Ariel Investments, an investment management company, released its “Ariel Global Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. Despite significant volatility, global markets reported gains in the third quarter. The Ariel Global fund appreciated +6.94% in the quarter outperforming the +6.61% return of its primary benchmark, the MSCI ACWI Index, and trailing the +9.42% 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 Stellantis N.V. (NYSE:STLA) in the third quarter 2024 investor letter. Stellantis N.V. (NYSE:STLA) is a multinational automotive manufacturer. The one-month return of Stellantis N.V. (NYSE:STLA) was -1.95%, and its shares lost 35.20% of their value over the last 52 weeks. On November 19, 2024, Stellantis N.V. (NYSE:STLA) stock closed at $13.05 per share with a market capitalization of $38.254 billion.
Ariel Global Fund stated the following regarding Stellantis N.V. (NYSE:STLA) in its Q3 2024 investor letter:
“Lastly, shares of multinational automotive manufacturing company, Stellantis N.V. (NYSE:STLA) declined following a significant earnings miss. The company attributed the performance to lower sales, production disruptions from a product overhaul and weak performance in North America. Muted demand for electric vehicles in Europe also weighed on performance. In response, STLA is implementing operational improvement initiatives to bring down U.S. inventory levels through production cuts, consumer incentives and gradual price adjustments. Despite these results, management maintained its previous buyback and dividend commitments. Although we expect discounting to increase as U.S. inventory ages, we maintain a constructive view on the company. We believe STLA’s strong global footprint and commitment to industry leading profitability, operational excellence, and strategic foresight will continue to enhance long-term shareholder value.”
A close-up view of a modern automobile with its sleek curves and luxurious body.
Stellantis N.V. (NYSE:STLA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Stellantis N.V. (NYSE:STLA) at the end of the third quarter which was 31 in the previous quarter. While we acknowledge the potential of Stellantis N.V. (NYSE:STLA) 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 Stellantis N.V. (NYSE:STLA) and shared the list of oversold blue-chip stocks to buy. Stellantis N.V. (NYSE:STLA) detracted from Ariel Global Fund’s performance in the previous quarter due to higher interest rates and tapering demand. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.