Ariel Investments, an investment management company, released its “Ariel Focus Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Small cap issues fell in December due to uncertainty and slower Federal Reserve easing, but investors should focus on solid fundamentals as stock prices rise. In the fourth quarter, the fund declined -1.19%, compared to -1.98% return for the Russell 1000 Value Index and the +2.41% return for the S&P 500 Index. The fund increased +13.48%, over the trailing one-year period, compared to +14.37% and +25.02%, respectively, for the indexes. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Ariel Focus Fund emphasized stocks such as Schlumberger Limited (NYSE:SLB). Headquartered in Houston, Texas, Schlumberger Limited (NYSE:SLB) is an oil field services company. The one-month return of Schlumberger Limited (NYSE:SLB) was 3.74%, and its shares lost 15.70% of their value over the last 52 weeks. On February 28, 2025, Schlumberger Limited (NYSE:SLB) stock closed at $41.66 per share with a market capitalization of $56.65 billion.
Ariel Focus Fund stated the following regarding Schlumberger Limited (NYSE:SLB) in its Q4 2024 investor letter:
“Also in the quarter, we initiated a position in Schlumberger Limited (NYSE:SLB), the largest oilfield services company in the world by revenue. SLB provides equipment, services, and digital tools to help oil and gas producers operate more efficiently, including reservoir characterization, rig and well construction and production enhancement. We believe the company’s scale and technical expertise serves as a key differentiator. Weak near-term demand, an oil glut, falling commodity prices and concerns about future spending amid a global shift to renewable energies presented an attractive entry point. We believe there are tailwinds supporting rising demand over the medium-term, as national oil companies invest in long-cycle projects to grow capacity and address the natural decline of production. Additionally, we expect SLB will continue to evolve their capabilities to help clients with rising energy needs going forward.”
A drilling rig in action, operated by an oilfield services team.
Schlumberger Limited (NYSE:SLB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios held Schlumberger Limited (NYSE:SLB) at the end of the fourth quarter compared to 65 in the third quarter. While we acknowledge the potential of Schlumberger Limited (NYSE:SLB) 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 Schlumberger Limited (NYSE:SLB) and shared the list of best stocks to buy before spring. 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.