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Seminole Capital Management Co. is a New York based hedge fund incorporated in 1995. According to the latest 13F submission made to the SEC this May, the fund manages a total portfolio of more than $1,803 million. Most of the portfolio of the fund is composed of stocks and holdings from the technology sector, almost 1/3 of the total. The next big portion is reserved to stocks and holdings from the basic materials (mostly raw materials) industry, almost 1/4 of the portfolio. The rest of the portfolio is from the following sectors: financial services, general services, consumer goods, industrial goods, utilities and healthcare.

The fund has been managed since its inception by Michael Messner, who is also a partner in the company. Mr. Messner is a graduate of Georgia Tech Institute in Civil Engineering. He had various civil engineering position holdings in various companies in Atlanta, Georgia, and other cities but since 1995 he has been engaged in managing Seminole Capital. Being a good civil engineer helped him become an even better fund manager.

Seminole Capital has a total of 78 stocks in its portfolio. During last quarter it removed 11 securities from its portfolio and added eight new ones. They removed the following stocks:

Company Name

Ticker

Value

Activity

Return

AGRIUM INC

AGU

Sold Out

-7,4%

ARVINMERITOR INC

ARM

Sold Out

N/A

DOVER CORP

DOV

Sold Out

-7,1%

FORD MOTOR CO DEL

F

Sold Out

-10,5%

GENERAL MOTORS CO

GM

Sold Out

-7,0%

GOODYEAR TIRE & RUBR CO

GT

Sold Out

0,1%

LEAR CORP

LEA

Sold Out

-0,9%

MOTOROLA INC

MOT

Sold Out

N/A

RIO TINTO PLC

RIO

Sold Out

-6,4%

U S AIRWAYS GROUP INC NEW

LCC

Sold Out

-7,0%

TYCO ELECTRONICS LTD

TEL

Sold Out

1,0%

Except two of these stocks (Motorola Inc. and Arvinmeritor, Inc.), for which data is not available, seven of other had a negative return value ranging from -0.9% (Lear Corp.) to -10.5% (Ford Motor). Agrium and Dover Corp. also declined by more than 7%.

The eight new stocks added to the portfolio were:

Company Name

Ticker

Value

Activity

Return

BLACKROCK INC

BLK

1407

New

-6,9%

BOEING CO

BA

74034

New

-1,2%

HALLIBURTON COMPANY

HAL

7122

New

-3,5%

INTEL CORP

INTC

23654

New

6,8%

POTASH CORP SASKATCHEWAN

POT

1473

New

-6,3%

SANDISK CORP

SNDK

23771

New

-7,7%

TESORO CORP

TSO

2959

New

-21,6%

VALERO ENERGY CORP NEW

VLO

7500

New

-16,1%

Boeing Co. was Messner's largest stock purchase. Seminole had $74 million in BA at the end of March. The other two largest purchases were Intel and SanDisk . The Intel purchase has been very timely, The stock gained nearly 7%. Paul Ruddock's Lansdowne Partners bet more than $500 Million on INTC during the first quarter, as well.

Seminole sold almost all its Citigroup (NYSE:C) and Navistar (NYSE:NAV) holdings during the first quarter. Both of these stocks didn't perform well since then. Seminole also increased its holdings in BP (NYSE:BP), Fedex (NYSE:FDX), Chesapeake (NYSE:CHK), and Micron (NASDAQ:MU). Its best performing stocks were its utilities holdings. Below is a list of the most interesting positions from the retained stocks.

Company Name

Ticker

Value

Activity

Return

CITIGROUP INC

C

332

-95%

-14,2%

NAVISTAR INTERNATIONAL CORP

NAV

1964

-91%

-21,3%

MICRON TECHNOLOGY INC

MU

62275

36%

-26,4%

EXPEDIA INC

EXPE

15114

142%

19,5%

P P L CORP

PPL

3924

0%

7,9%

FIRSTENERGY CORP

FE

19253

0%

18,1%

D P L INC

DPL

3451

0%

10,8%

CISCO SYSTEMS INC

CSCO

26720

2413%

-11,8%

B P PLC

BP

140222

512%

-1,5%

CHESAPEAKE ENERGY CORP

CHK

12423

542%

-12,8%

FEDEX CORP

FDX

47430

582%

-8,7%

EMBRAER S A

ERJ

5096

967%

-9,5%

Overall Seminole's 13F portfolio is underperforming the S&P 500 index by 0.4 percentage points. However his three largest purchases outperformed it by 3 percentage points. We like concentrated portfolios and when a fund manager has several dozens of stocks in his portfolio, it is usually better to focus on his highest conviction purchases.

Source: Seminole Capital's Favorite Stock Picks