Heico Corporation (Hei) rose after reporting strong Q1 results

Fred Alger ManagementAn investment management company, has released its “Alger Spectra Fund” first quarter of 2025 Investor letter. Can be a copy of the letter Downloaded here. In the first quarter, changing trade, monetary and tax policy created increased volatility in US shares. The introduction of advanced artificial intelligence (AI) models from China was a further source of uncertainty. Against this background, the class A shares of the fund behind the Russell 3000 Growth Index performed in the quarter. In addition, check the top five of the top five of the fund to know its best choices in 2025.

In the first quarter of 2025 investor letter, Alger Spectra Fund emphasized shares such as Heico Corporation (NYSE:Hay). Heico Corporation (NYSE: HEI) is concerned with the design and production of space travel, defense and electronically related products and services. The return of one month from Heico Corporation (NYSE: HEI) was -5.12% and the shares achieved 27.03% of their value in the past 52 weeks. On April 15, 2025, Heico Corporation (NYSE: HEI) closed shares at $ 250.94 per share with a market capitalization of $ 30.663 billion.

Alger Spectra Fund stated the following with regard to Heico Corporation (NYSE: HEI) in the investor letter of Q1 2025:

“Heico Corporation (NYSE: Hei) is a leading manufacturer of Federal Aviation Administration (FAA) Approved Jet engine and replacement parts of aircraft components. The Flight Support Group (FSG) offers FAA approved parts for aircraft and motorcycle replacement, while the Electronics Technologies Group (ETG) operates industries such as space travel, defense, domestic safety, space and medical with specialized electronic components. We believe that the company is well positioned to take advantage of the steady aging of the global commercial space fleet, resulting in an increased consumption of aftermarket parts. In addition, continuous production problems of two large aircraft manufacturers have reduced the expected new aircraft deliveries, which is further supported that the average age of the global fleet will probably be increased in the coming years. During the quarter, shares contributed positively to the performance after the company had reported strong tax results of the first quarter, powered by continuous strength in the FSG segment because commercial flight hours remained robust. In addition, management emphasized a recovery within the ETG segment, supported by an increased demand from the US Department of Defense. “

A fighter jet in formation, who reveals the bravery of the defense arm of the companies.

Heico Corporation (NYSE: HEI) is not on our list of 30 most popular shares among hedge funds. According to our database, 67 hedge funds portfolios held Heico Corporation (NYSE: HEI) at the end of the fourth quarter that was 57 in the previous quarter. Although we recognize the potential of Heico Corporation (NYSE: HEI) as an investment, our conviction is believing that AI shares have a greater promise for delivering a higher return and doing this within a shorter timetable. If you are looking for an AI share that is just as promising as Nvidia, but that acts with less than 5 times the income, view our report on the Cheapest AI stock.