Middle Coast Investing’s Added Air Lease (AL) After a Buy-Out Agreement. Here’s Why

Group 1: Middle Coast Investing Performance - Middle Coast Investing's collective portfolio outperformed the S&P 500 in Q3 2025, returning 9.6% compared to the S&P 500's 7.8% [1] - The Core U.S. portfolios returned 10%, while the Russell 2000 returned 12%, the S&P 600 returned 8.7%, and the Nasdaq generated 11.2% during the same period [1] - European Portfolios appreciated by 5.5% in Q3 2025 [1] Group 2: Air Lease Corporation (NYSE:AL) Overview - Air Lease Corporation (NYSE:AL) is an aircraft leasing company with a one-month return of 0.14% and a 52-week gain of 48.29% [2] - As of October 6, 2025, Air Lease Corporation's stock closed at $63.69 per share, with a market capitalization of $7.118 billion [2] Group 3: Investment Scenarios for Air Lease Corporation - Middle Coast Investing considers three scenarios for Air Lease Corporation: earning 3.2% in tax-advantaged accounts over 6-9 months, potential for a higher bid from another buyer, and the deal falling apart while still maintaining a cheap valuation [3] - The company is viewed as a smaller competitor to AerCap, which has agreed to a buyout [3] Group 4: Hedge Fund Interest and Financial Performance - Air Lease Corporation was held by 44 hedge fund portfolios at the end of Q2 2025, an increase from 37 in the previous quarter [4] - In Q2 2025, Air Lease reported revenues of $732 million and diluted earnings per share of $3.33 [4] - Despite the potential of Air Lease Corporation, certain AI stocks are believed to offer greater upside potential with less downside risk [4]