Hedge Funds’ Favorite Truck and Freight Shipping Stocks

In this article we present hedge funds’ favorite truck and freight shipping stocks. Insider Monkey follows hedge fund managers because they have sought the edge in the market through extensive research on public companies and by seeking experts to guide them. We believe that by imitating the smartest investors around, rather than trading against them, we are more likely to beat the market. Based on the transactions of nearly 350 hedge funds compiled by Insider Monkey, here are the top 13 truck and freight shipping stocks held by hedge funds:

United Parcel Service, Inc. (NYSE:UPS)

Here are our discussions about the top 10 truck and freight shipping stocks among hedge fund managers:

1. United Parcel Service, Inc. (UPS): United Parcel Service, Inc. is a package delivery company operating domestically and internationally. UPS shed nearly 9% year to date, slightly more than S&P 500 index, which lost 8%. Thirty-seven hedge funds held the company last quarter. Jason Capello’s Merchants’ Gate Capital raised their stake by 32%, bringing them up to 3.5 million shares.

2. Old Dominion Freight Line, Inc. (ODFL): Old Dominion Freight Line, Inc. is a non-union, less-than-truckload motor carrier. Old Dominion lost 2% in the current year less than S&P500 ETF (SPY). The company was held by 21 portfolios in the second quarter. Vinik Asset Management, managed by Jeff Vinik, increased their position by 39% last quarter, which brought them to 1.8 million shares.

3. Knight Transportation, Inc. (KNX): Knight Transportation, Inc. provides multiple truckload transportation services. Knight Transportation decreased by 23% year to date, more than S&P 500. Nineteen portfolios held the company in the last quarter. Robert Rodriguez and Steven Romick’s First Pacific Advisors, LLC, shed 1% of their stake in the second quarter, dropping to 1.9 million shares.

4. Swift Transportation Company (SWFT): Swift Transportation Company is a transportation services company and a truckload carrier. Swift Transportation dropped 38% in the current year, much more than SPY. The company was held by 19 portfolios. Valinor Management, LLC, managed by David Gallo, raised their stake by 40% last quarter, giving them 6.7 million shares.

5. Arkansas Best Corporation (ABFS): Arkansas Best Corporations is a holding company engaged in motor carrier freight transportation through its subsidiaries. Arkansas Best shed 30%, significantly more than S&P 500 Index. Last quarter, the company was held by 17 portfolios. Chuck Royce’s fund, Royce & Associates, increased their position by 44% in the second quarter, which raised them to 2.8 million shares.

6. Werner Enterprises, Inc. (WERN): Werner Enterprises, Inc. is a transportation and logistics company engaged in hauling truckload shipments of general commodities in both interstate and intrastate commerce. Werner Enterprises gained 3% year to date, while S&P 500 shed 8%. Sixteen portfolios held this company in the second quarter. Fisher Asset Management, managed by Ken Fisher, decreased their position by 3% last quarter, bringing them to 1.6 million shares.

7. Landstar Enterprises, Inc. (LSTR): Landstar System, Inc. provides supply chain solutions and freight transportation services. While SPY lost 8% in the current year, Landstar System shed 2%. The company was held by 15 portfolios last quarter. Steven Cohen’s SAC Capital Advisors dropped their stake by 33% in the second quarter, which brought them to about 270,000 shares.

8. CNF, Inc. (CNW): CNF, Inc. or Con-way Freight, provides transportation, logistics and supply-chain management services. CNF shed 33% year to date, significantly more than S&P 500. In the second quarter, the company was held by 15 portfolios. David Tepper’s Appaloosa Management LP decreased their position by 22% last quarter, which brought them to approximately 554,000 shares.

9. Heartland Express, Inc. (HTLD): Heartland Express, Inc. provides short-to-medium haul truckload carrier. Heartland Express dropped 15% in the current year, more than SPY. Fourteen portfolios held the company last quarter. Ken Brodkowitz and Mike Vermut’s Newland Capital raised their stake significantly last quarter – 213% – giving them about 2 million shares.

10. Quality Distribution, Inc. (QLTY): Quality Distribution, Inc. operates a chemical bulk tank truck network in North America through its subsidiaries. Quality Distribution increased by 23% year to date, while S&P 500 dropped 8%. The company was held by 11 portfolios in the last quarter. Quincy Lee’s Teton Capital discarded 19% of their stake in the company, which brought them to about 675,000 shares.

Truck and freight shipping stocks fared worse as a group year to date, dropping by 12% while SPY lost 8%.