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Is American Airlines Group Inc (AAL) The Right Pick For Your Portfolio?

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We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article we look at what those investors think of American Airlines Group Inc (NASDAQ:AAL).

Is American Airlines Group Inc (NASDAQ:AAL) the right pick for your portfolio? The best stock pickers are getting less optimistic. The number of bullish hedge fund bets retreated by 6 lately. AAL was in 50 hedge funds’ portfolios at the end of September. There were 56 hedge funds in our database with AAL holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Rogers Communications Inc. (USA) (NYSE:RCI), Williams Companies, Inc. (NYSE:WMB), and Telecom Italia S.p.A. (ADR) (NYSE:TI) to gather more data points.

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At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.

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With all of this in mind, let’s view the key action encompassing American Airlines Group Inc (NASDAQ:AAL).

How are hedge funds trading American Airlines Group Inc (NASDAQ:AAL)?

Heading into the fourth quarter of 2016, a total of 50 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 11% down from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).

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According to Insider Monkey’s hedge fund database, Berkshire Hathaway, led by Warren Buffett, holds the most valuable position in American Airlines Group Inc (NASDAQ:AAL). Berkshire Hathaway has a $797 million position in the stock. On Berkshire Hathaway’s heels is Ross Margolies of Stelliam Investment Management, with a $204.2 million position; the fund has 6.8% of its 13F portfolio invested in the stock. Remaining professional money managers that hold long positions comprise James Dondero’s Highland Capital Management, and Stephen C. Freidheim’s Cyrus Capital Partners. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.

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