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."

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 potential of StandardAero, Inc. (NYSE:SARO) 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 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.