Diamond Hill Capital, an investment management company, released its “Small Cap Fund” second-quarter 2024 investor letter. A copy of the same can be downloaded here. Equity markets reported mixed results in the second quarter of 2024. However, the broad market Russell 3000 Index and the large-cap-focused Russell 1000 Index advanced approximately 3%, most other market segments posted negative returns. Diamond Hill Small Cap Fund slightly trailed its benchmark, the Russell 2000 Index, in Q2 and returned -3.42% while the benchmark return was -3.28% during the same period. For more information on the fund’s top picks in 2024, please check its top five holdings.
Diamond Hill Small Cap Fund highlighted stocks like FTAI Aviation Ltd. (NASDAQ:FTAI) in the second quarter 2024 investor letter. Headquartered in New York, New York, FTAI Aviation Ltd. (NASDAQ:FTAI) acquires and manages transportation infrastructure and equipment operating through Aviation Leasing and Aerospace Products. On August 7, 2024, FTAI Aviation Ltd. (NASDAQ:FTAI) stock closed at $100.78 per share. One-month return of FTAI Aviation Ltd. (NASDAQ:FTAI) was 4.49%, and its shares gained 191.78% of their value over the last 52 weeks. FTAI Aviation Ltd. (NASDAQ:FTAI) has a market capitalization of $10.301 billion.
Diamond Hill Small Cap Fund stated the following regarding FTAI Aviation Ltd. (NASDAQ:FTAI) in its Q2 2024 investor letter:
“On an individual holdings basis, among our top Q2 contributors were FTAI Aviation Ltd. (NASDAQ:FTAI) and United States Lime & Minerals. Transportation infrastructure company FTAI Aviation notched two important wins in Q2: It launched a maintenance, repair and exchange (MRE) program for the V2500 aircraft engine, and it signed a deal with Pratt & Whitney to gain access to original equipment manufacturer (OEM) parts. Combined, these agreements further solidify FTAI’s position as a full-fledged MRE competitor in aerospace engines — it now provides service offerings on both narrowbody engine programs, which have the largest installed base of all commercial aerospace engines.”
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, 30 hedge fund portfolios held FTAI Aviation Ltd. (NASDAQ:FTAI) at the end of the first quarter which was 25 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 Diamond Hill Small Cap Fund’s views on the company in the previous quarter. 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.
