Do You Believe in the Upside Potential of FTAI Infrastructure (FIP)?

Tourlite Capital Management, an investment management firm, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets were under pressure during the first quarter due to Trump’s tariff announcement. The increased uncertainty following Liberation Day led to significant declines in several of the fund’s event-driven and value positions. Tourlite Fund, LP returned -4.6% for the first quarter of 2025. Since its inception, the fund has achieved annualized returns of 7.5%, compared to 9.0% and 0.5% for the S&P 500 and the Russell 2000 Indexes, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Tourlite Capital Management highlighted stocks such as FTAI Infrastructure Inc. (NASDAQ:FIP). Headquartered in New York, New York, FTAI Infrastructure Inc. (NASDAQ:FIP) acquires, develops, and operates assets and businesses that represent infrastructure for customers in the transportation and energy industries. The one-month return of FTAI Infrastructure Inc. (NASDAQ:FIP) was 15.91%, and its shares lost 23.60% of their value over the last 52 weeks. On June 10, 2025, FTAI Infrastructure Inc. (NASDAQ:FIP) stock closed at $6.12 per share, with a market capitalization of $702.337 million.

Tourlite Capital Management stated the following regarding FTAI Infrastructure Inc. (NASDAQ:FIP) in its Q1 2025 investor letter:

“Despite the year-to-date share price performance, we are very optimistic as FTAI Infrastructure Inc. (NASDAQ:FIP) should experience a positive inflection in fundamentals and cash flow over the next 12 months. As these catalysts play out, we believe there could be over 100% upside to FIP current share price of ~$5.

FIP is approaching a fundamental inflection point. After years of groundwork, the company is poised to more than double earnings, with run-rate EBITDA expected to hit $300 million by year-end. There are several upcoming events such as new contracts and refinancing opportunities that could unlock meaningful value. In addition, FIP has multiple levers for growth including 1) datacenter development at Long Ridge this year, 2) incremental contracts at Jefferson, 3) a robust M&A pipeline at Transtar, and 4) further progress at Repauno with phase 3 permitting and phase 2 commencing operations in 2026.”

Aerial view of a deep-water port, with cargo ships coming and going.

FTAI Infrastructure Inc. (NASDAQ:FIP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held FTAI Infrastructure Inc. (NASDAQ:FIP) at the end of the first quarter, which was 23 in the previous quarter. While we acknowledge the potential of FTAI Infrastructure Inc. (NASDAQ:FIP) 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 undervalued AI stock set for massive gains.

In another article, we covered FTAI Infrastructure Inc. (NASDAQ:FIP) and shared Tourlite Capital Management’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.