This Hedge Fund is Bullish on Finance, Tech and Healthcare Heading into Q4

#3 American Airlines Group Inc (NASDAQ:AAL)

Shares held (as of September 30): 90,000
Total Value (as of September 30): $3.5 million
Percent of Portfolio (as of September 30): 1.20%

Given a forward P/E of 7.08, low fuel prices, and big buybacks on the horizon, it’s not surprising that Argentiere Capital initiated a new stake of 90,000 shares in American Airlines Group Inc (NASDAQ:AAL) in the third quarter. Other hedge funds like the airline stock too. Our data show 85 funds (out of the around 730 that we track) owning around 9.2% of American Airline’s float at the end of June. Crude prices will eventually rise for one reason or another, dragging jet fuel price, but until that time comes, American Airlines will be using its cash flow to buy back a lot of stock that will increase its EPS and stock price.

#2 Citigroup Inc (NYSE:C)

Shares held (as of September 30): 91,000
Total Value (as of September 30): $4.52 million
Percent of Portfolio (as of September 30): 1.55%

Given Citigroup Inc (NYSE:C)’s tangible book value is $59 and Citigroup Inc (NYSE:C) stock is trading around $53, Citigroup is the cheapest major money center bank listed on the NYSE. Because Citigroup is the most international of all the major money center banks, its earnings have suffered disproportionately because of the strong dollar. In the long run, however, Citigroup’s international exposure will be a strength as international economies recover. Normalizing interest rates could act as a catalyst to send shares back up to tangible book value or higher. Boykin Curry‘s Eagle Capital Management is another shareholder of Citigroup with 24.37 million shares as of June 30.

#1 JPMorgan Chase & Co. (NYSE:JPM)

Shares held (as of September 30): 131,700
Total Value (as of September 30): $8.03 million
Percent of Portfolio (as of September 30): 2.76%

Argentiere Capital may have trimmed its stake in JPMorgan Chase & Co. (NYSE:JPM) by 20,900 shares in the third quarter, but it still owns 131,700 shares. JPMorgan Chase & Co. (NYSE:JPM) is the best bank money can buy, and it is led by the best CEO in the industry, Jamie Dimon. Under Dimon’s leadership, JPMorgan was profitable during the financial crisis and is even more profitable now. Earnings should rise as interest rates are increased. Aside from Argentiere,  Lansdowne Partners disclosed ownership of 21.16 million shares in its 13F filing for the second quarter.

Disclosure:none