Ariel Investments, an investment management company, released its “Ariel Small Cap Value Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. Even if uncertainty is high and volatility is expected to stay elevated in the market, the firm views these risks as short-term in the context of its long-term investment horizon. Ariel Small Cap Value Tax-Exempt Composite decreased -3.80% gross of fees (-4.04% net of fees) in the quarter, against this backdrop, lagging -3.64% and -3.28% 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.
Ariel Small Cap Value Strategy highlighted stocks like OneSpaWorld Holdings Limited (NASDAQ:OSW), in the second quarter 2024 investor letter. 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 -7.69%, and its shares gained 36.65% of their value over the last 52 weeks. On August 21, 2024, OneSpaWorld Holdings Limited (NASDAQ:OSW) stock closed at $15.25 per share with a market capitalization of $1.597 billion.
Ariel Small Cap Value Strategy stated the following regarding OneSpaWorld Holdings Limited (NASDAQ:OSW) in its Q2 2024 investor letter:
“Several stocks in the portfolio had strong returns in the quarter. OneSpaWorld Holdings Limited (NASDAQ:OSW) is a provider of wellness services onboard cruise ships and destination resorts. Its shares advanced during the quarter following a top and bottom-line quarterly earnings beat and subsequent raise in full year guidance. Robust consumer demand, higher onboard spend levels and strong free cash flow generation all contributed to this performance. Additionally, management announced a new buyback program, meaningful debt reduction and a new cruise line contract. At today’s valuation, we continue to believe OSW’s risk/reward skews to the upside.”
A well-equipped wellness center with classes and health services.
OneSpaWorld Holdings Limited (NASDAQ:OSW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held OneSpaWorld Holdings Limited (NASDAQ:OSW) at the end of the second quarter which was 19 in the previous quarter. In the second quarter, OneSpaWorld Holdings Limited’s (NASDAQ:OSW) total revenues increased 12% to a record $224.9 million compared to $200.5 million in Q2 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 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.
