What Hedge Funds Think About Southwest Airlines Co. (LUV)

Page 1 of 2

At the moment, there are plenty of methods investors can use to monitor Mr. Market. A pair of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can beat their index-focused peers by a very impressive amount (see just how much).

Equally as useful, positive insider trading sentiment is another way to look at the stock market universe. There are plenty of stimuli for an executive to drop shares of his or her company, but only one, very simple reason why they would initiate a purchase. Many academic studies have demonstrated the useful potential of this strategy if investors understand what to do (learn more here).

Keeping this in mind, let’s study the newest info for Southwest Airlines Co. (NYSE:LUV).

How are hedge funds trading Southwest Airlines Co. (NYSE:LUV)?

In preparation for the third quarter, a total of 29 of the hedge funds we track were long in this stock, a change of -9% from the previous quarter. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were increasing their holdings meaningfully.

Southwest Airlines Co. (LUV)When using filings from the hedgies we track, Greenhaven Associates, managed by Edgar Wachenheim, holds the biggest position in Southwest Airlines Co. (NYSE:LUV). Greenhaven Associates has a $141.9 million position in the stock, comprising 3.8% of its 13F portfolio. Coming in second is Ric Dillon of Diamond Hill Capital, with a $99.8 million position; 1.1% of its 13F portfolio is allocated to the company. Some other peers that hold long positions include Louis Navellier’s Navellier & Associates, Cliff Asness’s AQR Capital Management and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Since Southwest Airlines Co. (NYSE:LUV) has faced declining interest from the top-tier hedge fund industry, logic holds that there were a few fund managers that elected to cut their entire stakes heading into Q2. At the top of the heap, Edward A. Mule’s Silver Point Capital said goodbye to the largest investment of the 450+ funds we monitor, comprising an estimated $4 million in stock. Robert Raiff’s fund, Raiff Partners, also cut its stock, about $2.6 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 3 funds heading into Q2.

Insider trading activity in Southwest Airlines Co. (NYSE:LUV)

Insider buying made by high-level executives is at its handiest when the company in focus has seen transactions within the past 180 days. Over the latest 180-day time frame, Southwest Airlines Co. (NYSE:LUV) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll check out the relationship between both of these indicators in other stocks similar to Southwest Airlines Co. (NYSE:LUV). These stocks are JetBlue Airways Corporation (NASDAQ:JBLU), Alaska Air Group, Inc. (NYSE:ALK), Copa Holdings, S.A. (NYSE:CPA), Ryanair Holdings plc (ADR) (NASDAQ:RYAAY), and LATAM Airlines Group SA (ADR) (NYSE:LFL). This group of stocks belong to the regional airlines industry and their market caps match LUV’s market cap.

Page 1 of 2
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 Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!