Travel-Tilting Hedge Funds Are Investing in Airlines and Online Travel Agencies
Photo Credit: An interior of a United plane. Both Par Capital Management and Altimeter Capital Management are major investors in United Airlines. United Airlines / United Airlines
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.
Stephen Kaufer, CEO of TripAdvisor, is speaking at Skift Global Forum 2017. Get Tickets Now
Meanwhile, the smaller Altimet
