Should You Invest in StandardAero (SARO)?

Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Growth Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund (Investor Shares) returned 13.29% (net of fees) in the quarter, compared to the Russell Midcap Growth Index’s 18.20% return. Stock selection in the Industrials and Information Technology sectors negatively impacted the performance, while holdings in the Financials sector contributed. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Parnassus Mid Cap Growth Fund highlighted stocks such as StandardAero, Inc. (NYSE:SARO). StandardAero, Inc. (NYSE:SARO) is an aerospace engine aftermarket services provider for fixed and rotary wing aircraft. The one-month return of StandardAero, Inc. (NYSE:SARO) was -4.15%, and YTD its shares gained 4.36% of their value. On September 24, 2025, StandardAero, Inc. (NYSE:SARO) stock closed at $25.84 per share, with a market capitalization of $8.643 billion.

Parnassus Mid Cap Growth Fund stated the following regarding StandardAero, Inc. (NYSE:SARO) in its second quarter 2025 investor letter:

“During the quarter, we initiated a position in aircraft engine maintenance, repair and overhaul provider StandardAero, Inc. (NYSE:SARO), which offers a resilient business because its non discretionary service provides strong recurring revenue. StandardAero’s ability to quickly and reliably service a variety of aircraft engines in its global shop network makes it a partner of choice. Engine maintenance, repair and overhaul work is predictable and non discretionary, and StandardAero has opportunities for growth from servicing new engines and working with more aircraft owners.”

Why VSE Corp (VSEC) Is Surging In 2025?

StandardAero, Inc. (NYSE:SARO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 48 hedge fund portfolios held StandardAero, Inc. (NYSE:SARO) at the end of the second quarter, compared to 50 in the previous quarter. While we acknowledge the risk and potential of StandardAero, Inc. (NYSE:SARO) 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 StandardAero, Inc. (NYSE:SARO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered StandardAero, Inc. (NYSE:SARO) and shared the list of best IPO stocks to buy and hold for 3 years. In addition, please check out our hedge fund investor letters Q2 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.