Hedge Funds’ Favorite Freight and Logistics Stocks

#3. Swift Transportation Co (NYSE:SWFT)

– Investors with long positions (as of March 31): 32

– Aggregate value of investors’ holdings (as of March 31): $404.26 Million

Although Swift Transportation Co (NYSE:SWFT)’s stock has fallen over 16% so far in the second quarter, it is still the best performing stock among the ones covered in this list when it comes to year-to-date gains. The 35% gain made by the stock during the first quarter has ensured that it is trading up 15% year-to-date, despite the recent decline it has seen since the company came out with its first quarter numbers. While analysts had projected Swift Transportation Co (NYSE:SWFT) to report EPS of $0.21 on revenue of $1.01 billion for the quarter, it declared EPS of $0.25 on revenue of $967.80 million. During the first quarter, the number of hedge funds we cover that held a stake in Swift Transportation Co climbed up by seven and the aggregate value of their holdings in it swelled by over 10%. Billionaire Israel Englander‘s Millennium Management cut its stake in the company by more than half to 1.73 million shares during that period.

#2. United Parcel Service, Inc. (NYSE:UPS)

– Investors with long positions (as of March 31): 35

– Aggregate value of investors’ holdings (as of March 31): $1.77 Billion

Amid a 10% rise in United Parcel Service, Inc. (NYSE:UPS)’s stock during the first quarter, its ownership among hedge funds covered by us came down by one and the aggregate value of their holdings in it fell by $368 million. The 35 hedge funds that owned a stake in the company accounted for 1.90% of its float at the end of March. Funds that boosted their holdings in United Parcel Service, Inc. (NYSE:UPS) significantly during that period included billionaire Ken Griffin‘s Citadel Investment Group, which increased its stake eightfold and, at the end of the quarter, owned 282,081 shares of the company. Most of the analysts who track the logistics behemoth are currently bullish on it despite some of the short-term headwinds the company faces. The stock sports an average rating of ‘Overweight’ and an average price target of $108.71 from 27 analysts who cover it.

#1. FedEx Corporation (NYSE:FDX)

– Investors with long positions (as of March 31): 45

– Aggregate value of investors’ holdings (as of March 31): $3.44 Billion

The number of hedge funds covered by us that owned a stake in FedEx Corporation (NYSE:FDX) inched down by two during the first quarter, however, the aggregate value of their holdings in the company saw a modest rise of 4% during the same period. Billionaire David E. Shaw‘s firm, D.E. Shaw, was among the hedge funds that sold a large part of their holdings in the company during the first quarter; it cut the stake by 71% to 263,663 shares. On May 25, FedEx Corporation (NYSE:FDX) announced that it had completed the acquisition of TNT Express, which was announced last year, and will now focus on integrating it. Also last month, Barclays analyst Brandon R. Oglenski released a note to his clients, in which he upgraded the stock ‘Overweight’ from ‘Equal-Weight’ and raised his price target to $205 from $175. In his note, Mr. Oglenski explained the upgrade by saying that they “think the combination of solid package market dynamics, a management team more focused on margins over growth and a relatively ‘cheap’ valuation should support meaningful appreciation for long-term investors”.

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