BP plc (ADR) (BP), Freeport-McMoRan Copper & Gold Inc. (FCX) Among This Hedge Fund’s Top Picks

Y/Cap reported a position of almost 240,000 shares in Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX). The company’s stock price had fallen in December after Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) announced an acquisition of two oil and gas exploration and production companies, and combined with a questionable macro situation (copper is often thought of as a barometer of the global economy) the stock is now down 12% in the last year against a market which is up 20%. There’s also a decent dividend yield here, at 4%.

Haydon and his team had about 160,000 shares of Realogy Holdings Corp (NYSE:RLGY), a $7.4 billion market cap operator and franchisor of real estate brokerages, in their portfolio at the beginning of April. The company, which counts Coldwell Banker and Century 21 among its brands, has been unprofitable in the past couple of quarters. Analyst consensus for 2014 values the stock at a forward P/E of 20, despite the fact that revenue grew only 9% last quarter compared to the first quarter of 2012.

We’d recommend avoiding Realogy Holdings Corp (NYSE:RLGY), and while Frontier does have an attractive dividend yield it might be safer to look at larger telecoms even those which are less generous on the income front. We aren’t a fan of Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX)’s acquisition plans, but will acknowledge that it’s possible that the market has already accounted for any integration risks or other factors which could destroy shareholder value. BP plc (ADR) (NYSE:BP) and SeaDrill complement their dividends by being somewhat cheap (at least in the context of potential growth in Seadrill Ltd (NYSE:SDRL)’s case) and look worthy of further research.

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