GE Aerospace (GE): Among Billionaire Chris Hohn's Stock Picks with Huge Upside Potential

We recently published a list of Billionaire Chris Hohn’s 8 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where GE Aerospace (NYSE:GE) stands against other billionaire Chris Hohn’s stock picks with huge upside potential.

The Children’s Investment Fund Management, also known as TCI Fund Management, is a British hedge fund firm headquartered in London and founded in 2003 by Sir Christopher Anthony Hohn. Hohn, a British billionaire and Harvard MBA graduate (Baker Scholar), also serves as the fund’s portfolio manager. TCI is distinguished by its value-oriented, fundamental investment philosophy and its focus on long-term, high-conviction positions in globally competitive businesses. The fund employs a private equity-style approach to public market investing, relying on deep fundamental research, constructive engagement with company management, and a willingness to use shareholder activism when necessary to drive performance. Known for its concentrated portfolio structure, the TCI Master Fund maximizes alpha by targeting high-quality companies with sustainable competitive advantages and predictable free cash flow.

TCI’s investment strategy includes opportunistic ventures into corporate transformations and special situations. In line with its activist reputation, the firm is prepared to exert influence on company direction and governance when it deems necessary to unlock shareholder value. This assertive approach has helped cement TCI’s reputation as one of the most successful and influential hedge funds in the world.

A significant aspect of TCI’s operations is its real estate lending business, which was launched in 2014 under the TCI Real Estate Partners Lending Funds. These funds invest alongside The Children’s Investment Fund Foundation (CIFF), the philanthropic arm initially supported by the fund’s profits. The lending strategy centers on first mortgage and senior secured lending for high-quality assets, with a particular focus on prime locations in major North American and European cities. This real estate arm reflects TCI’s broader investment philosophy, seeking security, quality, and long-term value.

As of Q4 2024, TCI managed $42.4 billion in securities across just nine core stock holdings, reflecting its highly concentrated and conviction-driven investment approach. The firm’s blend of fundamental analysis, disciplined value investing, and strategic activism continues to position it as a powerful force in global capital markets. Through its unique alignment of investment and philanthropic missions, TCI also exemplifies how hedge funds can blend financial performance with broader societal impact.

Our Methodology

For this article, we searched through TCI Fund Management’s Q4 2024 13F filings to identify billionaire Chris Hohn’s stock picks with the highest upside potential. We compiled the equities with upside potential higher than 8% at the time of writing this article and analyzed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).

GE Aerospace (NYSE:GE)

Number of Hedge Fund Holders as of Q4: 101

TCI Fund Management’s Equity Stake: $7.67 Billion

Upside Potential as of May 6: 9.88%

Headquartered in Evendale, Ohio, GE Aerospace (NYSE:GE) is a cornerstone of the global aviation industry, providing advanced propulsion systems and aftermarket services for commercial and military aircraft. The company has emerged as a dominant aircraft engine manufacturer due to its historical leadership, strategic partnerships, and technological investments.

For the first quarter of 2025, GE Aerospace (NYSE:GE) posted robust performance across key metrics. Total orders rose 12% year over year to $12.3 billion, while GAAP revenue increased 11% to $9.9 billion. Adjusted revenue also saw an 11% lift, reaching $9.0 billion. The company delivered GAAP profit of $2.2 billion, up 13%, while adjusted operating profit surged 38% to $2.1 billion. Margins expanded significantly, with adjusted operating margin improving by 460 basis points to 23.8%.

Earnings per share reflected this momentum. Adjusted EPS came in at $1.49, representing a sharp 60% increase from the prior year, while GAAP EPS was $1.83, up 16%. Although free cash flow declined 14% to $1.4 billion, the company maintained healthy cash generation amid rising orders and stronger commercial services performance.

Despite macroeconomic headwinds, particularly trade-related uncertainty due to renewed tariffs, GE Aerospace (NYSE:GE) has reaffirmed its full-year earnings guidance. CEO H. Lawrence Culp, Jr. has actively engaged with U.S. leadership to advocate for a return to tariff-free trade under the Civil Aircraft Agreement, citing its role in sustaining a $75 billion annual trade surplus for the industry.

With a price target of $229.58 and an upside potential of 9.88%, GE Aerospace (NYSE:GE) is among billionaire Chris Hohn’s stock picks with huge upside potential. Backed by strong execution, expanding margins, and a high-growth end market, GE stands out as a top conviction holding for hedge fund portfolios focused on long-term capital gains.

Aristotle Atlantic Core Equity Strategy stated the following regarding GE Aerospace (NYSE:GE) in its Q4 2024 investor letter:

“GE Aerospace (NYSE:GE) designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. The industry has high entry barriers and is concentrated among few players. Despite its cyclical nature, the demand for travel is driven by global middle-class growth. Boeing and Airbus have long order books, ensuring steady demand for engines and spare parts. The company also benefits from high-margin services for existing aircraft fleets, with services accounting for 70% of its commercial engine business. GE Aerospace serves customers worldwide.

We see GE Aerospace making significant strides in its commercial engine business, which is expected to boost future services revenue growth. Over the past five years, the company has undergone substantial restructuring and simplification, including divesting its healthcare and energy businesses. The company now operates in three segments: Commercial Engines & Services (CES), Defense & Propulsion Technologies (DPT) and Insurance. Long-term revenue guidance is for high single-digit growth, and management has a goal of $10 billion in annual operating profit by 2028, with an expected 20% annual earnings growth. Following years of restructuring, we see GE Aerospace now positioned to return capital to shareholders through dividends and share repurchases.”

Overall, GE ranks 6th on our list of billionaire Chris Hohn’s stock picks with huge upside potential. While we acknowledge the potential of GE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.