Oakmark Funds, which receives advisory services from Harris Associates, has published its investor letter for the fourth quarter of 2025. The fund aims for capital appreciation through investments in a range of large U.S. companies. For the quarter, the fund's investor class posted a return of 4.78%. This performance exceeded the 2.66% return of the S&P 500 Index during the same period.
In the letter, the fund discussed its position in AerCap Holdings N.V., traded on the NYSE under the symbol AER. AerCap Holdings is involved in leasing, financing, selling, and managing flight equipment. On January 13, 2026, the company's stock closed at $144.28 per share. Over the past month, the stock returned 2.36%. Its value has increased by 49.13% over the last 52 weeks. AerCap Holdings currently has a market capitalization of $25.727 billion.
The fund provided commentary on AerCap Holdings in the quarterly letter. It described the company as the world's largest aircraft lessor. The fund stated that the aircraft leasing market benefits from long-term growth in global travel demand. According to the letter, AerCap's scale allows it to achieve a higher return on equity than its competitors. The fund also pointed to management's focus on returns in both organic and acquisition-driven growth as a factor in the company's strong performance.
The letter noted that the fund began purchasing AerCap shares at a price slightly above book value or at a single-digit price-to-earnings multiple. The fund finds this valuation appealing, citing the company's history of generating returns on equity in the low-to-mid teens and what it sees as sustainable competitive advantages. Furthermore, the letter suggested that the book value of AerCap's portfolio may be understated due to significant increases in the value of aircraft and engines in recent years.
According to a database cited in the report, 55 hedge fund portfolios held AerCap Holdings at the end of the third quarter. This figure was down from 63 portfolios in the previous quarter. The report mentioned that AerCap Holdings is not included on a specific list of 30 stocks popular among hedge funds.