Ariel Investments, an investment management company, released its “Ariel Small Cap Value Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In 2024, mega-cap technology stocks, known as the “magnificent seven,” outperformed expectations. The bullish sentiment was driven by U.S. election results, strong earnings momentum, and a robust labor market. Ariel Small Cap Value Tax-Exempt Composite decreased -0.69% gross of fees (-0.83% net of fees) in the quarter, against this backdrop, compared to -1.06% and +0.33% returns of the Russell 2000 Value Index and the Russell 2000 Index, respectively. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
In its fourth quarter 2024 investor letter, Ariel Small Cap Value Strategy emphasized stocks such as OneSpaWorld Holdings Limited (NASDAQ:OSW). OneSpaWorld Holdings Limited (NASDAQ:OSW) operates health and wellness centers onboard cruise ships and at destination resorts. The one-month return of OneSpaWorld Holdings Limited (NASDAQ:OSW) was -10.04%, and its shares gained 47.34% of their value over the last 52 weeks. On February 28, 2025, OneSpaWorld Holdings Limited (NASDAQ:OSW) stock closed at $19.08 per share with a market capitalization of $1.997 billion.
Ariel Small Cap Value Strategy stated the following regarding OneSpaWorld Holdings Limited (NASDAQ:OSW) in its Q4 2024 investor letter:
“Provider of wellness services onboard cruise ships and destination resorts,OneSpaWorld Holdings Limited (NASDAQ:OSW), also traded higher as strong consumer trends drove another significant earnings beat and subsequent raise in full year guidance. Meanwhile, management strengthened the balance sheet by paying down and restructuring its expensive first lien term loan as well as ramped up capital returns to shareholders through buybacks and dividends.”
A well-equipped wellness center with classes and health services.
OneSpaWorld Holdings Limited (NASDAQ:OSW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held OneSpaWorld Holdings Limited (NASDAQ:OSW) at the end of the fourth quarter compared to 25 in the third quarter. OneSpaWorld Holdings Limited (NASDAQ:OSW) fourth quarter revenue increased 11% to $217.2 million compared to $194.8 million in Q4 2023. While we acknowledge the potential of OneSpaWorld Holdings Limited (NASDAQ:OSW) 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 OneSpaWorld Holdings Limited (NASDAQ:OSW) and shared Ariel Small Cap Value Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.