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Smart Money Strategy for Stock Market Trading

Top hedge fund manager Anthony Scaramucci reveals how the so-called smart money is positioning in this market to capture profits.

According to Scaramucci, who runs SkyBridge Capital, his hedge fund peers are putting money to work in long/short portfolios.

Long value stocks and short inferior fundamental stocks,” he says, a strategy leveraged by two of the most famous money pros in history Leon Cooperman andJulian Robertson.

Scaramucci goes on to explain the environment is attractive for this strategy because correlations are down. In other words fewer stocks are trading in tandem with the overall market.

However, he also says hedge fund pros will watch correlations carefully. If they go back up, hedgies will adjust their strategy.

And if you're looking for another idea all together, Scaramucci says "we still like the mortgage-backed space, too!"


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Trader disclosure: On Mar 12, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; P. Najarian is long AAPL; P. Najarian is long C; P. Najarian is long WFC calls; P. Najarian is long INTC; P. Najarian is long YHOO; P. Najarian is long JOYG calls; P. Najarian is long COP; P. Najarian is long PEP; P. Najarian is long HPQ; Scaramucci is long IBM; Scaramucci is long PFE; Scaramucci is long GS; Scaramucci is long JPM; Scaramucci is long PEP; Scaramucci is long DELL; Scaramucci is long HPQ

For Anthony Scaramucci
SkyBridge Capital Is A Fund Of Funds Manager
Anthony Scaramucci is one of 8 national finance chairs for Mitt Romney campaign
Scaramucci a fundraiser for Mitt Romney and has contributed to the Romney campaign

For Brian Kelly
Kelly is long SPY
Kelly is long IWM
Kelly is long KRE
Kelly is long TLT
Kelly is long GLD
Kelly is long SLV
Kelly is long US dollar
Kelly is long Mexican peso
Kelly is short Yen
Kelly is short Aussie $

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For Bill Schmitz
(PEP) Is an Investment Banking client of DBSI. Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from this company within the past year. This company has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities-related services.

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