Should You Invest in GE Aerospace (GE)?

Rothschild & Co Wealth Management, an investment management company, released its LongRun Equity strategy first quarter 2025 investor letter. A copy of the letter can be downloaded here. The firm is a committed long-term business owner, focused on a portfolio of high-quality companies. The strategy declined 6.6% (in EUR, unhedged) in the first quarter compared to its benchmark, which fell 5.4%. The underperformance was due to a heavy decline in everything ‘technology’ related, while the consumer staples businesses contributed positively to the strategy’s performance.  In addition, you can check the top 5 holdings of the fund to know its best picks in 2025.

In its first-quarter 2025 investor letter, Rothschild & Co LongRun Equity 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 -2.44%, and its shares gained 50.15% of their value over the last 52 weeks. On July 2, 2025, GE Aerospace (NYSE:GE) stock closed at $244.75 per share, with a market capitalization of $260.999 billion.

Rothschild & Co LongRun Equity strategy stated the following regarding GE Aerospace (NYSE:GE) in its Q1 2025 investor letter:

"In the first quarter we made two new investments, building positions in semiconductor design software provider Cadence Design Systems and leading aerospace company GE Aerospace (NYSE:GE). No divestments were made, leaving the portfolio with 25 ownership stakes.

The crown jewel in GE Aerospace’s business portfolio is its commercial aircraft engines segment, accounting for around three quarters of sales and an even a higher proportion of earnings. GE dominates the narrowbody engine segment through its CFM International joint venture with Safran and controls around half of the widebody engine market on its own. The aircraft engine market is characterised by near insurmountable barriers to entry, punitive switching costs and a very large and profitable aftermarket from servicing the installed base of these engines. These factors combined afford GE with strong pricing power. We think GE is in an outstanding position to drive highly profitable growth over the next decades with visibility to match. We seized the opportunity from the recent pullback to build a position in a business with durable double digit growth and almost unparalleled visibility at just under 30x earnings."

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 Aerospace (NYSE: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. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered GE Aerospace (NYSE:GE) and shared the list of stocks Jim Cramer recently looked at. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. 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.

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