David Einhorn Long Aercap, Short GATX: Sohn New York Conference | Value Investing News

David Einhorn Long Aercap, Short GATX: Sohn New York Conference

  • • Companies that lease airplanes have better businesses than companies that lease railcars (long Aercap, short GATX)
  • o Airline leases are usually at least 10 years with a 25 year lifeo Railcar leases are 5 years when it’s new or less when it is used.
  • Recent leases are shorter termo Aercap trades at a 50% discount to GATX even though it’s a better business both on P/E and P/Bo Aercap is buying back stock.
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