Hedge Funds Are Betting On Spirit Airlines Incorporated (SAVE)

Should Spirit Airlines Incorporated (NASDAQ:SAVE) investors track the following data?

Now, according to many of your fellow readers, hedge funds are viewed as delayed, outdated investment tools of an era lost to time. Although there are over 8,000 hedge funds trading today, this site focuses on the upper echelon of this club, close to 525 funds. It is widely held that this group has its hands on the majority of the hedge fund industry’s total assets, and by paying attention to their highest quality stock picks, we’ve deciphered a number of investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 33 percentage points in 11 months (find the details here).

Just as key, bullish insider trading activity is another way to analyze the financial markets. Obviously, there are a number of reasons for an executive to sell shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this strategy if you understand what to do (learn more here).

Keeping this in mind, let’s examine the recent info about Spirit Airlines Incorporated (NASDAQ:SAVE).

Spirit Airlines Incorporated (NASDAQ:SAVE)

How have hedgies been trading Spirit Airlines Incorporated (NASDAQ:SAVE)?

At the end of the second quarter, a total of 20 of the hedge funds we track were bullish in this stock, a change of 33% from the previous quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes significantly.

When using filings from the hedgies we track, PAR Capital Management, managed by Paul Reeder and Edward Shapiro, holds the largest position in Spirit Airlines Incorporated (NASDAQ:SAVE). PAR Capital Management has a $61.5 million position in the stock, comprising 1.7% of its 13F portfolio. Coming in second is D E Shaw, managed by D. E. Shaw, which held a $27.6 million position; 0.1% of its 13F portfolio is allocated to the company. Some other hedge funds with similar optimism include Robert B. Gillam’s McKinley Capital Management, Joel Greenblatt’s Gotham Asset Management and John Overdeck and David Siegel’s Two Sigma Advisors.

Now, certain money managers have been driving this bullishness. PAR Capital Management, managed by Paul ReederáandáEdward Shapiro, created the biggest position in Spirit Airlines Incorporated (NASDAQ:SAVE). PAR Capital Management had 61.5 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also made a $27.6 million investment in the stock during the quarter. The following funds were also among the new SAVE investors: Robert B. Gillam’s McKinley Capital Management, Joel Greenblatt’s Gotham Asset Management, and John Overdeck and David Siegel’s Two Sigma Advisors.

How are insiders trading Spirit Airlines Incorporated (NASDAQ:SAVE)?

Bullish insider trading is most useful when the primary stock in question has seen transactions within the past six months. Over the latest half-year time frame, Spirit Airlines Incorporated (NASDAQ:SAVE) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Using the results shown by our studies, average investors must always keep one eye on hedge fund and insider trading activity, and Spirit Airlines Incorporated (NASDAQ:SAVE) applies perfectly to this mantra.

Discover how hedge fund piggybacking can benefit you

Recommended Reading:

Southwest Airlines Co. (LUV), The Boeing Company (BA): Spirit Airlines Incorporated (SAVE) Shares Soaring This Year

Spirit Airlines Incorporated (SAVE), Southwest Airlines Co. (LUV): Should You Stay While Chairman Leaves This Airline

Spirit Airlines Incorporated (SAVE)’s Biggest Shareholder Is Selling

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!