Hedge Funds’ Big September Winners As Monthly Winning Streak Rises

#3 Delta Air Lines, Inc. (NYSE:DAL)

– Number of Hedge Fund Holders (as of June 30): 94
– Total Value of Hedge Fund Holdings (as of June 30): $4.66 billion
– Hedge Fund Holdings as Percent of Float (as of June 30): 16.60%

Although crude prices have surged due to OPEC’s tentative decision to cut production to 32.5-33 million barrels per day, down from the current 33.4 million barrels per day, Delta Air Lines, Inc. (NYSE:DAL) have shown remarkable strength. Shares of the airline, whose stock has historically been negatively affected by higher crude prices, rallied 7.1% in September versus the United States Oil Fund LP’s 5.5% advance during the same time frame. One big reason for the solid performance is Delta’s cheap valuation with a forward P/E of 6.97. Expectations for Delta have also risen as various industry indicators have shown strong demand. Delta’s CEO Ed Bastian recently said, that a three day period in July ‘set all-time records in terms of volume of traffic and volume of passenger flows’ and that the company ‘had the strongest summer in [its] history’.

#2 Apple Inc. (NASDAQ:AAPL)

– Number of Hedge Fund Holders (as of June 30): 116
– Total Value of Hedge Fund Holdings (as of June 30): $10.68 billion
– Hedge Fund Holdings as Percent of Float (as of June 30): 2.00%

Apple Inc. (NASDAQ:AAPL)’s equity was a godsend to many hedge funds as shares of the tech company gained 6.5% in September. Although the performance of Apple’s stock hasn’t historically been lights-out around product launches since the iPhone and iPhone Plus’ early days, this September was an exception. Demand for the iPhone 7 and 7 plus has been stronger-than-expected and sentiment around the tech company has improved substantially. With 2017 approaching, some traders are also hoping that the government might allow companies to repatriate their overseas profits at more favorable tax rates. The repatriation might lead to more buybacks, which is generally a good thing for shareholders.

#1 Amazon.com, Inc. (NASDAQ:AMZN)

– Number of Hedge Fund Holders (as of June 30): 145
– Total Value of Hedge Fund Holdings (as of June 30): $19.82 billion
– Hedge Fund Holdings as Percent of Float (as of June 30): 5.90%

Sometimes riding secular trends can be more profitable than buying shares of solidly-profitable companies. Shares of Amazon.com, Inc. (NASDAQ:AMZN), which isn’t exactly rolling in money given its P/E of 209, have surged by 8.8% last month as long-term investors buy the company for its dominance in the cloud market and in the e-commerce space. In addition, Amazon.com’s other initiatives, such as those involving logistics and artificial intelligence, could also pay off in the long run. The smart money certainly thinks so. According to our data, 145 top funds owned shares of Amazon.com, Inc. (NASDAQ:AMZN) at the end of the second quarter, up by 12 from the previous quarter.

Disclosure: none