Ariel Investments, an investment management company, released its “Ariel Small Cap Value Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2024, US indexes continued to exceed expectations. This rally was fueled by excitement surrounding artificial intelligence (AI), robust corporate earnings growth, declining inflation, and expectations for interest rate cuts. In this backdrop, Ariel Small Cap Value Tax-Exempt Composite rose +3.97% gross of fees (+3.71% net of fees) and outperformed the +2.90% return of the Russell 2000 Value Index but fell short of the +5.18% gain of the growthier Russell 2000 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Ariel Small Cap Value Strategy highlighted stocks like Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND), in the first quarter 2024 investor letter. Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) offers marine expedition adventures and travel experiences. HDFC Bank Limited’s (NYSE:HDB) one-month return was 9.66%, and its shares lost 18.59% of their value over the last 52 weeks. On June 5, 2024, Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) stock closed at $8.06 per share with a market capitalization of $431.477 million.
Ariel Small Cap Value Strategy stated the following regarding Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) in its first quarter 2024 investor letter:
“In contrast, shares of luxury adventure travel services company, Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) traded sharply lower in the quarter on an earnings miss and cautious full year 2024 outlook, as geopolitical headwinds negatively impact travel itineraries. Importantly, LIND continues to deliver positive performance within its land-based segment, while management remains disciplined in not sacrificing long-term pricing for sea-based voyages to stimulate near-term demand. Looking ahead, we believe LIND’s stable land-based segment will continue to anchor the company’s profitability. We also expect the enhancement of its strategic relationship with Disney/National Geographic to provide a meaningful tailwind for multiple expansion as the company extends its market share in the expedition tourism niche.”
A fleet of Expedition Cruising ships moored at a harbor in a picturesque landscape.
Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) at the end of the first quarter which was 14 in the previous quarter. The first quarter revenue of Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) was $154 million, up 7% year over year. While we acknowledge the potential of Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) 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 Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) and shared Anchor Capital Management’s top stock picks in 2024. In addition, please check out our hedge fund investor letters Q1 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.
