Ariel Investments, an investment management company, released its “Ariel Global Fund” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the Ariel Global fund fell -3.12% underperforming the +2.87% return of its primary benchmark, the MSCI ACWI Index, and -0.59% 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 The Allstate Corporation (NYSE:ALL) in the second quarter 2024 investor letter. The Allstate Corporation (NYSE:ALL) is a property and casualty and other insurance products provider. The one-month return of The Allstate Corporation (NYSE:ALL) was 8.19%, and its shares gained 69.45% of their value over the last 52 weeks. On August 27, 2024, The Allstate Corporation (NYSE:ALL) stock closed at $185.14 per share with a market capitalization of $48.885 billion.
Ariel Global Fund stated the following regarding The Allstate Corporation (NYSE:ALL) in its Q2 2024 investor letter:
“We added property and casualty insurer, The Allstate Corporation (NYSE:ALL). A challenging macro-environment, inflation and lower reserve development led to significant underwriting losses across key markets, presenting us with an attractive entry point. Looking ahead, we expect the strong pricing environment, coupled with lower inflationary pressure and future premium growth to yield upside for shares. Additionally, management is committed to improving its adjusted expense ratio and recently made upgrades to its claims handling processes to minimize loss development and lower claim severities.”
Insurance house, car and family health live concept. The insurance agent presents the toys that symbolize the coverage.
The Allstate Corporation (NYSE:ALL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held The Allstate Corporation (NYSE:ALL) at the end of the second quarter which was 59 in the previous quarter. While we acknowledge the potential of The Allstate Corporation (NYSE:ALL) 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 The Allstate Corporation (NYSE:ALL) and shared the list of best insurance stocks to buy as homeowner’s insurance rates are skyrocketing. 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.
