Hedge funds bailed on Boeing, airlines and these other stocks during the market rout

Published Thu, May 21 202011:37 AM EDT

(This story is for CNBC Pro subscribers only.) Amid the brutal coronavirus sell-off, hedge funds fled some of the most-impacted industries, with Boeing and airline stocks being the most-exited positions during the first quarter. Dumping these stocks helped hedge funds avoid big losses. The 10 stocks with hedge fund ownership falling the most during the first quarter lagged the S & P 500 by nearly 20% on average in 2020, according to an analysis from RBC Capital Markets based on the latest quarterly regulatory filings from 342 hedge funds. Here's what else hedge funds bailed on during the first-quarter rout. A total of 24 hedge funds got out of their Boeing positions during the first quarter, making the aircraft-maker the least sought-after name. Boeing got hammered by a double whammy this year — the coronavirus crisis and the year-long grounding of its best-selling plane, the 737 Max. Its shares have plunged more than 50% this year. Meanwhile, Delta Air Lines and United Airlines were also the most-exited bets in the first three months of 2020, which were down 60% and 70% respectively this year. Demand for air travel has plunged since March as the virus and precautions like shelter-in-place orders keep potential passengers home. Hedge funds' stance on airline represents another sign that investors believe the beaten-down industry may have lasting problems due to the pandemic. Warren Buffett's Berkshire Hathaway also bailed on the industry, selling its entire equity position worth north of $4 billion in December. The legendary investor said he believes the airline sector may have changed fundamentally due to the economic fallout. The hedge fund industry was less pessimistic about some of other hard-hit names , betting on a rebound as the economy gradually reopens. Darden Restaurants was among the top 10 stocks hedge funds picked up during the first quarter. General Motors was also among hedge funds' most-hated stocks. The automaker shut down its production for two months amid the coronavirus outbreak and restarted its plants for the first time this week. Its stock is still down 30% this year after rebounding 20% in the past month. Hedge funds also sold Marathon Petroleum as the pandemic significantly impacted demand for the transportation fuels that the oil refiner produces. Caterpillar was also one of the least popular stocks among hedge funds. The industrial giant experienced a sales drop of 21% in the first quarter amid disrupted demand in the construction and mining sectors.

Many of the seats aboard a United Airlines flight sit empty on May 11, 2020 in flight to Houston, Texas from San Francisco.

Justin Sullivan | Getty Images

(This story is for CNBC Pro subscribers only.)

Amid the brutal coronavirus sell-off, hedge funds fled some of the most-impacted industries, with Boeing and airline stocks being the most-exited positions during the first quarter.

Dumping these stocks helped hedge funds avoid big losses. The 10 stocks with hedge fund ownership falling the most during the first quarter lagged the S&P 500 by nearly 20% on average in 2020, according to an analysis from RBC Capital Markets based on the latest quarterly regulatory filings from 342 hedge funds.

Here's what else hedge funds bailed on during the first-quarter rout.