Hirzel Capital Management LLC has filed an amended Schedule SC 13D form with the SEC, disclosing the selling of 542,846 shares of Hawaiian Holdings Inc. (NASDAQ:HA). The Texas-based hedge fund founded by Zac Hirzel now owns 3.99 million shares, which represent 7.3% of the company’s outstanding common stock according to the filing. Although the fund has decreased its stake by almost 12% since its latest 13F filing, it still remains the largest shareholder from our database in Hawaiian Holdings Inc. (NASDAQ:HA). Hirzel also stands on the company’s board of directors, to which he was appointed in December, 2013.
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Hirzel Capital Management is a hedge fund founded by its current portfolio manager and director, Zac Hirzel, in June 2008. The private investment firm, which is headquartered in Dallas, Texas, employs a fundamental investing approach and invests in both long and short securities. The fund’s latest 13F filing reveals that it holds a diversified portfolio, with large public equity investments in the services, energy, financial and transportation sectors. According to the same filing, the public equity portfolio managed by Zac Hirzel is worth $960.41 million as of March 31, 2015. Some of the largest holdings of this hedge fund include ON Semiconductor Corp. (NASDAQ:ONNN) and California Resources Corporation (NYSE:CRC).
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Hawaiian Holdings Inc. (NASDAQ:HA) is the largest and longest-serving airline in Hawaii, as well as the 8th largest commercial airline in the United States. Hawaiian is well-known as the airline company that has never had a fatal accident in its entire 85-year history. Despite the fact that its stock is down slightly more than 8% year-to-date, it has increased by over 26% during the last three-month period to $23.82 per share. Considering the fact that the U.S. Department of Transportation fined Hawaiian Airlines for $160,000 last week because of the company’s violations on mishandled baggage reimbursements and promotional fare deals from 2013, the performance of the stock can be assessed as being relatively strong. An investigation of Hawaiian Airlines, which is a subsidiary of Hawaiian Holdings Inc. (NASDAQ:HA), reveals that the company reimbursed its customers $30 per day for a maximum of three days for compensations from mishandled baggage, while the law requires a minimum of $3,400. However, the officials at Hawaiian Airlines reacted professionally to this announcement, claiming that the policies have been updated and that the company initiated an employee training program so as to make sure that the policies are respected.
Additionally, the airline company announced the launch of a new in-flight culinary program containing specially-designed menus from five top Hawaiian chefs. This culinary program will provide the Hawaiian Airline’s clients the chance to relish in the delicious and savory cuisine of Hawaii when travelling from Hawaii to the Mainland. Undoubtedly, this is a source of competitive advantage for the airline, and there are minimal chances that other airline companies will be able to replicate this competitive business model.
Let’s take a quick look at Hawaiian Holdings’ financials so as to assess the fundamental strength of the company. During the first quarter, the company reported an adjusted net income, which reflects economic fuel expense and excluding loss on extinguishment of debt, of $24.4 million, marking an increase of $25.6 million year-over-year. Interestingly enough, the company’s board of directors approved a share-repurchase program authorizing up to $100 million in repurchases, which might signal that the company, including its shareholders, consider that the shares are relatively undervalued. Meanwhile, the president and chief executive officer of Hawaiian Airlines, Mark Dunkerley, claimed that the company’s record results during the seasonally-weak first quarter proves the strength of it business.
John Overdeck and David Siegel’s Two Sigma Advisors and Jim Simons’ Renaissance Technologies are the largest shareholders in Hawaiian Holdings Inc. (NASDAQ:HA), owning 560,300 shares and 412,773 shares respectively.
Disclosure: None
