These Two Stocks are in Spotlights Today for Very Different Reasons

Southwest Airlines Co (NYSE:LUV)‘s technical problems started on Sunday morning, as a software glitch unsettled the check-in of passengers that did not have a printed copy of their ticket or a mobile boarding pass. As a result, the staff was forced to use backup systems to go around the problem, which led to hundreds of flights being delayed. Southwest had also warned passengers flying today to print their boarding passes at home and arrive at the airport earlier. Michelle Agnew, a Southwest Airlines spokeswoman, announced in an email earlier today that system failures were fixed and normal service was resumed. Shares have registered a tepid advance, up by 1.7% during the first two hours of trading after a fall in the pre-market trading.

Southwest Airlines Co (NYSE:LUV) has gained some popularity among the hedge funds we track, with 50 investors reporting positions in the company at the end of the second quarter, up from 44 at the end of March. Their combined investment accounted for 7.9% of the carrier’s outstanding stock and was valued at $1.74 billion at the end of June, down by 16% on the quarter. Cliff Asness believes Southwest Airlines has great upside potential, having boosted his holding by 73% throughout the second quarter, with AQR having reported ownership of 9.67 million shares at the end of June. Jim Simons‘ mathematical models seem to suggest the same, as Renaissance Technologies reportedly holds 4.65 million shares, up by 86% from the end of the first quarter.

Disclosure: none.