Delta Air Lines, Inc. (NYSE:DAL) investors should be aware of a decrease in enthusiasm from smart money in recent months. DAL was in 94 hedge funds’ portfolio at the end of the third quarter of 2014. There were 99 hedge funds in our database with DAL holdings at the end of the previous quarter. Hedgies like John Armitage, Rob Citrone, and Steven Tananbaum sold out of the stock recently. On the bright side, Delta Air Lines, Inc. (NYSE:DAL) are still very popular among hedge funds. Billionaire Andread Halvorsen and Robert B. Gillam initiated new positions.
In the financial world there are a lot of metrics shareholders put to use to assess their holdings. Two of the most useful metrics are hedge fund and insider trading sentiment. Experts at Insider Monkey, a website specializing in hedge funds, have shown that, historically, those who follow the top picks of the elite fund managers can outpace the market by a healthy margin (see the details here).
So, let’s take a look at the recent action encompassing Delta Air Lines, Inc. (NYSE:DAL).
What does the smart money think about Delta Air Lines, Inc. (NYSE:DAL)?
At Q3’s end, a total of 94 of the hedge funds tracked by Insider Monkey were long in this stock, a change of -5% from the second quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their stakes significantly.
According to hedge fund experts at Insider Monkey, Iridian Asset Management, managed by David Cohen and Harold Levy, holds the largest position in Delta Air Lines, Inc. (NYSE:DAL). Iridian Asset Management has a $290.4 million position in the stock, comprising 3% of its 13F portfolio. On Iridian Asset Management’s heels is PAR Capital Management, managed by Paul Reeder and Edward Shapiro, which held a $276.2 million position; 7.4% of its 13F portfolio is allocated to the stock. Some other hedge funds that hold long positions encompass David Tepper’s Appaloosa Management LP, Thomas E. Claugus’s GMT Capital and Crispin Odey’s Odey Asset Management Group.
Judging by the fact that Delta Air Lines, Inc. (NYSE:DAL) has faced bearish sentiment from the smart money, it’s safe to say that there exists a select few funds that slashed their full holdings at the end of the third quarter. At the top of the heap, John Armitage’s Egerton Capital Limited dumped the largest stake of all the hedgies monitored by Insider Monkey, totaling an estimated $92.5 million in stock, and Rob Citrone of Discovery Capital Management was right behind this move, as the fund dropped about $78.5 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest fell by 5 funds at the end of the third quarter.