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 JD.com, Inc. (NASDAQ:JD) in the Q3 2024 investor letter. JD.com, Inc. (NASDAQ:JD) is a supply chain-based technology and service provider. The one-month return of JD.com, Inc. (NASDAQ:JD) was -12.03%, and its shares gained 24.30% of their value over the last 52 weeks. On November 19, 2024, JD.com, Inc. (NASDAQ:JD) stock closed at $35.19 per share with a market capitalization of $56.796 billion.
Ariel Global Fund stated the following regarding JD.com, Inc. (NASDAQ:JD) in its Q3 2024 investor letter:
“China-based E-commerce company, JD.com, Inc. (NASDAQ:JD) was the top contributor in the quarter as the People’s Bank of China’s (PBOC) comprehensive stimulus measures bolstered investor confidence in the Chinese economy. The improving economic sentiment is fueling consumer spending which benefits the company’s retail operations. Additionally, the company’s strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams has contributed to consecutive quarterly earnings beats. JD.com is also poised to capitalize on the home appliance trade-in program, which is one of its largest product categories. Given the favorable market environment, the company’s strategic positioning and supply chain efficiency improvements, we continue to like its long-term growth prospects.”
A wide and imposing view of a supply chain distribution center, illustrating the company’s technology capabilities.
JD.com, Inc. (NASDAQ:JD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held JD.com, Inc. (NASDAQ:JD) at the end of the third quarter which was 53 in the previous quarter. While we acknowledge the potential of JD.com, Inc. (NASDAQ:JD) 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 JD.com, Inc. (NASDAQ:JD) and shared the list of cheap Chinese stocks to buy according to hedge funds. 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.