Solid Results Lifted AerCap Holdings (AER) in Q4

The London Company, an investment management company, released its fourth-quarter 2025 investor letter for its “The London Company Mid Cap Strategy”. A copy of the letter can be downloaded here. In Q4 2025, US equities posted the third consecutive quarter of higher returns, with the Russell 3000 Index rising 2.4%. The market highlighted how investors balanced the optimism on earnings growth and concerns regarding AI returns and cooling macroeconomic factors. In the quarter, the portfolio returned 3.2% (3.0% net) compared to a 0.2% increase in the Russell Midcap Index. Both stock selection and sector exposure contributed to the relative performance of the portfolio in the quarter. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, London Company Mid Cap Strategy highlighted AerCap Holdings N.V. (NYSE:AER). AerCap Holdings N.V. (NYSE:AER) is a leading aviation leasing company headquartered in Dublin, Ireland. On February 24, 2026, AerCap Holdings N.V. (NYSE:AER) stock closed at $148.06 per share. One-month return of AerCap Holdings N.V. (NYSE:AER) was 3.80%, and its shares gained 44.67% over the past 52 weeks. AerCap Holdings N.V. (NYSE:AER) has a market capitalization of $25.27 billion.

London Company Mid Cap Strategy stated the following regarding AerCap Holdings N.V. (NYSE:AER) in its fourth quarter 2025 investor letter:

"AerCap Holdings N.V. (NYSE:AER) – AER shares performed well all year after reporting solid quarterly results. We believe the company is sitting in the enviable position of owning the largest portfolio of aircraft in a seller’s market. The insurance recoveries during the year were a nice windfall, which was used to repurchase shares. The company should be able to continue growing book value per share via large purchase leasebacks or M&A, given its historically low leverage."

AerCap Holdings N.V. (NYSE:AER) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 54 hedge fund portfolios held AerCap Holdings N.V. (NYSE:AER) at the end of the fourth quarter, compared to 55 in the previous quarter. While we acknowledge the potential of AerCap Holdings N.V. (NYSE:AER) 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 AerCap Holdings N.V. (NYSE:AER) and shared a list best all-time high stocks to buy according to Wall Street. In addition, please check out our hedge fund investor letters Q4 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.