$2 Billion Hedge Fund Seminole Capital’s Top Stock Picks for 2013

Total S.A. (NYSE:TOT), a global oil major, was another of Seminole’s favorite stocks. As with many other oil majors, the stock is cheap from an earnings perspective with trailing and 2013 P/Es of 9 and 7 respectively. The dividend yield is high here as well, though business has not been particularly strong recently and of course as an oil and gas company it is exposed to commodity prices. We do think that it is cheap enough to consider alongside other majors including BP plc (NYSE:BP) and Exxon Mobil Corporation (NYSE:XOM). Arrowstreet Capital initiated a position in Total between July and September.

Seminole cut its stake in General Electric Company (NYSE:GE), but at 3.9 million shares the conglomerate was still one of its largest holdings going into 2013. Fisher Asset Management, managed by billionaire Ken Fisher, reported a position of over 30 million shares at the end of September (find Fisher’s favorite stocks). GE is another stock with a decent dividend yield, above 3%, and with a trailing P/E in the high teens. The company experienced growth on both top and bottom lines last quarter compared to the same period in 2011.

The fund was also selling shares of Vodafone Group Plc (NASDAQ:VOD) during the quarter, but as with GE the mobile phone service is still a core holding in Seminole’s portfolio. Billionaire David Einhorn, head of Greenlight Capital, recently said in a letter to investors that he believes that Verizon Communications Inc. (NYSE:VZ) could acquire the company. Yields are good here as well, though the stock has fallen slightly in the last year against a rising market on disappointing performance.

Disclosure: I own no shares of any stocks mentioned in this article.