NEW YORK: Bargain-hunting investors are eyeing the shares of airlines, hotels, cruise lines and other companies that have been among the worst-hit by the coronavirus outbreak.
Noah Hamman, chief executive of Advisorshares, an investment firm that focuses on actively-managed exchange-traded funds, is adding to positions in airlines that focus on regional and domestic travel, such as Hawaiian Holdings Inc and SkyWest Inc , a bet that these carriers have better prospects of surviving a travel slowdown because they are more often used for regional and domestic trips.
Investors in the coming week will be looking for signs of how much the virus' spread has accelerated in the United States and other regions. Sectors hard hit by the outbreak are likely to join a broader market selloff if it appears the outbreak is spreading faster than expected. “If you want to be able to travel, you have to use these carriers because there are so few of them," he said.