What do you get when you combine politics and business?

You get Generation Investment Management, the hedge fund founded by Al Gore, 45th vice president of the U.S., and David Blood, the former CEO of Goldman Sachs Asset Management, a division of Goldman Sachs (GS). Their fund, which has the nickname of "Blood and Gore," has reportedly outperformed its benchmarks historically.

Al Gore, who is also a senior advisor to Google (GOOG), which recently proposed a $4.4 Trillion U.S. energy plan involving the replacement of all coal-fired and oil-fired electricity generation with natural gas and renewable electricity. Google, which is down around 60% for the year, had its target price lowered by Bank of America last week from $650 to $500 due to lower guidance. The stock has a P/E ratio of 16, which is in line with other search engine companies such as Yahoo! (YHOO), which has a 17 P/E. Google has a PEG ratio of 0.68, which is below the industry average of 0.78.

One of the stocks owned by Gore's Generation Investment Management is Cisco Systems (CSCO), the maker of networking products. The company, which rated hold by TheStreet.com Ratings, has scheduled its earnings announcement for Feb. 4, 2009. The stock has a P/E of 12 and a PEG ratio of 0.93.

Cisco is also owned by Clough Capital, a hedge fund based in Boston with $3.2 billion under management. Clough's latest positions include National Fuel Gas (NFG), with a P/E of 10 and PEG of 2.22, and Seaspan (SSW), which has a P/E of 18 and a very low PEG ratio of 0.39 and was recently given a Don't Buy rating by Jim Cramer.

Another Al Gore favorite is General Electric (GE) , which happens to be one of Friday's 10 most-searched stocks on TheStreet.com. It has stated that its dividend, at a current yield of 7%, is solid for the next year. The stock has a P/E ratio of 9 and a PEG ratio of 0.92.

GE is also owned by the famous multibillionaire Warren Buffett. Buffett has also been a big buyer of ConocoPhillips (COP)/ with a a P/E ratio of 4 and a PEG ratio of 0.52, and Burlington Northern Santa Fe (BNI), which has a P/E of 13 and a PEG ratio of 0.89 and is one of three stocks that have held up during the bear market, according to Joe Terranova at CNBC's "Fast Money."

Check out the list of all the Al Gore stocks owned by Generation Investment Management, at Stockpickr.com.

Posted on Dec. 8, 2008