Qantas's largest shareholder, Franklin Resources, has sold down its stake in the airline for the second time in a month, taking advantage of recent share price gains.
The US-based investment fund now owns 14.2 per cent of Qantas, down from more than 15 per cent previously and from 16 per cent at the start of December.
Franklin went against the tide in late 2013 and early 2014, lifting its stake in Qantas from less than 11 per cent to more than 18 per cent as investors bailed out amid a bruising battle with Virgin.
The bet has paid off handsomely, with Qantas shares climbing from as low as 95 cents in December 2013 to more than $2.50 thanks to the company's $2 billion cost cutting program and the sliding oil price.
"It reiterates one of the principles of good investing," CMC Markets chief market strategist Michael McCarthy said.
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"Good investors will have a bit of steel about themselves and will back their own judgment over the market's and the reward for doing so can be quite substantial, as they (Franklin) have found in this situation."
Mr McCarthy said Franklin's decision to sell down its stake was likely linked to profit taking and good portfolio management, rather than concerns about Qantas's outlook.
"The effect of a rising share price, and in this case the greater than doubling of a share price, means that its now occupying a much larger chunk of their portfolio than it previously did," he said.
"That means its prudent from a portfolio management point of view to lock in some of those gains, it's a very natural response to the price rise."
Qantas shares were down two cents to $2.53 at 1400 AEDT on Thursday.
