AAR Corp. (AIR) Benefitted From Rebound In Air Miles Travel

Mairs & Power, an investment advisor, released the “Mairs & Power Small Cap Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. The Mairs & Power Small Cap Fund was down 2.04% year-to-date while the S&P Small Cap 600 TR benchmark was up 0.81%, and the Morningstar U.S. Fund Small Blend was up by 2.91%. The Fund’s lack of Energy equities and holdings in the Finance, Technology, Consumer Discretionary, Utilities, and Materials sectors have resulted in year-to-date underperformance relative to the benchmark. Relative outperformance in the consumer staples, real estate, healthcare, industrials, and communications services sectors helped to partially offset this. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Mairs & Power Small Cap Fund highlighted stocks like AAAR Corp. (NYSE:AIR) in the third quarter 2023 investor letter. Headquartered in Wood Dale, Illinois, AAR Corp. (NYSE:AIR) is a products and services provider to commercial aviation, government, and defense markets. On November 28, 2023, AAR Corp. (NYSE:AIR) stock closed at $68.64 per share. One-month return of AAR Corp. (NYSE:AIR) was 15.63%, and its shares gained 51.52% of their value over the last 52 weeks. AAR Corp. (NYSE:AIR) has a market capitalization of $2.423 billion.

Mairs & Power Small Cap Fund made the following comment about AAR Corp. (NYSE:AIR) in its Q3 2023 investor letter:

“Relative outperformance in the period came from AAR Corp. (NYSE:AIR). AAR Corp. (AIR), a supplier of parts and maintenance/repair services to the airline industry, is benefiting from a rebound in air miles traveled, and driving margins higher for the company.”

A technician using advanced radiographic testing equipment to inspect an aircraft.

AAR Corp. (NYSE:AIR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held AAR Corp. (NYSE:AIR) at the end of third quarter which was 23 in the previous quarter.

We discussed AAR Corp. (NYSE:AIR) in another article and shared Mairs & Power Small Cap Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 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.