Ariel Investments, an investment management company, released its “Ariel Small Cap Value Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. Even if uncertainty is high and volatility is expected to stay elevated in the market, the firm views these risks as short-term in the context of its long-term investment horizon. Ariel Small Cap Value Tax-Exempt Composite decreased -3.80% gross of fees (-4.04% net of fees) in the quarter, against this backdrop, lagging -3.64% and -3.28% returns of the Russell 2000 Value Index and the Russell 2000 Index, respectively. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Ariel Small Cap Value Strategy highlighted stocks like The Brink’s Company (NYSE:BCO) in the second quarter 2024 investor letter. The Brink’s Company (NYSE:BCO) offers secure transportation, cash management, and other security-related services. The one-month return of The Brink’s Company (NYSE:BCO) was -1.36%, and its shares gained 42.39% of their value over the last 52 weeks. On August 21, 2024, The Brink’s Company (NYSE:BCO) stock closed at $105.38 per share with a market capitalization of $4.651 billion.
Ariel Small Cap Value Strategy stated the following regarding The Brink’s Company (NYSE:BCO) in its Q2 2024 investor letter:
“Logistics and cash management services provider, The Brink’s Company (NYSE:BCO) traded higher following strong quarterly earnings results, highlighted by double-digit organic revenue growth and margin expansion. Fueling this performance was newer offerings in digital retail solutions and outsourced ATM services as well as continued execution of cost productivity initiatives. Meanwhile, BCO is returning capital to shareholders through both dividends and share repurchases.”
A security officer in front of a bank vault, representing the companies secure transportation services.
The Brink’s Company (NYSE:BCO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held The Brink’s Company (NYSE:BCO) at the end of the second quarter which was 23 in the previous quarter. In the second quarter The Brink’s Company (NYSE:BCO) delivered 14% organic revenue growth compared to Q2 2023. While we acknowledge the potential of The Brink’s Company (NYSE:BCO) 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 The Brink’s Company (NYSE:BCO) and shared Ariel Small Cap Value Strategy’s views on the company in the previous quarter. 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.
