In its latest 13F filing with the U.S. Securities and Exchange Commission, Masters Capital Management, managed by Mike Masters, revealed its equity portfolio for the second quarter of 2014. The fund disclosed in the filing that the value of its second-quarter portfolio totaled $2.2 billion, down from the previous quarter value of around $3.0 billion. During the quarter, the fund had focused on technology, energy and finance stocks. Over the quarter, the fund started more than seven new positions, and reduced stakes in more than 10 stocks. American Airlines Group Inc (NASDAQ:AAL), Delta Air Lines, Inc. (NYSE:DAL) and First Solar, Inc. (NASDAQ:FSLR) are represented as the Masters Capital’s top stocks for the quarter. Let’s discuss each of these top stocks.
First one is American Airlines Group Inc (NASDAQ:AAL), in which Masters Capital disclosed holding 1 million shares, with a reported value of around $43 million. The stake remained unchanged over the quarter. American Airlines Group Inc (NASDAQ:AAL) runs American Airlines, Inc., and has a market value of $27.4 billion. York Capital Management, led by James Dinan, reported owning 18.4 million shares of the company.
Second important holding is Delta Air Lines, Inc. (NYSE:DAL), in which Masters Capital reduced its holding by 12% during the quarter, taking its stake to 1.0 million shares, worth $38.7 million. Previously, the fund held 1.13 million shares of the company. Stelliam Investment Management, managed by Ross Margolies, reported holding 3.79 million shares of Delta Air Lines, Inc. (NYSE:DAL).
Recently, Joseph DeNardi, an analyst with Stifel Nicolaus, said that Delta Air Lines, Inc. (NYSE:DAL) is leading the pack of soaring airline stocks. If airline stocks were a gaggle of geese flying in formation through the summer sky, then Delta Air Lines, Inc. (NYSE:DAL) would be their leader, guiding them to their destination, according to DeNardi.
First Solar, Inc. (NASDAQ:FSLR) is represented as the third largest holding, a new position where Masters Capital owns 500,000 shares, with a reported value of $35.5 million. Last month, First Solar, Inc. (NASDAQ:FSLR) reported its financial results for the second quarter of 2014. The company’s net sales were $544 million, compared to $519.8 million in the same quarter of 2013. The company reported a second quarter GAAP earnings per fully diluted share of $0.04, compared to $0.37 in the second quarter last year. In addition, First Solar, Inc. (NASDAQ:FSLR) maintained its full-year 2014 earnings per share guidance of $2.40 to $2.80 and operating cash flow guidance of $300 to $500 million.
First Solar, Inc. (NASDAQ:FSLR) is also a favorite stock of Cliff Asness’ AQR Capital Management, which reveled holding 837,751 shares of the company. Renaissance Technologies, led by Jim Simons, reported owning 685,100 shares of the company.
Masters Capital Management is an Atlanta-based hedge fund that was founded in 1995. The hedge fund has $250 million of assets under management. Masters Capital invest in U.S.-listed equities and options.