Thursday, 2 October 2014
Last updated 27 min ago
Jun 18 2012 | 1:25pm ET
Appaloosa Management chief David Tepper’s recent airline purchases have taken off.
The distressed investing specialist invested in both US Airways Group (up 135.1% year to date) and Delta Airlines (up 27% YTD) in the first quarter.
Tepper added 7,419,026 US Airways shares in the first quarter at an average of $7.40, according to MSN Money, bringing his total holding of 10,657,243. The stock began rallying in late January, as the company announced it Q4 2011 earnings (a net profit of $21 million) and a possible takeover of the bankrupt American Airlines holding company, AMR.
As for Delta, Tepper bought 6,740,189 shares in Q1 2012 at an average price of $9.80 per share after selling off his stake in Q4 2011. MSN said Tepper took unusual steps to hedge fuel costs in Q2 by buying a refinery, which could save the company up to $300 million annually.
Delta Airlines also began rallying early in 2012, announcing GAAP fourth-quarter 2011 net income of $425 million (compared to $19 million in Q4 2010). Its net income for 2011 was $1.2 billion, excluding special items.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...