Will FTAI Aviation (FTAI) Benefit from Strong Demand in Aerospace Market?
Next Century Growth Investors, LLC, an investment Management Company, released its “Small Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The equities market in 2024 saw mixed results in the second quarter. Small-cap indices generally posted negative results, whereas large-cap indices posted favorable results. The strategy returned (3.32)% net of fees in the quarter, compared to a (2.91)% return for the Russell 2000 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
NCG Small Cap Strategy highlighted stocks like FTAI Aviation Ltd. (NASDAQ:FTAI) in the second quarter 2024 investor letter. FTAI Aviation Ltd. (NASDAQ:FTAI) acquires and manages transportation infrastructure and offshore energy equipment for the transportation. The one-month return of FTAI Aviation Ltd. (NASDAQ:FTAI) was 14.42%, and its shares gained 237.20% of their value over the last 52 weeks. On August 29, 2024, FTAI Aviation Ltd. (NASDAQ:FTAI) stock closed at $124.63 per share with a market capitalization of $12.739 billion.
NCG Small Cap Strategy stated the following regarding FTAI Aviation Ltd. (NASDAQ:FTAI) in its Q2 2024 investor letter:
"FTAI Aviation Ltd. (NASDAQ:FTAI) is an aftermarket aerospace company focused on engine repair and maintenance for commercial airlines. They have carved out a strong competitive position in the CFM56 engine, which is one of the largest commercial aftermarket opportunities, and they recently added the V2500 engine to their addressable market. We believe the aerospace aftermarket will continue to experience strong demand, allowing FTAI to deliver strong revenue and profit growth."
A team of airline employees surrounded by flight deck controls, with a variety of aircraft outside.
FTAI Aviation Ltd. (NASDAQ:FTAI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held FTAI Aviation Ltd. (NASDAQ:FTAI) at the end of the second quarter which was 30 in the previous quarter. FTAI Aviation Ltd. (NASDAQ:FTAI) continued its good start to the year and reported adjusted EBITDA of $213.9 million in Q2 2024, up 30% from Q1 2024 and 40% from Q2 2023. While we acknowledge the potential of FTAI Aviation Ltd. (NASDAQ:FTAI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed FTAI Aviation Ltd. (NASDAQ:FTAI) and shared Morgan Stanley’s highest conviction stocks and the top stocks to buy. FTAI Aviation Ltd. (NASDAQ:FTAI) contributed to the performance of Diamond Hill Small Cap Fund in Q2 2024. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.