ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, large cap and growth companies lost their dominance over smaller cap and value stocks. However, the strategy underperformed its benchmark in the third quarter. Underexposure to the benchmark’s strengths (e.g., biotech, smaller cap, poorer quality, bond proxies) and challenges in consumer staples and discretionary names affected strategy performance. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Mid Cap Growth Strategy highlighted stocks like FTAI Aviation Ltd. (NASDAQ:FTAI) in the third quarter 2024 investor letter. FTAI Aviation Ltd. (NASDAQ:FTAI) owns and acquires aviation and offshore energy equipment for transportation that operate s through Aviation Leasing and Aerospace Products segments. The one-month return of FTAI Aviation Ltd. (NASDAQ:FTAI) was -7.65%, and its shares gained 235.50% of their value over the last 52 weeks. On December 10, 2024, FTAI Aviation Ltd. (NASDAQ:FTAI) stock closed at $150.00 per share with a market capitalization of $15.383 billion.
ClearBridge Mid Cap Growth Strategy stated the following regarding FTAI Aviation Ltd. (NASDAQ:FTAI) in its Q3 2024 investor letter:
“We are encouraged by the high proportion of positive returns on new ideas added over the last five quarters of elevated new idea generation, with solid contributions to overall performance despite their representing a modest portion of the Strategy’s assets.
We continued to deliver strong new idea generation, adding four new investments in the quarter: OneStream (through participating in its IPO), Abercombie & Fitch, Wintrust Financial, and FTAI Aviation Ltd. (NASDAQ:FTAI).
FTAI Aviation is an aerospace company that offers both engine and aircraft leasing services, as well as an aftermarket for engine products and services. With a focus on several widely used and aging engine platforms, the company’s differentiated modular approach to aftermarket products, along with the unique assets from its leasing business, offers meaningful revenue and earnings growth 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 31 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held FTAI Aviation Ltd. (NASDAQ:FTAI) at the end of the third quarter which was 33 in the previous quarter. FTAI Aviation Ltd. (NASDAQ:FTAI) continued its good start to the year and reported adjusted EBITDA of $232 million in Q3 2024, up 8% from Q2 2024 and 50% from Q2 2023. 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 cheapest AI stock.
In another article, we discussed FTAI Aviation Ltd. (NASDAQ:FTAI) and shared Tourlite Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q3 2024 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.