Tourlite Capital Management, an investment management firm, released its third quarter 2024 investor letter, a copy of which can be downloaded here. Tourlite Fund, LP Founder Class returned 4.5% for Q3 2024 and 13.8% year-t0-date while the S&P 500 Index returned 5.9% and 9.3%, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Tourlite Capital Management highlighted stocks like FTAI Aviation Ltd. (NASDAQ:FTAI) in the third quarter 2024 investor letter. FTAI Aviation Ltd. (NASDAQ:FTAI) owns and acquires aviation and offshore energy equipment for transportation. The one-month return of FTAI Aviation Ltd. (NASDAQ:FTAI) was 0.81%, and its shares gained 260.95% of their value over the last 52 weeks. On December 5, 2024, FTAI Aviation Ltd. (NASDAQ:FTAI) stock closed at $158.35 per share with a market capitalization of $16.239 billion.
Tourlite Capital Management stated the following regarding FTAI Aviation Ltd. (NASDAQ:FTAI) in its Q3 2024 investor letter:
“FTAI Aviation Ltd. (NASDAQ:FTAI) continues to benefit from strong aerospace aftermarket tailwinds, with recent issues at Boeing presenting additional upside to both its short- and long-term business prospects.
As noted in our second quarter letter, FTAI’s Q2 results exceeded expectations, beating consensus estimates and prompting management to raise its guidance. Notably, FTAI increased its 2026 EBITDA target by 25%, from $1 billion to $1.25 billion. At the upper end of the newly raised Aerospace EBITDA guidance, FTAI has already achieved 46% of the $325-$350 million target, with this segment delivering approximately 30% quarter[1]over-quarter growth for the past four quarters.
While we believe strong financial performance will continue to support the stock price, we also see significant upside potential from narrowing the valuation gap between FTAI and its aerospace aftermarket peers. Despite the stock’s recent appreciation, we remain confident in FTAI’s outlook, with multiple catalysts expected to drive further growth through the remainder of the year.”
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, 41 hedge fund portfolios held FTAI Aviation Ltd. (NASDAQ:FTAI) at the end of the third quarter which was 33 in the previous quarter. FTAI Aviation Ltd. (NASDAQ:FTAI) continued its good start to the year and reported adjusted EBITDA of $232 million in Q3 2024, up 8% from Q2 2024 and 50% 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 Diamond Hill Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.