Does Delta Air Lines, Inc. (DAL)’s Expanded NBA Deal Make It A Buy?

What have hedge funds been doing with Delta Air Lines, Inc. (NYSE:DAL)?

Heading into the second quarter, a total of 116 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 5% from the previous quarter. With hedgies’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their holdings considerably.

According to hedge fund intelligence website Insider Monkey, Lansdowne Partners, managed by Alex Snow, holds the biggest position in Delta Air Lines, Inc. (NYSE:DAL). Lansdowne Partners has a $1.11 billion position in the stock with 24.76 million shares comprising 10% of its 13F portfolio. The second-most bullish hedge fund manager is PAR Capital Management, led by Paul Reeder and Edward Shapiro, holding a $506.1 million position including 11.26 million shares; the fund has 11.7% of its 13F portfolio invested in the stock. Other members of the smart money that hold long positions comprise David Cohen and Harold Levy’s Iridian Asset Management, Doug Silverman and Alexander Klabin’s Senator Investment Group, and Ross Margolies’ Stelliam Investment Management.

Specific money managers have been driving this bullishness. GMT Capital, managed by Thomas E. Claugus, created the largest position in Delta Air Lines, Inc. (NYSE:DAL). GMT Capital had $241.2 million invested in the company at the end of the first quarter. James Dinan’s York Capital Management also initiated a $140.2 million position during the quarter. The other funds with brand new Delta Airlines positions are Curtis Macnguyen’s Ivory Capital (Investment Mgmt), Ross Margolies’ Stelliam Investment Management, and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.

The shares of Delta Air Lines have received a positive response from hedge fund investors and insiders, which makes it a candidate poised towards growth. We recommend a buy for the shares of the airliner.

Disclosure: None