What Makes GE Aerospace (GE) a Lucrative Investment?

Mar Vista Investment Partners, LLC, an investment management company, released its “Mar Vista U.S. Quality Premier Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first half of 2025 concluded on a remarkable note, with U.S. stocks bouncing back from earlier volatility to reach new record highs. The S&P 500® Index and the Nasdaq Composite led the recovery, both ending the second quarter at all-time peaks. In the second quarter, the strategy returned +14.29% net of fees, compared to +11.10% and +10.94% returns for the Russell 1000 Index and the S&P 500 Index, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Mar Vista U.S. Quality Premier Strategy highlighted stocks such as GE Aerospace (NYSE:GE). General Electric Company, operating under the name GE Aerospace (NYSE:GE), develops and manufactures engines for commercial and military aircraft. The one-month return of GE Aerospace (NYSE:GE) was 6.75%, and its shares gained 58.84% of their value over the last 52 weeks. On July 10, 2025, GE Aerospace (NYSE:GE) stock closed at $252.57 per share, with a market capitalization of $271.748 billion.

Mar Vista U.S. Quality Premier Strategy stated the following regarding GE Aerospace (NYSE:GE) in its second quarter 2025 investor letter:

"We initiated a position in GE Aerospace (NYSE:GE) based on its durable competitive advantages, anchored by its dominant market share in commercial and military aircraft engines—powering over 60% of the global narrowbody fleet through its joint ventures and proprietary platforms. Its strong aftermarket business, with long-term maintenance contracts and a growing installed base, provides a recurring revenue stream that buffers against cyclicality. The company’s leadership in high-bypass turbofan technology and its ability to scale production efficiently have fortified its position, especially as airlines prioritize engine reliability and fuel efficiency. Meanwhile, management, led by CEO Larry Culp, continues to execute with precision, navigating new tariff regimes by localizing supply chains, securing alternate sources of key components, and optimizing logistics costs."

GE Aerospace (NYSE:GE) is in 29th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 104 hedge fund portfolios held GE Aerospace (NYSE:GE) at the end of the first quarter, which was 101 in the previous quarter. While we acknowledge the potential of GE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered GE Aerospace (NYSE:GE) and shared the list of best US stocks to buy and hold in 2025. 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.