Universal Travel Group (fka UTRA)

[hudsonate]

UTA's new 5% insitutional investor is not your average hedge fund.

PAR Capital is UTA's top institutional owner based on their new purchase of 5% stake or 990,000 shares now valued at $6,128,100.

http://www.nasdaq.com/asp/holdings.asp?symbol=PCLN&symbol=UTA&symbol=GU&selected=UTA&FormType=Institutional

PAR's investment in UTA is noteworthy because PAR is a $2.18 Billion value fund that specializes in the travel industry. They were founded in 1990 by two former airline analysts, Paul Reeder & Edward Shapiro, who previously worked for Loomis Sayles & Co. and Wellington Management.

They are known for taking a longer term, value-oriented view toward their investments as evidenced by their multi-year US Airways position (making them at one time the largest shareholder) bought for $19.53 and sold for $57.80 in 2007 for a 3-bagger.

PAR's top 5 holdings account for nearly half of their $2 Billion investments:

Priceline: $292M
United Airlines: $197M
Southwest Airlines: $177M
Orbitz: $155M
Expedia: $129M

http://google.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHTML1?ID=7558634&SessionID=BvvIH6ns4DgOJA7

PAR Capital are experts in this space and have a incredible track record. They tend to buy large positions at value prices and hold for multiyear, multibaggers. I suspect they invested in UTA at end of Sept during the big drop and will hold for a gain of a multiple of their purchase price.

What is very significant to me is not only the large investment in UTA, but the fact that PAR has NOT invested in any other China travel plays. UTA appears to be their vehicle to tap into the growing China travel sector. It is also worth noting again that PCLN is PAR's top holding which we know is already a UTA partner in China too via Agoda.

When you add PAR as a 5% long term holder with Valente's long term 10% stake, that locks up 3,031,000 shares of float in strong hands.