CA - AerCap Holdings: Flying Below The Radar Of Most Investors

2024-07-11 08:20:00 ET

Summary

• L1 Capital added AerCap Holdings to its portfolio, with AERentering the  top ten Fund holdings.
• Aircraft leasing is a well-established, but highly specialised niche of the secured asset lending industry.
• While AerCap is by far and away the largest participant in the aircraft leasing industry, we believe it is flying below the radar of most investors.

The following segment was excerpted from this fund letter.

AerCap Holdings N.V. ( AER )

Introduction

Every time you catch a flight, you probably don't spend a huge amount of time thinking about whether the plane you are sitting in was bought or leased by the airline. Yet this is an important decision for the airline management team. Aircraft leasing is a well-established, but highly specialised niche of the secured asset lending industry. There are a wide range of aircraft leasing capital providers, but publicly traded aircraft lessors are limited, and the sector is not well known outside of the industry. While AerCap is by far and away the largest participant in the aircraft leasing industry, we believe it is flying below the radar of most investors....

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