Aerojet Rocketdyne Bids $2 Billion For This Boeing Co (BA) – Lockheed Martin Corporation (LMT) Joint Venture

We can now take a quick look at hedge funds’ sentiment on Boeing Co (NYSE:BA) and Lockheed Martin Corporation (NYSE:LMT). There were 44 hedge funds tracked by Insider Monkey that had positions in Boeing at the end of the most recent quarter, compared with 50 reported at the end of the first quarter. Nevertheless, the value of these positions increased to $1.60 billion from $1.33 billion during the second quarter. Phill Gross and Robert Atchinson’s Adage Capital Management significantly boosted its stake in Boeing during the quarter to nearly 2.46 million shares, making it the largest equity holder in the world’s largest aerospace company within our database. At the same time, Doug Silverman and Alexander Klabin’s Senator Investment Group initiated a new 1.5 million-share position in the company during the quarter.

Moving on to the other owner of the joint venture, the total number of hedge funds within our database with stakes in Lockheed increased to 36 from 29 during the second quarter, whereas the value of these stakes shrank to $1.13 billion from $1.33 billion. First Eagle Investment Management and Cliff Asness’ AQR Capital Management are the largest shareholders of Lockheed Martin Corporation within our database, owning 2.69 million shares and 968,458 shares, respectively.

To sum up, both Boeing Co (NYSE:BA) and Lockheed Martin Corporation (NYSE:LMT) are likely to benefit from the $2 billion offer, but this will eventually cut off a revenue stream for these companies. Nevertheless, a potential deal could actually offset the revenue reductions associated with the joint venture and could also reduce the risks related to the partnership.

Disclosure: None