Ariel Investments, an investment management company, released its “Ariel Fund” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. Due to investor excitement for stocks with an artificial intelligence (AI) theme, the bull market surged through the second quarter. The S&P 500 edged a small gain despite the loss in Mid- and Small-Cap stocks because of this narrow, momentum-driven rally. The fund decreased -5.64% in the quarter against this backdrop, underperforming the Russell 2500 Value Index’s -4.31% and the Russell 2500 Index’s -4.27% return. For more information on the fund’s top picks in 2024, please check its top five holdings.
Ariel Fund highlighted stocks like Adtalem Global Education Inc. (NYSE:ATGE), in the second quarter 2024 investor letter. Adtalem Global Education Inc. (NYSE:ATGE) offers workforce solutions. The one-month return of Adtalem Global Education Inc. (NYSE:ATGE) was 10.42%, and its shares gained 67.55% of their value over the last 52 weeks. On August 6, 2024, Adtalem Global Education Inc. (NYSE:ATGE) stock closed at $74.71 per share with a market capitalization of $2.81 billion.
Ariel Fund stated the following regarding Adtalem Global Education Inc. (NYSE:ATGE) in its Q2 2024 investor letter:
“Some holdings in the portfolio advanced considerably this quarter. Shares of global leader in for-profit education, Adtalem Global Education Inc. (NYSE:ATGE), jumped following a robust quarterly earnings beat, accelerating new student enrollment growth and a subsequent raise in full year guidance. Revenue per student also came in better than expected on tuition increases and higher credit hours. Meanwhile, we remain encouraged by management’s solid execution of remediation initiatives at the medical and veterinary schools, where revenue growth outperformed and total enrollment trends are improving. As the number one grantor of nursing degrees in the U.S. and the largest producer of African American MDs, PhDs and nurses in the country, we remain confident ATGE will benefit from the healthcare worker shortage in the U.S.”
A group of students in a lecture hall, with a professor lecturing to them in the forefront.
Adtalem Global Education Inc. (NYSE:ATGE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. A As per our database, 22 hedge fund portfolios held Adtalem Global Education Inc. (NYSE:ATGE) at the end of the first quarter which was 22 in the previous quarter. Revenue for Adtalem Global Education Inc. (NYSE:ATGE) increased by 11.8% to $413 million during the quarter due to an increase in the company’s overall enrolment fee, which increased by 7.8%. While we acknowledge the potential of Adtalem Global Education Inc. (NYSE:ATGE) 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 Adtalem Global Education Inc. (NYSE:ATGE) and shared TimesSquare Capital U.S. Small Cap Growth Strategy’s views on the company. In its Q1 2024 investor letter, Ariel Fund addressed that Adtalem Global Education Inc. (NYSE:ATGE) fell in the quarter following a short report implying the company would lose federal funding. 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.
