5 Most Popular Transportation Stocks Among Hedge Funds ~ Delta Air Lines Inc. (DAL), American Airlines Group Inc. (AAL), FedEx Corporation (FDX)

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The number of hedge funds holding equity stakes in another airline holding company, United Continental Holdings Inc. (NYSE:UAL), remained somewhat the same, decreasing to 78 from 79 during the latest reporting quarter. However, the overall value of the investments in this company increased by slightly more than 5%, reaching a figure of $3.92 billion compared to $3.73 billion registered at the end of 2014. United Continental Holdings Inc. (NYSE:UAL)’s stock has decreased by nearly 16% during the last trading week as the company has seen numerous negative revisions throughout the past few weeks, which might represent a great buying opportunity for bottom-fishers. As for now, it would make more sense to keep an eye on this company and see whether any signs of a turnaround appear along the way. Among the hedge funds that own sizable stakes in United Continental Holdings Inc. (NYSE:UAL) include Brad Gerstner’s Altimeter Capital Management and Thomas E. Claugus’ GMT Capital.

Another shining star in the transportation sector is Union Pacific Corporation (NYSE:UNP). During the first quarter, the number of hedge funds that hold a long position in this company increased to 69 from 61, which amounts to an increase of more than 13%. Moreover, the value of the total holdings in the railroad operator increased to $2.33 billion from $1.99 billion. In spite of the fact the stock of Union Pacific Corporation (NYSE:UNP) has been on a downtrend throughout the last few months as the company’s coal shipments plummeted by as much as 25% in the recent quarter, it seems that investors are focusing on the medium- and long-term potential of the railway company. Charles Paquelet’s Skylands Capital and Jason Adler’s Alphabet Management are some of the funds that remain bullish on Union Pacific Corporation (NYSE:UNP), as their equity stakes increased during the first quarter.

FedEx Corporation (NYSE:FDX) concludes our list of the five most popular transportation stocks among hedge funds. No changes were reported in the number of hedge funds that own stakes in the American global courier delivery services company during the latest 13F filings, the number remaining at 39. However, the value of the total holdings decreased by slightly more than 1%, declining to $3.39 billion from $3.43 billion. FedEx’s stock has risen almost 1% since the beginning of the year and there is more room to run as the company announced a huge deal to sponsor the prestigious UEFA Europa League. The three-season deal with UEFA discloses FedEx’s plans of expanding its operations in Europe, from which the company might benefit substantially from in the future. Some of the largest equity holders in FedEx include Mason Hawkins’ Southeastern Asset Management and Edgar Wachenheim’s Greenhaven Associates.

Disclosure: None

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