Baron Capital disclosed in its Q2 2026 investor letter that its Baron Financials ETF has initiated a position in AerCap Holdings N.V. (NYSE:AER), the world's largest aircraft leasing company. The fund views AerCap as an "AI-immune business" with stable growth, an excellent management team, and an undervalued stock. AerCap benefits from the long-term global growth trend in air travel, as well as tight aircraft supply and engine shortages due to Boeing's and Airbus's decade-long order backlogs. Its aircraft utilization rate exceeds 99%, and its lease renewal rate is 87%.