Is FTAI Aviation (FTAI) Positioned for Strong Growth?

Crossroads Capital LLC, an investment management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Crossroads Capital Investment Partners, LP fell 7.6% net of all fees and expenses in the first quarter of 2025. The fund has compounded at 13.3% and 16.0%, respectively, since inception, and over the last five years outperformed its most suitable benchmarks. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Crossroads Capital highlighted stocks such as FTAI Aviation Ltd. (NASDAQ:FTAI). FTAI Aviation Ltd. (NASDAQ:FTAI) owns and acquires aviation equipment for the transportation of goods and services. The one-month return of FTAI Aviation Ltd. (NASDAQ:FTAI) was 20.57%, and its shares gained 57.62% of their value over the last 52 weeks. On June 6, 2025, FTAI Aviation Ltd. (NASDAQ:FTAI) stock closed at $129.17 per share with a market capitalization of $13.247 billion.

Crossroads Capital stated the following regarding FTAI Aviation Ltd. (NASDAQ:FTAI) in its Q1 2025 investor letter:

“FTAI Aviation Ltd. (NASDAQ:FTAI): Every so often, an external shock creates a rare opening to invest in a high-quality business undergoing a value-unlocking transition, where the predictability of the end game draws us in with conviction. In this instance, a Muddy Waters short report published in January triggered just such an event, sending shares tumbling and sentiment into a tailspin. We entered into a position in the midst of this fallout.

FTAI, once a hodgepodge of transportation assets under Fortress Investment Group, has now executed what we believe is one of the sharpest pivots in the industrial landscape. In the span of a couple of years, FTAI shed both its MLP structure and non core infrastructure, emerging as a pure-play aerospace platform. Management has built the first leg of their platform around the CFM56 engine – the workhorse of global narrow-body aviation – unlocking value by treating the engine not as a monolith, but as a set of interchangeable, high-value modules. By building the largest pool of CFM56 modules and internalizing MRO, we believe FTAI has created a network effect: the more modules it owns, the more efficiently it can service, repair, and exchange engines across the industry. With OEMs looking at close to a decade of backlog, the aftermarket is expected to have a long tailwind…” (Click here to read the full text)

FTAI Aviation Ltd. (FTAI): Among Billionaire Quants’ Two Sigma’s 10 Stock Picks with Huge Upside Potential

A team of airline employees surrounded by flight deck controls, with a variety of aircraft outside.

FTAI Aviation Ltd. (NASDAQ:FTAI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held FTAI Aviation Ltd. (NASDAQ:FTAI) at the end of the first quarter, which was 54 in the previous quarter. While we acknowledge the potential of FTAI Aviation Ltd. (NASDAQ:FTAI) 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 Aviation Ltd. (NASDAQ:FTAI) and shared Artisan Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 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.