Phillips 66 (PSX), Citigroup Inc (C), Delta Air Lines, Inc. (DAL): Dan Loeb’s New Picks

Delta Air Lines, Inc. (NYSE:DAL) is the third candidate on the list of stocks catching Loeb’s eye as he gears his portfolio for above-market returns. Third Point initiated a position in the company by purchasing 3.85 million shares valued at $189.38 million. The position forms 1.71% of the fund’s portfolio value. Delta was also one of the favorite picks of billionaires at the end of 2014, with 13 of them invested in the company. Analyzing the data from the hedge funds we track, the aggregate amount that 110 funds invested in Delta Air Lines, Inc. (NYSE:DAL) stood at $7.53 billion at the end of the fourth quarter. This is a considerable increase from the $5.02 billion that 95 funds had invested at the end of the third quarter.

Andreas Halvorsen of Viking Global also envisions a strong performance from Delta Air Lines, Inc. (NYSE:DAL) in 2015, as he increased his stake in the company by 350% during the fourth quarter. He had 8.8 million shares with a market value of $433 million at the end of last year.

Although down nearly 4% year-to-date, mostly in light of winter storms, a rally in oil prices, and disappointing traffic results for January from its rivals, Delta Air Lines, Inc. (NYSE:DAL) is up nearly 43% over the last 52 weeks. It is currently trading at a forward earnings multiple of 8.16.

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