Should You Buy Shares of American Airlines Group Inc (AAL), Valeant Pharmaceuticals Intl Inc (VRX) & Two Other Stocks?

Pomelo Capital had acquired 175,000 shares of United Continental Holdings Inc (NYSE:UAL) in the second quarter, and held 250,000 shares worth $10.26 million at the end of June. The stock returned 27.9% during the third quarter and Pomelo cut its exposure to the company by 47% to 131,000 shares worth $6.87 million during the same period. At the end of June, 57 funds from our database were bullish on this stock, a decline of 7% over the quarter. More specifically, PAR Capital Management was the largest shareholder of United Continental Holdings Inc (NYSE:UAL), with a stake worth $668.7 million reported as of the end of June. Trailing PAR Capital Management was Altimeter Capital Management, which amassed a stake valued at $472.3 million. AQR Capital Management, GMT Capital, and Citadel Investment Group also held valuable positions in the company.

On the other hand, Pomelo Capital acquired over 1.27 million shares of Seadrill Ltd (NYSE:SDRL) in the second quarter and further increased the stake by 113,858 shares in the third quarter, holding around 1.50 million shares valued at $3.55 million at the end of September. Meanwhile, the stock slid by 26.9% during the third quarter. During the second quarter, the number of funds from our database long Seadrill went down by 23% to 17. Robert Henry Lynch’s Aristeia Capital had the most valuable position in Seadrill Ltd (NYSE:SDRL), worth close to $17.1 million at the end of June. On Aristeia Capital’s heels was Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, with a $16 million position. Other members of the smart money that held long positions contained Joel Greenblatt’s Gotham Asset Management, Philippe Laffont’s Coatue Management and Himanshu H. Shah’s Shah Capital Management.

Disclosure: none