American Airlines (AAL): Are Hedge Funds Right About This Stock?

Due to the fact that American Airlines Group Inc (NASDAQ:AAL) has experienced a decline in interest from the aggregate hedge fund industry, it’s easy to see that there lies a certain “tier” of fund managers that slashed their positions entirely in the first quarter. Intriguingly, James Dinan’s York Capital Management said goodbye to the largest investment of all the hedgies monitored by Insider Monkey, comprising about $94.6 million in stock, and Zac Hirzel’s Hirzel Capital Management was right behind this move, as the fund dropped about $71.5 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 15 funds between January and March.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as American Airlines Group Inc (NASDAQ:AAL) but similarly valued. We will take a look at Health Care REIT, Inc. (NYSE:HCN), Dollar General Corp. (NYSE:DG), Deere & Company (NYSE:DE), and Tyson Foods, Inc. (NYSE:TSN). This group of stocks’ market values match AAL’s market value.

As you can see these stocks had an average of 36 hedge funds with bullish positions and the average amount invested in these stocks was $1.82 billion. That figure was $1.50 billion in AAL’s case. Dollar General Corp. (NYSE:DG) is the most popular stock in this table. On the other hand Health Care REIT, Inc. (NYSE:HCN) is the least popular one with only 21 bullish hedge fund positions. Compared to these stocks American Airlines Group Inc (NASDAQ:AAL) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: none