MIAMI – As the pandemic continues hitting International Airlines Group (IAG), hedge fund Mashall Wace has decided to take a 3% share in IAG. The new financial move comes amid a series of decisions taken this week.
In a shuffling move, British Airways (BA) CEO, Alex Cruz was replaced by a Chief Executive Officer of another IAG carrier. As the newly appointed BA CEO, Aer Lingus (EI) Chairman and CEO, Sean Doyle now has a double role at IAG.
Regarding the mentioned actions, IAG, Luis Gallego said that current times are the worst crisis faced by the industry. In fact, former IAG CEO, Willie Walsh delayed his retirement for the same reasons.
As the last share price stood (October 12), IAG went down from 104.00 to 93.80. But during September, it proved profitable positions for hedge fund short sellers. By that time, the group had generated US$218.6m as showed by equity research firm Ortex Analytics’ analysis.
Marshall Wace’s Role during the Crisis
The hedge fund giant Marshall Wace is not a new player in the sector. This year, the company has quite meddled into the global travel and aviation sectors.
On the one hand, Mashall Wace’s actions include placing negative wagers on TUI Airways (BY) and easyJet (U2). On the other hand, the company made bets against Lufthansa (LH) and Air France (AF) in sizeable shorts.
While Marshall Wace already holds a 3% current position in IAG, the UK press is suggesting that the company now also sees value in UK stocks. The latter would be a possibility, taking into consideration that money can be made as share prices drop, reported several media.
Featured photo: IAG’s airline tails (British Airways, Iberia, Aer Lingus, Vueling and Level).