Metaldyne Performance Group Inc (MPG): Levin Capital’s Latest Move and its Top Three Picks

Pfizer Inc. (NYSE:PFE) is Levin Capital’s top pick as of the end of the last quarter, with a stake amounting to 10.52 million shares, valued at $327.84 million. The position accounts for almost 5% of its equity portfolio, after the hedge fund increased its exposure to the stock by around 4% last quarter. Pfizer Inc. (NYSE:PFE) is one of the most popular Dow stocks among hedge funds, with a total of 86 investors holding a long position in the company by the end of 2014. Ken Fisher’s Fisher Asset Management is one of the biopharmaceutical company’s largest shareholders among institutional investors, holding 31.19 million shares, valued at around $971.77 million as of the end of 2014. Over the past year,  Pfizer Inc. (NYSE:PFE)’s stock gained 8.55%, and is currently hovering around its 52-week high of $35.45 per share.

The second-largest position in Levin Capital’s equity portfolio in terms of value is represented by Eaton Corp plc (NYSE:ETN). The hedge fund disclosed ownership of 4.10 million shares of the company last quarter, following a 12% increase in its exposure to the stock. Although its share price dropped by around 9.85% over the past 52 weeks, analysts have mixed feelings towards Eaton Corp plc (NYSE:ETN). Its fourth quarter performance showed positive signs, as the company’s earnings per share beat estimates, and revenues proved to be higher than expected. Analysts at Barrons.com expect the stock to grow around 20% over the next year on the back of rising earnings. Levin Capital has held a stake in the company for several years, hence suggesting it is interested in its long-term growth potential. Last quarter, Andreas Halvorsen’s Viking Global turned bullish on Eaton Corp plc (NYSE:ETN), entering a position of 1.79 million shares, valued at around $121.78 million.

Finally, Levin Capital also held General Electric Company (NYSE:GE) among its top 3 picks last quarter. The position amounts to 10.80 million shares, which were valued at $273.10 million at the time of the 13F filing. Although the stock’s share price dropped around 4% over the past 52 weeks, numerous hedge funds hold a stake in the company. Fisher Asset Management, for example, owns 30.27 million shares, while Phillip Gross and Robert Atchinson’s Adage Capital Management holds 20.40 million shares. Although General Electric Company (NYSE:GE)’s share price remains quite stable, it has a forward dividend yield of 3.6%, which is quite high compared to the 1.99% forward dividend yield of the S&P 500. In addition, analysts consider General Electric Company (NYSE:GE)’s valuation to be quite appealing at the moment, making it a great income stock.

Disclosure: none.