Ariel Investments, an investment management company, released its “Ariel Fund” first-quarter 2024 investor letter. A copy of the same can be downloaded here. US equities exceeded expectations in the first quarter of 2024. The market was driven by optimism and strong market sentiment. The fund appreciated +6.41% in the quarter against this backdrop, outperforming the Russell 2500 Value Index’s +6.07% gain however, slightly trailing the Russell 2500 Index’s +6.92% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Ariel Fund highlighted stocks like Adtalem Global Education Inc. (NYSE:ATGE), in the first 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 1.81%, and its shares gained 57.31% of their value over the last 52 weeks. On June 6, 2024, Adtalem Global Education Inc. (NYSE:ATGE) stock closed at $65.97 per share with a market capitalization of $2.481 billion.
Ariel Fund stated the following regarding Adtalem Global Education Inc. (NYSE:ATGE) in its first quarter 2024 investor letter:
“Shares of global leader in for-profit education, Adtalem Global Education Inc. (NYSE:ATGE), tumbled when the publication of a short report accusing the company of being at risk of losing some federal funding was picked up by a major news outlet. Management moved up its earnings release to publicly address the “inaccuracies and misleading conclusions,” noting there is “no existential threat” to the business or federal funding. Meanwhile, the fundamentals of the business remain robust, underscored by a top-and bottom-line earnings beat, significant margin expansion and an acceleration in new student enrollment growth. 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. 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. The total enrolment fee of Adtalem Global Education Inc. (NYSE:ATGE) rose by 7.8% in the quarter, resulting in $413 million in revenue, up 11.8% compared to the prior year. 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 the previous quarter, Adtalem Global Education Inc. (NYSE:ATGE) achieved top and bottom-line earnings beats as mentioned in the Ariel Fund’s Q4 2023 quarterly letter. 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.
