Hill City Capital LP Invests Heavily in Boeing Amid Defense Challenges

Hill City Capital LP purchased a new position in The Boeing Company (NYSE:BA) during the second quarter, valued at approximately $134.55 million. According to its most recent 13F filing with the SEC, Hill City bought 621,583 shares of the aircraft producer's stock.

Boeing comprises 3.4% of Hill City Capital LP's holdings, making it the fund's eighth-largest holding. At the end of the reporting period, Boeing was approximately 0.08% of Hill City Capital LP's portfolio.

The investment comes as Boeing navigates challenges in its defense business, including a proposed four-year contract with the Society of Professional Engineering Employees in Aerospace (SPEEA). The union represents roughly 17,000 engineers and technical workers, and voting on the contract ended on Friday afternoon. A rejection could lead to a strike, potentially impacting production, certification, and delivery schedules.

Despite these challenges, Boeing has made progress in increasing commercial deliveries and efforts to boost 737 production. However, labor uncertainty remains a concern for investors.