Here’s How CAE (CAE) Benefitted in Q4

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fourth quarter was turbulent for mid-size stocks, which surged following the election and interest rate reductions before holding steady as the market shifted back to large cap leadership. The strategy outperformed its Russell Midcap Index during the fourth quarter driven by strong stock selection among IT and industrials holdings. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, ClearBridge Mid Cap Strategy emphasized stocks such as CAE Inc. (NYSE:CAE). CAE Inc. (NYSE:CAE) is a simulation training and critical operations support provider that operates through Civil Aviation and Defense and Security. The one-month return of CAE Inc. (NYSE:CAE) was 1.52%, and its shares gained 32.83% of their value over the last 52 weeks. On February 26, 2025, CAE Inc. (NYSE:CAE) stock closed at $24.76 per share with a market capitalization of $7.938 billion.

ClearBridge Mid Cap Strategy stated the following regarding CAE Inc. (NYSE:CAE) in its Q4 2024 investor letter:

“We also benefited from our strong stock selection in the industrials sector. CAE Inc. (NYSE:CAE), which provides simulation training and critical operations support to both civil and defense aviation customers, reported solid quarterly earnings stemming from its defense business. In addition to the company’s strong market share and customer demand in civil flight simulation, its strong growth in its defense business and active approach to improving its balance sheet should be long-term growth catalyst.”

Why CAE Inc. (CAE) Soared On Friday?

A ground crew preparing an aircraft for launch, a sense of urgency in their movements.

CAE Inc. (NYSE:CAE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held CAE Inc. (NYSE:CAE) at the end of the fourth quarter compared to 16 in the third quarter. CAE Inc.’s (NYSE:CAE) consolidated revenues reached $1.22 billion in the third quarter of fiscal 2025, marking a 12% increase from the same period last year. While we acknowledge the potential of CAE Inc. (NYSE:CAE) 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 addition, please check out our hedge fund investor letters Q4 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.