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 Core Laboratories Inc. (NYSE:CLB), in the second quarter 2024 investor letter. Core Laboratories Inc. (NYSE:CLB) provides reservoir description and enhancement services and products to the energy industry. The one-month return of Core Laboratories Inc. (NYSE:CLB) was -24.56%, and its shares lost 22.23% of their value over the last 52 weeks. On August 21, 2024, Core Laboratories Inc. (NYSE:CLB) stock closed at $18.37 per share with a market capitalization of $861.792 million.
Ariel Small Cap Value Strategy stated the following regarding Core Laboratories Inc. (NYSE:CLB) in its Q2 2024 investor letter:
“Additionally, shares of oil services company, Core Laboratories Inc. (NYSE:CLB), increased following a top- and bottom-line earnings beat. Strong international demand for laboratory services and completion diagnostic solutions boosted results. Although the macro environment remains volatile and U.S. onshore drilling and completion activity is expected to remain flat year-over-year, management is projecting international growth from projects in the Middle East, Asia Pacific and West Africa. Meanwhile, the company remains laser focused on generating positive free cash flow, reducing debt and improving its return on invested capital.”
A drilling rig manned by engineers and oil field workers preparing to explore a new petroleum reservoir.
Core Laboratories Inc. (NYSE:CLB) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Core Laboratories Inc. (NYSE:CLB) at the end of the second quarter which was 15 in the previous quarter. The second-quarter revenue of Core Laboratories Inc. (NYSE:CLB) was $130.6 million compared to $129.6 million in Q1 2024 and $127.9 million in Q2 2023. While we acknowledge the potential of Core Laboratories Inc. (NYSE:CLB) 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 Core Laboratories Inc. (NYSE:CLB) and shared Ariel Focus Fund’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.
