Fred Alger Management, an investment management company, released its “Alger Mid Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2026, Class A shares of the Alger Mid Cap Focus Fund underperformed the Russell Midcap Growth Index in a volatile market environment. The Communication Services and Industrials sectors contributed to the fund’s performance while Health Care and Consumer Staples detracted. Two major influences changed the investing environment in the quarter. The software industry experienced significant disruption due to the rise of agentic artificial intelligence tools, whereas the U.S.-Iran conflict that began in late February sent the oil prices more than $100 per barrel for the first time in four years. The Fund identifies opportunities for companies that are adopting and facilitating the technology as it evolves into an agentic phase, despite the market’s focus on industries affected by AI advancements. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Alger Mid Cap Fund highlighted FTAI Aviation Ltd. (NASDAQ:FTAI) as a notable contributor. FTAI Aviation Ltd. (NASDAQ:FTAI) is an aviation company that owns, acquires, and sells aviation equipment. On April 17, 2026, FTAI Aviation Ltd. (NASDAQ:FTAI) stock closed at $259.13 per share. One-month return of FTAI Aviation Ltd. (NASDAQ:FTAI) was 7.28%, and its shares gained 196.66% over the past 52 weeks. FTAI Aviation Ltd. (NASDAQ:FTAI) has a market capitalization of $26.58 billion.
Alger Mid Cap Fund stated the following regarding FTAI Aviation Ltd. (NASDAQ:FTAI) in its Q1 2026 investor letter:
“FTAI Aviation Ltd. (NASDAQ:FTAI) is a global aviation company specializing in the acquisition, leasing, and sales of aircraft and aircraft engines, particularly focusing on CFM56 and V2500 engines. The company operates through two main segments: Aviation Leasing, which manages and leases aviation assets generating rental income, and Aerospace Products, which develops, manufactures, repairs, and sells aircraft engines and aftermarket components. FTAI primarily earns revenue from leasing fees, equipment sales, and maintenance services. We believe FTAI has established a differentiated business model that maximizes profits from a highly attractive niche within the aerospace aftermarket—used CFM56 jet engines, which dominate short- to medium-haul flights globally. During the quarter, shares contributed positively to performance fueled by several reinforcing catalysts. Most notably, the company’s late-December launch of FTAI Power (a platform to convert retired CFM56 engines into aeroderivative gas turbines capable of supplying electricity to AI-driven data centers) captured significant investor enthusiasm and opened an entirely new addressable market. The company also delivered better than-expected fiscal fourth-quarter results, leading management to raise its full-year earnings outlook. Management further signaled confidence in the growth trajectory by nearing the completion of its first structured aircraft acquisition program and announcing the launch of a second.”
FTAI Aviation Ltd. (NASDAQ:FTAI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 56 hedge fund portfolios held FTAI Aviation Ltd. (NASDAQ:FTAI) at the end of the fourth quarter, up from 51 in the previous quarter. While we acknowledge the risk and potential of FTAI Aviation Ltd. (NASDAQ:FTAI) 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 time frame. If you are looking for an AI stock that is more promising than FTAI Aviation Ltd. (NASDAQ:FTAI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered FTAI Aviation Ltd. (NASDAQ:FTAI) and shared Tourlite Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
