Should You Be Confident in FTAI Aviation (FTAI)?
Crossroads Capital LLC, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund rose 2.7% net of fees and expenses in Q4 2025, bringing its annual return to 37.7% net. Since its inception, the Fund compounded at the rate of 21.2% gross and 17.1% net. By the end of December 2025, the Fund's overall non-delta adjusted gross and net exposure were recorded at 89.7% and 72.1%, respectively. After a strong Q3, November revealed how rapidly market sentiment can shift due to AI bubble concerns, Federal Reserve uncertainty, and increasingly bearish positioning. Q4 revealed the market's increasingly volatile nature while also demonstrating reflexivity rather than avoiding it. The firm remains cautiously optimistic that the positive trend in market breadth and a growing interest in small-cap stocks will carry into 2026, giving it a much-needed boost that Crossroads has long anticipated. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Crossroads Capital highlighted stocks like FTAI Aviation Ltd. (NASDAQ:FTAI). FTAI Aviation Ltd. (NASDAQ:FTAI) is an aviation company that owns, acquires, and sells aviation equipment for the transportation of goods and people. On February 27, 2026, FTAI Aviation Ltd. (NASDAQ:FTAI) stock closed at $305.80 per share. One-month return of FTAI Aviation Ltd. (NASDAQ:FTAI) was 11.45%, and its shares gained 157.82% over the past 52 weeks. FTAI Aviation Ltd. (NASDAQ:FTAI) has a market capitalization of $31.367 billion.
Crossroads Capital stated the following regarding FTAI Aviation Ltd. (NASDAQ:FTAI) in its fourth quarter 2025 investor letter:
"FTAI Aviation Ltd. (NASDAQ:FTAI) is a leading MRO franchise for the CFM56 and is in the midst of transforming into a capital-light, high-visibility model with its Strategic Capital Initiative (SCI), protected by an irreplaceable competitive advantage in PMA parts. And yet, the market has continued to value the company as a cyclical lessor despite clear operating leverage and a qualitative shift toward a more scalable, capital-efficient industrial model. That perception began to change in Q4.
As a reminder, FTAI captures the best economics in aftermarket aviation not by passively leasing engines, but by operating a vertically integrated platform (Module Factory + SCI) that manufactures “green time” at a structurally lower cost than OEM pathways. “Green time” is simply the remaining usable life on an engine or component before major maintenance; FTAI creates it by tearing down older engines and rebuilding them with proprietary PMA parts and USM into serviceable modules (fan/core/LPT) that can be swapped in days rather than waiting months for shop visits. The result is meaningfully higher aircraft and engine uptime for customers in a supply-constrained market and high-margin Aerospace Products revenue layered on top of leasing, with an increasingly durable flywheel as scale and parts availability compound…”
FTAI Aviation Ltd. (NASDAQ:FTAI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 56 hedge fund portfolios held FTAI Aviation Ltd. (NASDAQ:FTAI) at the end of the fourth quarter, up from 51 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 a list of high-growth industrial stocks to buy. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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