Crispin Odey’s Betting Big On Airlines: Delta Air Lines, Inc. (DAL), United Continental Holdings Inc (UAL)

Crispin Odey founded Odey Asset Management Group in 1991. Odey Asset Management is a London-based hedge fund with assets under management of about $6.2 billion. Recently, Odey has filed his 13F form with the Securities and Exchange Commission, disclosing all of its equities at the end of the second quarter. It’s worth it to track top-tier hedge funds for their market-beating potential.

Crispin OdeyOdey’s position in Delta Air Lines, Inc. (NYSE:DAL) involves about 11.7 million shares and is worth $219.1 million. During the second quarter of the year, the hedge fund’s position in Delta Air Lines, Inc. (NYSE:DAL) was reduced by some 1.8 million shares. The stock of Delta Air Lines returned over 60% since the beginning of the year, and it trades at a forward P/E of 6.5x.

The air transportation company, Delta Air Lines, Inc. (NYSE:DAL) has the largest market cap among all major airlines operators, which amounts to over $16 billion. At the same time, many important names from the hedge fund world are invested in the company, such as: George Soros’ Soros Fund Management, Robert Raiff’s Raiff Partners, and David Tepper’s Appaloosa Management.

The next two positions are represented by Signet Jewelers Ltd. (NYSE:SIG) and Wells Fargo & Co (NYSE:WFC). Odey disclosed ownership of 3.2 million shares of Signet Jewelers Ltd. (NYSE:SIG) and 4.4 million shares of Wells Fargo. The value of the stakes amounts to $218.1 and $179.8 million respectively. The hedge fund has been bullish on both companies during the second quarter of the year, purchasing about 700,000 shares of Signet Jewelers Ltd. (NYSE:SIG) and almost 45,000 shares of Wells Fargo & Co (NYSE:WFC). Signet has a year-to-date return of slightly below 40%. Wells Fargo’s stock returned above 26% since the beginning of the year.

In United Continental Holdings Inc (NYSE:UAL), Odey’s stake is worth $138 million and contains some 4.4 million shares. In the previous round of 13F filings, the hedge fund disclosed ownership of 4.1 million shares, the value of the stake amounting to $131.4 million. United Continental Holdings Inc (NYSE:UAL)’s stock has a solid return of about 29% since January. At the same time, United Continental Holdings Inc (NYSE:UAL) sports a forward P/E of 6.x and its earnings per share have an estimated growth rate of almost 60% over the next five years.

Lastly is the $112.3 million position held by Odey Asset Management in Quanex Building Products Corporation (NYSE:NX). The stake involves about 6.7 million shares, up by 4.6 million shares over the quarter. Quanex Building Products Corporation (NYSE:NX)’s dividend yield amounts to 0.93%, and its stock has a negative return of -16% this year. However, Quanex Building Products Corporation (NYSE:NX)’s expected EPS growth for the next year amounts to over 580%.

With this in mind, we will monitor the activity of Odey Asset Management and keep you updated regarding the latest moves made by Crispin Odey into Delta Air Lines, Inc. (NYSE:DAL), Signet Jewelers Ltd. (NYSE:SIG) and Quanex Building Products Corporation (NYSE:NX), since the big plays made into these companies during the last quarter could be helpful for retail investors as well.

Recommended reading: Arrowstreet Capital’s Top Picks

Disclosure: none

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