Were Hedge Funds Right about Their Top 10 Picks in Q3?

Hedge funds were also right to bet on the airline industry and to choose Delta Air Lines, Inc. (NYSE:DAL) as their top pick among airline stocks. In the last round of 13F filings, 114 funds reported long positions in Delta, with an aggregate value of $6.99 billion, representing almost 21% of the company, whose stock advanced by 9.50% in the third quarter. However, year-to-date the stock is down by around 8.8%, below the industry average of  a drop of 7.41%. The stock took another hit yesterday after Delta Air Lines, Inc. (NYSE:DAL) reported passenger traffic figures for September, which showed a 5% annual drop in its passenger unit revenue, slightly better than expected by the company. Delta’s third quarter guidance indicated a unit revenue decline of 4.5%-to-5%. Among the funds we track, Lansdowne Partners is the top shareholder of Delta Air Lines, Inc. (NYSE:DAL), owning 26.55 million shares as of the end of June.