Ariel Investments, an investment management company, released its “Ariel Small Cap Value Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2024, US indexes continued to exceed expectations. This rally was fueled by excitement surrounding artificial intelligence (AI), robust corporate earnings growth, declining inflation, and expectations for interest rate cuts. In this backdrop, Ariel Small Cap Value Tax-Exempt Composite rose +3.97% gross of fees (+3.71% net of fees) and outperformed the +2.90% return of the Russell 2000 Value Index but fell short of the +5.18% gain of the growthier Russell 2000 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Ariel Small Cap Value Strategy highlighted stocks like OneSpaWorld Holdings Limited (NASDAQ:OSW), in the first quarter 2024 investor letter. OneSpaWorld Holdings Limited (NASDAQ:OSW) operates health and wellness centers onboard cruise ships and at destination resorts. OneSpaWorld Holdings Limited’s (NASDAQ:OSW) one-month return was 6.33%, and its shares gained 44.47% of their value over the last 52 weeks. On June 5, 2024, OneSpaWorld Holdings Limited (NASDAQ:OSW) stock closed at $15.95 per share with a market capitalization of $ 1.67 billion.
Ariel Small Cap Value Strategy stated the following regarding OneSpaWorld Holdings Limited (NASDAQ:OSW) in its first quarter 2024 investor letter:
“Additionally, OneSpaWorld Holdings Limited (NASDAQ:OSW), a provider of wellness services onboard cruise ships and destination resorts, declined over the period. This recent price action runs counter to the company’s strong fundamentals. OSW delivered compelling quarterly earnings results, highlighted by robust consumer demand, solid onboard spend levels, strong free cash flow generation and capital returns to shareholders via buybacks. Management also reiterated its expectations for a strong 2024 Wave Season. At today’s valuation, we believe OSW’s risk/reward is skewed sharply 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, 19 hedge fund portfolios held OneSpaWorld Holdings Limited (NASDAQ:OSW) at the end of the first quarter which was 19 in the previous quarter. OSW’s total revenue increased by 16% in the first quarter, from $182.5 million in the first quarter of 2023 to $211.2 million. 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.
OneSpaWorld Holdings Limited (NASDAQ:OSW) was a top contributor of Ariel Small Cap Value Strategy in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.
