Ariel Investments, an investment management company, released its “Ariel Global Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. Despite significant volatility, global markets reported gains in the third quarter. The Ariel Global fund appreciated +6.94% in the quarter outperforming the +6.61% return of its primary benchmark, the MSCI ACWI Index, and trailing the +9.42% return of its secondary benchmark, the MSCI ACWI Value Index. Ariel follows a non-consensus approach to identify undervalued, out-of-favor franchises that are misunderstood and mispriced. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Ariel Global Fund highlighted stocks like Western Alliance Bancorporation (NYSE:WAL) in the Q3 2024 investor letter. Western Alliance Bancorporation (NYSE:WAL) is a bank holding company for Western Alliance Bank that offers a wide range of banking products and related services. The one-month return of Western Alliance Bancorporation (NYSE:WAL) was 8.28%, and its shares gained 82.78% of their value over the last 52 weeks. On November 19, 2024, Western Alliance Bancorporation (NYSE:WAL) stock closed at $89.16 per share with a market capitalization of $9.814 billion.
Ariel Global Fund stated the following regarding Western Alliance Bancorporation (NYSE:WAL) in its Q3 2024 investor letter:
“Finally, we initiated a position in bank holding company, Western Alliance Bancorporation (NYSE:WAL). Shares have been impacted by multiple headwinds in recent years including a poorly timed expansion into mortgage services via the acquisition of AmeriHome in 2021, persistent credit concerns amidst the Fed’s rate hikes and then higher deposit costs following the March 2023 banking crisis. However, with a restructured balance sheet and diversified portfolio, we believe WAL is well-positioned for future growth in the current market environment.”
A Wall Street banker reviewing financial documents in their boardroom.
Western Alliance Bancorporation (NYSE:WAL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Western Alliance Bancorporation (NYSE:WAL) at the end of the third quarter which was 32 in the previous quarter. While we acknowledge the potential of Western Alliance Bancorporation (NYSE:WAL) 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 Western Alliance Bancorporation (NYSE:WAL) and shared the list of best mid cap value stocks to invest in. In addition, please check out our hedge fund investor letters Q3 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.