Ariel Investments, an investment management company, released its “Ariel Focus Fund” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. While uncertainty is high and volatility is expected to remain elevated, the firm considers these risks as short-term disturbances within the scope of its long-term investment strategy. In the second quarter, the fund returned -3.37% and underperformed the -2.17% return for the Russell 1000 Value Index and the +4.28% return for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Ariel Focus Fund highlighted stocks like Mohawk Industries, Inc. (NYSE:MHK), in the second quarter 2024 investor letter. Mohawk Industries, Inc. (NYSE:MHK) designs and manufactures flooring products. The one-month return of Mohawk Industries, Inc. (NYSE:MHK) was -4.05%, and its shares gained 53.48% of their value over the last 52 weeks. On August 28, 2024, Mohawk Industries, Inc. (NYSE:MHK) stock closed at $154.54 per share with a market capitalization of $9.754 billion.
Ariel Focus Fund stated the following regarding Mohawk Industries, Inc. (NYSE:MHK) in its Q2 2024 investor letter:
“In contrast, manufacturer and distributor of floorcovering products, Mohawk Industries, Inc. (NYSE:MHK) underperformed this quarter, as consumer demand and pricing remain under pressure due to secular headwinds in the housing market. In a difficult environment, management is successfully executing on cost savings and productivity initiatives, while also preparing the business for share gains as demand recovers. In our view, MHK’s healthy balance sheet and progress managing through economic cycles position the company to benefit from long-term growth in residential remodeling, new home construction and commercial projects.”
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Mohawk Industries, Inc. (NYSE:MHK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Mohawk Industries, Inc. (NYSE:MHK) at the end of the second quarter which was 41 in the previous quarter. Mohawk Industries, Inc. (NYSE:MHK) reported $2.8 billion in net sales for the second quarter, down 5.1% compared to Q2 2023. While we acknowledge the potential of Mohawk Industries, Inc. (NYSE:MHK) 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 Mohawk Industries, Inc. (NYSE:MHK) and shared the list of best land and timber stocks to buy according to hedge funds. Mohawk Industries, Inc. (NYSE:MHK) contributed to the performance of Ariel Fund 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.
