At Holdings Channel , we have reviewed the latest batch of the 52 most recent 13F filings for the 03/31/2016 reporting period, and noticed that Southwest Airlines Co (Symbol: LUV) was held by 17 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen .
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in LUV positions, for this latest batch of 13F filers:
Change In Share Count
Change In Market Value($ in 1000's)
Odey Asset Management Group Ltd
Tudor Investment Corp ET AL
Horizon Investment Services LLC
ETRADE Capital Management LLC
Maverick Capital Ltd.
Holt Capital Advisors L.L.C. dba Holt Capital Partners L.P.
Perritt Capital Management Inc.
Leuthold Group LLC
J. Goldman & Co LP
Fred Alger Management Inc.
Stifel Financial Corp
Atlanta Capital Group
Hanson McClain Inc.
BNP Paribas Investment Partners S.A.
Nomura Holdings Inc.
In terms of shares owned, we count 6 of the above funds having increased existing LUV positions from 12/31/2015 to 03/31/2016, with 6 having decreased their positions and 2 new positions. Worth noting is that Discovery Capital Management LLC CT , included in this recent batch of 13F filers, exited LUV common stock as of 03/31/2016.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the LUV share count in the aggregate among all of the funds which held LUV at the 03/31/2016 reporting period (out of the 3,049 we looked at in total). We then compared that number to the sum total of LUV shares those same funds held back at the 12/31/2015 period, to see how the aggregate share count held by hedge funds has moved for LUV. We found that between these two periods, funds increased their holdings by 9,978,867 shares in the aggregate, from 354,498,809 up to 364,477,676 for a share count increase of approximately 2.81%. The overall top three funds holding LUV on 03/31/2016 were:
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Southwest Airlines Co (Symbol: LUV).