Big Gains For The S&P 500’s Gaming And Airline Additions

At the close of the second quarter, Millennium Management, led by billionaire Israel Englander, was the biggest shareholder of Activision Blizzard, Inc. (NASDAQ:ATVI) out of the funds we track, closing the quarter with 8.96 million shares valued at $216.91 million after raising its stake by 91% during the quarter. Other shareholders that boosted their stakes during the quarter include John Armitage‘s Egerton Capital Limited, and billionaire Ken Griffin’s Citadel Investment Group. On the other hand, GMT Capital, headed by Thomas E. Claugus, emerged as the biggest shareholder of United Continental Holdings Inc (NYSE:UAL) out of the funds we track, although it reduced its stake in the stock by 4% during the quarter. Billionaire Daniel S. Och‘s OZ Management and Cliff Asness’ AQR Capital Management are some of the hedge funds that raised their stakes in the stock during the quarter.

Given their addition to the coveted S&P 500 index (which our small-cap strategy has outperformed every year since its inception in 2012), we believe both stocks make for more attractive investments in the near-term. However, new additions to the index tend to swoon shortly after their initial jump, so get on them soon or hold off until they settle in.

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