Travel-Tilting Hedge Funds Are Investing in Airlines and Online Travel Agencies
Skift Take
Follow the money — at your own risk, of course. These two hedge funds are putting their money in airline and online travel agency stocks, often investing in competitors. Rising tides lift all boats, after all.
Where is the supposed smart money investing in travel these days? What's hot and what's not?
Two of the most prominent hedge funds with a big travel focus, Paul Reeder's Par Capital Management and Brad Gerstner's Altimeter Capital Management, are investing heavily in airlines and online travel agencies, and both started or increased their investments in Avis Budget Group in the second quarter. Avis Budget Group had a tough second quarter, however.
Par Capital Management in the second quarter increased its stakes in Avis Budget Group, Delta, El Dorado Resorts, Red Rock Resorts and Trivago while it disposed of its stocks in Xenia Hotels and Isle of Capri Casinos. The hedge fund, which had $8.7 billion in total market value at the end of June, also downsized its holdings in Alaska Airlines, MGM Resorts International, Penn National Gaming, and TripAdvisor.
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Meanwhile, the smaller Altimeter Capital Management increased its stakes in Alaska Airlines, United and Yelp while disposing of its shares in Allegiant Travel, which owns Allegiant Air. Altimeter made new investments in Avis Budget Group and TripAdvisor. Altimeter had a total market value of $2.4 billion at the end of June.
Hedge funds such as these two are required to disclose their holdings in quarterly Securities and Exchange Commission filings; the most recent Altimeter Capital disclosure is linked here, and Par Capital is here. Skift broke out their travel holdings and any changed positions in the charts below. You can quibble with comp
