Alaska Air Group, Inc. (ALK): Among Billionaire David Harding's Stock Picks with Huge Upside Potential

We recently published a list of Billionaire David Harding’s 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Alaska Air Group, Inc. (NYSE:ALK) stands against other billionaire David Harding’s stock picks with huge upside potential.

David Harding is a British hedge fund manager and physicist by training, studied natural sciences at St. Catharine’s College, University of Cambridge, with a focus on theoretical physics. His education in empirical science would go on to inform his pioneering approach to financial markets. Harding began his career in finance in the mid-1980s, working at Sabre Fund Management. At Sabre, he was instrumental in developing early systematic trading models that used statistical analysis to identify patterns in market behavior. This experience laid the foundation for his future endeavors in quantitative finance.

In 1997, he established Winton Capital Management (now Winton Group), with the goal of applying scientific research and data-driven techniques to financial markets. Under Harding’s leadership, Winton grew rapidly, at one point managing over $28 billion in assets. The firm became one of the most prominent names in the quantitative hedge fund space, known for its commitment to rigorous data analysis and skepticism toward discretionary trading. Winton’s strategies typically involve global futures and equities, relying on vast historical datasets and algorithmic models rather than human intuition.

In recent years, Harding’s firm has experienced a resurgence. After a significant downturn, Winton rebounded with a 47% return in 2022, marking its best performance since the financial crisis. As of the end of last year, the firm’s assets under management had risen to $12.3 billion, reflecting a strong recovery. ​Winton remains committed to its systematic, research-driven approach. The firm’s ability to adapt to changing market conditions and its focus on long-term trends suggest potential for sustained performance in the future.

At the LSEG Lipper Fund Awards 2024, Winton Capital Management was honored with the “Best Fund over 3 Years” award in the Managed Futures category. This accolade recognizes the firm’s outstanding risk-adjusted performance over a three-year period. The Awards are based on the Lipper Leader rating for Consistent Return, which evaluates funds using a risk-adjusted performance measure over multiple non-overlapping periods. This methodology ensures that the winners have provided superior consistency and risk-adjusted returns compared to similar funds. This recognition underscores Winton’s commitment to delivering high-quality, systematic investment strategies that prioritize consistent performance for investors.

Our Methodology

For this list, we picked stocks from Winston Group’s 13F portfolio as of the end of the fourth quarter of 2024. We listed them in the ascending order of analysts’ average upside potential. These equities are also popular among other hedge funds.

Note: All data was recorded on April 29, 2025.

At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Alaska Air Group, Inc. (NYSE:ALK)

Winton Group’s stake: $8,348,800

Upside Potential: 44.66%

Number of Hedge Fund Holders: 45

Alaska Air Group, Inc. (NYSE:ALK), founded in 1985, operates Alaska Airlines, Hawaiian Airlines, and Horizon Air. Alaska Airlines, established in 1932, serves North America and international destinations. Hawaiian Airlines, founded in 1929, operates between Hawaii and various global locations. Horizon Air, acquired in 1986, provides regional flights for Alaska. In 2016, Air Group acquired Virgin America, merging it with Alaska in 2018. In 2024, Alaska acquired Hawaiian Holdings, integrating operations, loyalty programs, and pursuing joint collective bargaining for employees. The company prioritizes safety and sustainable growth.

Alaska Air Group, Inc. (NYSE:ALK) reported a Q1 2025 net loss of $166 million, with an adjusted loss of $95 million. Despite this, the company remains confident in its long-term strategy, Alaska Accelerate. Key successes include strong loyalty growth, particularly through its Hawaiian Airlines integration, and a robust performance in premium revenues. The company’s diversified revenue streams, including cargo, are contributing to its resilience. Alaska’s market position is strengthened by a low-cost structure and high loyalty. Despite challenges like macroeconomic factors and fluctuating demand, Alaska maintains its commitment to its $1 billion share buyback program. The company is optimistic about future performance, aiming for $10 earnings per share by 2027. The second quarter outlook reflects slight growth but cautious expectations due to ongoing uncertainty in the demand environment.

Overall, ALK ranks 4th on our list of billionaire David Harding’s stock picks with huge upside potential. While we acknowledge the growth potential of ALK, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ALK but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.