Anthony Scaramucci's Hedge Fund Trade Of The Week: Family Dollar Stores (FDO)

Anthony Scaramucci said on CNBC's Fast Money that Family Dollar Stores, Inc. (NYSE: FDO) is his pick for this week's "Hedge Fund Trade of The Week". He explained that Family Dollar Stores, Inc. (FDO) has consistently high margins, and its growth margin is about 35% over five years.

Family Dollar Stores, Inc. (FDO) has 15% return on capital, and it is a cheap stock as it trades at 13 times 2011 earnings.

Anthony Scaramucci said that John Paulson owns this stock, and Nelson Peltz announced that his company has just increased its stake in this stock.

Family Dollar Stores, Inc. (FDO) fell 0.75%, and closed at $40.98.