Is Delta Air Lines, Inc. (DAL) Going to Burn These Hedge Funds?

Page 1 of 2

Delta Air Lines, Inc. (NYSE:DAL) was in 68 hedge funds’ portfolio at the end of March. DAL has experienced an increase in enthusiasm from smart money lately. There were 62 hedge funds in our database with DAL holdings at the end of the previous quarter.

Delta Air Lines, Inc. (NYSE:DAL)

According to most traders, hedge funds are perceived as unimportant, old investment tools of the past. While there are greater than 8000 funds with their doors open at present, we choose to focus on the masters of this club, about 450 funds. It is widely believed that this group oversees the majority of all hedge funds’ total asset base, and by paying attention to their highest performing equity investments, we have unearthed a few investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy outstripped 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 23.3 percentage points in 8 months (check out a sample of our picks).

Equally as key, optimistic insider trading activity is a second way to parse down the stock market universe. There are lots of incentives for an executive to drop shares of his or her company, but just one, very simple reason why they would buy. Many empirical studies have demonstrated the useful potential of this strategy if you know what to do (learn more here).

With all of this in mind, it’s important to take a glance at the latest action regarding Delta Air Lines, Inc. (NYSE:DAL).

Hedge fund activity in Delta Air Lines, Inc. (NYSE:DAL)

At the end of the first quarter, a total of 68 of the hedge funds we track were long in this stock, a change of 10% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their stakes meaningfully.

According to our comprehensive database, Lansdowne Partners, managed by Paul Ruddock and Steve Heinz, holds the most valuable position in Delta Air Lines, Inc. (NYSE:DAL). Lansdowne Partners has a $576.9 million position in the stock, comprising 7.9% of its 13F portfolio. The second largest stake is held by Wayzata Investment Partners, managed by Patrick Halloran, which held a $565.4 million position; the fund has 62.1% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include Crispin Odey’s Odey Asset Management Group, Paul Reeder and Edward Shapiro’s PAR Capital Management and Thomas E. Claugus’s GMT Capital.

As industrywide interest jumped, key money managers were breaking ground themselves. Odey Asset Management Group, managed by Crispin Odey, established the most outsized position in Delta Air Lines, Inc. (NYSE:DAL). Odey Asset Management Group had 223.6 million invested in the company at the end of the quarter. John Armitage’s Egerton Capital Limited also initiated a $60.1 million position during the quarter. The other funds with new positions in the stock are Sean Cullinan’s Point State Capital, Bruce J. Richards and Louis Hanover’s Marathon Asset Management, and Jean-Marie Eveillard’s First Eagle Investment Management.

What do corporate executives and insiders think about Delta Air Lines, Inc. (NYSE:DAL)?

Bullish insider trading is best served when the company in question has experienced transactions within the past six months. Over the last 180-day time frame, Delta Air Lines, Inc. (NYSE:DAL) has seen zero unique insiders buying, and 5 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Delta Air Lines, Inc. (NYSE:DAL). These stocks are Spirit Airlines Incorporated (NASDAQ:SAVE), US Airways Group, Inc. (NYSE:LCC), China Eastern Airlines Corp. Ltd. (ADR) (NYSE:CEA), China Southern Airlines Co Ltd (ADR) (NYSE:ZNH), and United Continental Holdings Inc (NYSE:UAL). All of these stocks are in the major airlines industry and their market caps match DAL’s market cap.

Page 1 of 2
Comments
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

The 9 Most Dangerous Countries for Tourists to Visit

Reign of Terror: The 10 Most Ruthless Politicians in History

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

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!