Kevin D. Eng’s Columbus Hill Capital Management has filed its 13F with the SEC for the reporting period of March 31, 2015. After analyzing the equity portfolio of Mr. Eng, we found out that a large percentage of his stock investments are similar to his previous employer David Tepper’s Appaloosa Management L.P. What is more interesting is that Kevin Eng has worked for David Tepper as well as Stan Druckenmiller of Duquesne Capital Management but his portfolio seems to be inspired from Tepper’s stock picks. It is also possible that Eng and Tepper share ideas. Some of the common stock positions held by Columbus Hill Capital and Appaloosa Management include Delta Air Lines, Inc. (NYSE:DAL), United Continental Holdings Inc (NYSE:UAL), Google Inc (NASDAQ:GOOGL), Axiall Corp (NYSE:AXLL), and Bank of America Corp (NYSE:BAC).
Why are we interested in the 13F filings of a select group of hedge funds? We use these filings to come up with attractive investment ideas. We also use these filings to determine the top 15 small-cap stocks held by these elite funds based on 16 years of research that showed their top small-cap picks are much more profitable than both their large-cap stocks and the broader market as a whole. These small-cap stocks beat the S&P 500 Total Return Index by an average of nearly one percentage point per month in our backtests, which were conducted over the period of 1999 to 2012. Moreover, since the beginning of forward testing from August 2012, the strategy worked just as our research predicted, outperforming the market every year and returning 145% over the last 34 months, which is more than 85 percentage points higher than the returns of the S&P 500 ETF (SPY) (see more details).
Columbus Hill Capital Management raised its stake in Delta Air Lines, Inc. (NYSE:DAL) by 316% with 792,230 shares of the airliner valued at $35.62 million. It might be of interest to notice that David Tepper’s Appaloosa Management L.P also upped its stake in the global airline company by 45% with 4.67 million shares valued at $210.03 million. As of now Delta Air Lines, Inc. (NYSE:DAL) is under a continuous dispute with Southwest Airlines Co (NYSE:LUV) for its operations at the Dallas Love Airport and both the companies are ready to file lawsuits against the city in case proper accommodation for their flights is not provided. Delta Air Lines has also attracted investments from Lansdowne Partners.