After Returning $400 Million to Investors, This is How Seminole Management Tweaked its Portfolio in Q1

#2. AT&T Inc. (NYSE:T)

 – Number of shares held by Seminole Management (as of March 31): 2.10 Million

 – Value of Seminole Management’s holding (as of March 31): $82.41 Million

The New York-based asset manager cut its stake in AT&T Inc. (NYSE:T) by 47% during the March quarter, to 2.10 million shares valued at $82.41 million, with the position constituting 6.6% of Seminole’s equity portfolio on March 31. The shares of the telecommunications giant have enjoyed a great run this year and are trading near their 52-week high of $39.72. AT&T is moving on from its 15-year hosting deal with Yahoo! Inc. (NASDAQ:YHOO) after awarding a contract to host its Web and mobile portals to telecom company Synacor Inc (NASDAQ:SYNC). Various news outlets noted that the AT&T/Yahoo partnership had generated $100 million in annual revenue for embattled Yahoo! over the course of the 15-year partnership. Leighton Welch’s Welch Capital Partners owns 379,491 shares of AT&T Inc. (NYSE:T) as of March 31.

#1. Delta Air Lines Inc. (NYSE:DAL)

 – Number of shares held by Seminole Management (as of March 31): 1.70 Million

 – Value of Seminole Management’s holding (as of March 31): $82.85 Million

Delta Air Lines Inc. (NYSE:DAL) was the top equity holding in Seminole Management’s portfolio at the end of the March quarter, accounting for nearly 6.7% of its worth. The New York-based investment firm also slashed its stake in the airline during the first quarter, by 43% to 1.70 million shares. The second-largest U.S carrier may seek to reduce its capacity in the foreseeable future, as rising fuel prices and weak economies worldwide have made some routes unprofitable. The company has been struggling to reverse a negative trend of five consecutive quarters of declining passenger revenue per available seat mile (PRASM), so capacity cuts may assist Delta in solving the problem. Delta’s PRASM indicator for the March quarter dropped by 4.6% year-over-year, more than the 2.5%-to-4.5% decline previously anticipated by management. Delta anticipates passenger unit revenue for the June quarter to decline by the same 2.5%-to-4.5% that it had previously anticipated for the first quarter. Shares of the company are down by 16% since the beginning of 2016. Iridian Asset Management, founded by David Cohen and Harold Levy, holds 11.62 million shares of Delta Air Lines Inc. (NYSE:DAL) as of March 31.

Disclosure: None