The London Company SMID Cap Trimmed AerCap Holdings (AER) on Share Price Appreciation

The London Company, an investment management company, released “The London Company SMID Cap Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. Following a downturn in Q1, U.S. stocks experienced a double-digit gain in Q2, amid volatility stemming from tariff news. A risk-on rally followed due to a temporary pause in tariff escalations, widespread optimism around enterprise AI, and a healthy earnings outlook. Against this backdrop, the portfolio fell 0.6% (-0.8% net) during the second quarter vs. an 8.6% increase in the Russell 2500 Index. Sector allocation contributed to the fund’s performance in the quarter, while stock selection detracted. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its second quarter 2025 investor letter, The London Company SMID Cap Strategy 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. The one-month return AerCap Holdings N.V. (NYSE:AER) was -2.11%, and its shares gained 21.66% of their value over the last 52 weeks. On July 28, 2025, AerCap Holdings N.V. (NYSE:AER) stock closed at $111.85 per share, with a market capitalization of $20.335 billion.

The London Company SMID Cap Strategy stated the following regarding AerCap Holdings N.V. (NYSE:AER) in its second quarter 2025 investor letter:

“AerCap Holdings N.V. (NYSE:AER) – AER delivered strong performance this quarter, bolstered by solid Q1 2025 results and a favorable UK court ruling on $1B in insurance claims related to the Russia-Ukraine War. With the largest aircraft portfolio in a seller’s market, AerCap is well-positioned to grow book value per share through strategic asset sales and stock buybacks, capitalizing on robust market dynamics.

AerCap Holdings (AER) – We trimmed AER on strength. The stock has significantly outperformed the broader market since early 2021. We remain confident in the outlook for air travel and for AER to benefit by leasing planes to the largest airlines.”

An impressive fleet of aircrafts taking off from the main runway of the Regional Air Carrier services.

AerCap Holdings N.V. (NYSE:AER) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held AerCap Holdings N.V. (NYSE:AER) at the end of the first quarter, which was 69 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 the list of best industrial stocks to buy. AerCap Holdings N.V. (NYSE:AER) contributed to The London Company Mid Cap Strategy’s performance in the previous quarter. 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.