT)
Accounts Managed By Kanundrum Capital Own (MS)
Accounts Managed By Kanundrum Capital Own (YGE)
Accounts Managed By Kanundrum Capital Own (ANDE)
Accounts Managed By Kanundrum Capital Own (MCP)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (SWC)
Accounts Managed By Kanundrum Capital Own (TM)
Accounts Managed By Kanundrum Capital Own (JPM)
Accounts Managed By Kanundrum Capital Own (WFC)
Accounts Managed By Kanundrum Capital Own (BBT)
Accounts Managed By Kanundrum Capital Own (OSK)
Accounts Managed By Kanundrum Capital Own (QCOM)
Accounts Managed By Kanundrum Capital Own (IPI)
Accounts Managed By Kanundrum Capital Are Short The Euro
Accounts Managed By Kanundrum Capital Are Short The Yen

For Brian Yu
A director of Citi serves on (AA) Board
Citigroup Global Markets or its affiliates owns 1% or more of (AA) , (CLF)
Citigroup Global Markets Or Affiliates Has Managed Or Co-Managed An Offering Of (AA) In Past 12 Months
Citigroup Global Markets or affiliates has received investment banking compensation for services provided within the past 12 months from (AA)
Citigroup Global Markets or affiliates expects to receive/seek investment banking compensation from (AA) , (CLF) In next 3 months
Citigroup Global Markets Inc. or an affiliate received non-investment banking from (AA) in the past 12 months
(AA) , (CLF) Is Or In Past 12 Months Was An Investment Banking Client Of Citigroup Global Markets
(AA) Is Or In Past 12 Months Was A Non-Investment Banking Client Of Citigroup Global Markets (Securities-Related Srvices)
(AA) Is Or In Past 12 Months Was A Non-Investment Banking Client Of Citigroup Global Markets (Non-Securities-Related Srvices)
Citigroup Global Markets or affiliate received compensation in past 12 months from (AA)
Citigroup Global Markets is a market maker in (AA)
Citigroup Global Markets And/Or Affiliates Has A Significant Financial Interest In Relation To (AA)

For Rohit Chopra
Wedbush Securities Is A Market Maker In (CSCO), (AAPL), (PLCM)
Wedbush Securities Provided Non-Investment Banking Securities-Related Services To (PLCM) Within Past 12 Months
Wedbush Securities Has Received Non-Investment Banking Compensation From (PLCM) Within Past 12 Months
}
Pete Najarian SOT
Pete Najarian owns (BAC) call spreads

For Mike Khouw
Khouw has no disclosures

Fast Fire SOT
Terranova had no disclosures on (GOOG) on 12/1/2010

GE is the parent company of CNBC
NBC Universal is the parent company of CNBC




CNBC.com with wires.