Here’s What Boosted AerCap Holdings N.V. (AER) in 2025

L1 Capital, an investment management firm, released its “L1 Capital International Fund” (unhedged) fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Strategy focuses on investing in high-quality companies with favorable cashflow-based valuations. The letter highlighted the current investment environment, the Fund’s positioning, portfolio adjustments, and the quarterly (December) and yearly (2025) review. The firm considers valuation analysis essential for potential AI-focused investments; merely having conviction in AI isn’t enough to ensure a successful investment outcome. In general, 2025 was a strong year for all stock markets globally. The fund returned 2.2%, net of fees, compared to 2.5% for the benchmark (MSCI World Net Total Return Index in AUD). For the year, the fund returned 9.8% (net of fees) compared to 12.4% for the Index. In addition, you can check the Strategy’s top five holdings to know its best picks in 2025.

 In its fourth-quarter 2025 investor letter, L1 Capital International Fund highlighted stocks such as AerCap Holdings N.V. (NYSE:AER). AerCap Holdings N.V. (NYSE:AER) engages in the lease, financing, sale, and management of flight equipment. On January 14, 2026, AerCap Holdings N.V. (NYSE:AER) stock closed at $141.84 per share. One-month return of AerCap Holdings N.V. (NYSE:AER) was -1.02%, and its shares gained 48.04% of their value over the last 52 weeks. AerCap Holdings N.V. (NYSE:AER) has a market capitalization of $25.48 billion.

L1 Capital International Fund stated the following regarding AerCap Holdings N.V. (NYSE:AER) in its fourth quarter 2025 investor letter:

“We have referenced AerCap Holdings N.V. (NYSE:AER) extensively in prior reports, with a full write-up in the June 2024 Quarterly Report. The business continues to perform strongly, ahead of our base case, benefitting from a structural shortage of aircraft and aircraft engines, ongoing benefits from the highly value accretive acquisition of GE Capital Aviation Services in 2021, insurance recoveries after aircraft losses incurred when Russia invaded Ukraine, and ongoing prudent capital allocation. Following AerCap’s more than 50% share price appreciation during 2025, AerCap is now trading within our assessed fair value range. While AerCap remains the Fund’s largest position, we have slightly trimmed the investment for valuation and risk management reasons.”

AerCap Holdings N.V. (NYSE:AER) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 55 hedge fund portfolios held AerCap Holdings N.V. (NYSE:AER) at the end of the third quarter, compared to 63 in the previous quarter. While we acknowledge the risk and potential of AerCap Holdings N.V. (NYSE:AER) 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 AerCap Holdings N.V. (NYSE:AER) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered AerCap Holdings N.V. (NYSE:AER) and shared Oakmark Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 2025 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.