Ariel Investments, an investment management company, released its “Ariel Global Fund” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the Ariel Global fund fell -3.12% underperforming the +2.87% return of its primary benchmark, the MSCI ACWI Index, and -0.59% return of its secondary benchmark, the MSCI ACWI Value Index. Ariel follows a non-consensus approach to identify undervalued, out-of-favor franchises that are misunderstood and mispriced. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Ariel Global Fund highlighted stocks like D.R. Horton, Inc. (NYSE:DHI) in the second quarter 2024 investor letter. D.R. Horton, Inc. (NYSE:DHI) is a homebuilding company headquartered in Arlington, Texas. The one-month return of D.R. Horton, Inc. (NYSE:DHI) was 4.23%, and its shares gained 57.60% of their value over the last 52 weeks. On August 27, 2024, D.R. Horton, Inc. (NYSE:DHI) stock closed at $187.54 per share with a market capitalization of $61.108 billion.
Ariel Global Fund stated the following regarding D.R. Horton, Inc. (NYSE:DHI) in its Q2 2024 investor letter:
“We also added positions in two of the largest homebuilders in the U.S., D.R. Horton, Inc. (NYSE:DHI) and Lennar Corporation. We think the U.S. housing market will continue to experience healthy demand due to substantial supply shortages resulting from a lack of construction following the global financial crisis. Against this favorable backdrop, we believe both companies are well-positioned to capitalize on recent affordability issues driven by rising housing prices, with their entry level, single-family-focused business models.”
A construction site of a multi-family residential complex, a modern urban skyline in the background.
D.R. Horton, Inc. (NYSE:DHI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held D.R. Horton, Inc. (NYSE:DHI) at the end of the second quarter which was 65 in the previous quarter. D.R. Horton, Inc.’s (NYSE:DHI) consolidated pre-tax income rose 1% to $1.8 billion in the second quarter, accompanied by a 2% growth in revenues to $10 billion, and a pre-tax profit margin of 18.1%.While we acknowledge the potential of D.R. Horton, Inc. (NYSE:DHI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed D.R. Horton, Inc. (NYSE:DHI) and shared the list of stocks whose price targets were recently trimmed by analysts. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
