Yahoo Finance Here’s L1 Capital International Fund’s Investment Thesis for AerCap Holdings N.V. (AER)
L1 Capital, an investment management firm, released its “L1 Capital International Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. A copy of the letter can be downloaded here. In the June quarter, the fund returned -3.0% (net of fees) compared to 0.3% return for the Benchmark (all in Australian dollars). The Australian dollar appreciated 1.8% against the U.S. dollar in the quarter and 2.7% against the Euro, decreasing the Fund and Benchmark Australian dollar reported quarterly returns. The Fund returned 22.2% (net of fees) outperforming the Benchmark return of 19.8% (all in Australian dollars) for the year ended 30 June 2024. The Australian dollar appreciated 0.3% against the U.S. dollar and 2.0% against the Euro, thus currency had a limited impact on Australian dollar returns of the Fund and Benchmark over the past 12 months. Please check the fund’s top five holdings to know its best picks in 2024.
L1 Capital International Fund highlighted stocks like AerCap Holdings N.V. (NYSE:AER) in the second quarter 2024 investor letter. AerCap Holdings N.V. (NYSE:AER) engages in the lease, financing, sale, and management of flight equipment. The one-month return of AerCap Holdings N.V. (NYSE:AER) was 3.32%, and its shares gained 43.78% of their value over the last 52 weeks. On July 9, 2024, AerCap Holdings N.V. (NYSE:AER) stock closed at $94.02 per share with a market capitalization of $18.648 billion.
L1 Capital International Fund stated the following regarding AerCap Holdings N.V. (NYSE:AER) in its Q2 2024 investor letter:
"We made a number of relatively modest adjustments to the Portfolio in the June 2024 quarter, totalling less than 10% of the Fund’s investments. We added to our investment in AerCap Holdings N.V. (NYSE:AER), with the company entering the top ten Fund holdings. We consider the current share price to be highly attractive. The investment thesis for AerCap is profiled in detail in the next section of this quarterly report
Every time you catch a flight, you probably don’t spend a huge amount of time thinking about whether the plane you are sitting in was bought or leased by the airline. Yet this is an important decision for the airline management team. Aircraft leasing is a well-established, but highly specialised niche of the secured asset lending industry. There are a wide range of aircraft leasing capital providers, but publicly traded aircraft lessors are limited, and the sector is not well known outside of the industry. While AerCap is by far and away the largest participant in the aircraft leasing industry, we believe it is flying below the radar of most investors…” (Click here to read the full text)
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AerCap Holdings N.V. (NYSE:AER) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held AerCap Holdings N.V. (NYSE:AER) at the end of the first quarter which was 61 in the previous quarter. AerCap Holdings N.V. (NYSE:AER) reported $3.29 of adjusted earnings per share in the first quarter, an increase of 40% from last year and adjusted net income of $658 million. While we acknowledge the potential of AerCap Holdings N.V. (NYSE:AER) 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.
We discussed AerCap Holdings N.V. (NYSE:AER) in another article and shared O’keefe Stevens Advisory's views on the company. 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.
