Is FTAI Aviation (FTAI) a Smart Investment Pick?
Tourlite Capital Management, an investment management firm, released its first quarter 2023 investor letter, a copy of which can be downloaded here. Tourlite Fund, LP Founder Class gained 1.0% for the first quarter of 2023. The fund has returned 6.1% since inception in April 2022, versus the -7.8% return of the S&P 500 and the -11.6% of the Russell 2000 for the same period. Spare some time to check the fund’s top 5 holdings to know more about their top bets for 2023.
In its Q1 2023 investor letter, Tourlite Capital Management mentioned FTAI Aviation Ltd. (NASDAQ:FTAI) and explained its insights for the company. Founded in 2014, FTAI Aviation Ltd. (NASDAQ:FTAI) is a US-based aerospace company with a $2.9 billion market capitalization. FTAI Aviation Ltd. (NASDAQ:FTAI) delivered a 71.03% return since the beginning of the year, while its 12-month returns are up by 80.47%. The stock closed at $29.70 per share on June 22, 2023.
Here is what Tourlite Capital Management has to say about FTAI Aviation Ltd. (NASDAQ:FTAI) in its Q1 2023 investor letter:
"The fund has held a position in FTAI since inception. In 2022, it was a significant detractor from performance. FTAI remains a core position and the fund holds a position in FIP, the infrastructure spinoff. We believed FTAI was significantly mispriced for a couple of reasons. First, FTAI was structured as a partnership which limits funds and indexes ownership. By simplifying FTAI as a C-Corp which eliminates its partnership tax classification, we estimate that over 30 million shares will be subsequently held by passive index funds. This represents ~30% of the float. Second, FTAI operated in two distinct segments: aviation and infrastructure. The aviation segment, in particular, is seeing an inflection in business fundamentals. Therefore, spinning off the infrastructure business has allowed investors to better appreciate the true earnings power of both businesses as standalone companies."
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Our calculations show that FTAI Aviation Ltd. (NASDAQ:FTAI) was not able to secure a spot on our list of the 30 Most Popular Stocks Among Hedge Funds. FTAI Aviation Ltd. (NASDAQ:FTAI) was in 28 hedge fund portfolios at the end of the first quarter of 2023, compared to 25 funds in the previous quarter. FTAI Aviation Ltd. (NASDAQ:FTAI) delivered a 20.25% return in the past 3 months.
Earlier this year, we also discussed FTAI Aviation Ltd. (NASDAQ:FTAI) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q1 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
