$3 Billion Hedge Fund’s Top 10 Stock Bets

1. GE Aerospace (NYSE:GE)

Return since Q1 End: 20%

Founded in 1892 and headquartered in Boston, Massachusetts, GE recently completed its transition to GE Aerospace (NYSE:GE) after spinning off its energy and healthcare segments into GE Vernova (NYSE) and GE Healthcare (NASDAQ), respectively. GE Aerospace (NYSE:GE) designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. With an installed base of around 44,000 commercial and 26,000 military aircraft engines, GE Aerospace(NYSE:GE) is the largest industrial company in the US. As of June 23, it has a market capitalization of $179.78 billion.

According to the Regulatory filings, Cinctive Capital Management owned 452,540 shares of GE Aerospace(NYSE:GE)  at the end of the first quarter of 2024 worth over $63 million, representing 2.94% of the portfolio. Based on the hedge funds database being tracked by Insider Monkey, TCI Fund Management is a leading shareholder in GE Aerospace(NYSE:GE) with 58 million shares worth over $8 billion.

Artisan Global Equity Fund stated the following regarding GE Aerospace (NYSE:GE) in its Q1 2024 investor letter:

“Our holdings in industrials, now our largest sector weighting, added to the portfolio’s outperformance as well. In particular, GE Aerospace (NYSE:GE) stood out as the largest contributor to relative performance this quarter. The storied American company and leader in aerospace, health care, renewable energy and power generation will split into three separate companies next quarter. We are most interested in its aerospace assets, given its growing pricing power in that industry. GE said it expects to increase deliveries of its popular LEAP airline engines by 20% to 25% this year given the escalating demand for air travel. The engine is manufactured by CFM International, a 50/50 joint venture between GE and Safran. Together, they make about 50% of the world’s commercial airline engines. In addition to strong fundamentals and pricing power in aerospace, we are attracted to GE’s clean hydrogen and decarbonization technologies in its alternative energy business, assets that are used to generate 30% of the world’s electricity. The unit benefits from the $435 billion in clean energy funding provided by the Inflation Reduction Act and Infrastructure Investment and Jobs Act.”

While we acknowledge the potential of GE as an investment, our conviction lies in the belief that some 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 more promising than GE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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