Do You Believe in the Upside Potential of FTAI Aviation Ltd. (FTAI)?

Crossroads Capital LLC, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Crossroads Capital Investment Partners, LP, appreciated 36.9% net of all fees and expenses in the second quarter of 2025, making the YTD return 26.1% net through Q2 2025. The fund has compounded at 17% (net) since inception. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Crossroads Capital highlighted stocks such as FTAI Aviation Ltd. (NASDAQ:FTAI). FTAI Aviation Ltd. (NASDAQ:FTAI) owns and acquires aviation equipment for the transportation of goods and people. The one-month return of FTAI Aviation Ltd. (NASDAQ:FTAI) was 11.79%, and its shares gained 22.84% of their value over the last 52 weeks. On October 2, 2025, FTAI Aviation Ltd. (NASDAQ:FTAI) stock closed at $172.16 per share, with a market capitalization of $17.659 billion.

Crossroads Capital stated the following regarding FTAI Aviation Ltd. (NASDAQ:FTAI) in its second quarter 2025 investor letter:

"Our position in FTAI Aviation Ltd. (NASDAQ:FTAI) is in a similar boat and exemplifies how markets often fail to recognize the impact of cyclical improvements on companies with high operational leverage paired with diminished capital requirements. Even more so when that business is undergoing a qualitative transformation, as FTAI is. And yet, despite analysts expecting 42% revenue growth for Q2, the market continues to value the stock as if a broader commercial aviation recovery is somehow uncertain or temporary. We think that’s pretty silly and therefore added to our position near the quarterly lows.

Looking forward, the company's focus on an aging fleet of CFM56 and V2500 engines ensures it's well positioned to benefit from the global aviation industry's continued recovery while also maintaining substantial idiosyncratic torque towards an increasingly capital-light, high-margin business model – one characterized by recurring revenues and a more durable moat. While up substantially relative to our average cost, the disconnect between what we believe FTAI’s fundamental value is and the market price suggests highly attractive risk-adjusted returns for some time to come…” (Click here to read the full text)

FTAI Aviation Ltd. (NASDAQ:FTAI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 48 hedge fund portfolios held FTAI Aviation Ltd. (NASDAQ:FTAI) at the end of the second quarter, compared to 49 in the previous quarter. While we acknowledge the potential of FTAI Aviation Ltd. (NASDAQ:FTAI) 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 FTAI Aviation Ltd. (NASDAQ:FTAI) and shared the list of stocks with consistent growth to invest in. 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.