Ariel Investments, an investment management company, released its “Ariel Appreciation Fund” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. The Ariel Appreciation fund increased +4.06% in the quarter, trailing the +8.23% and +8.60% returns of the Russell Midcap Value and Russell Midcap indices. Except for real estate, all sectors in the S&P 500 saw increases, even though momentum was the main factor influencing performance across size and style. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Ariel Appreciation Fund highlighted stocks like Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in the first quarter 2024 investor letter. Walgreens Boots Alliance, Inc. (NASDAQ:WBA) healthcare, pharmacy, and retail company. The one-month return of Walgreens Boots Alliance, Inc. (NASDAQ:WBA) was -15.76%, and its shares lost 51.75% of their value over the last 52 weeks. On June 13, 2024, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) stock closed at $15.45 per share with a market capitalization of $13.329 billion.
Ariel Appreciation Fund stated the following regarding Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its first quarter 2024 investor letter:
“Alternatively, several positions weighed on performance. Shares of retail drugstore operator, Walgreens Boots Alliance, Inc. (NASDAQ:WBA), declined over the period as challenging consumer and macroeconomic conditions, ongoing operational issues and a significant cut in the dividend weighed on shares. To address these performance lows, WBA’s new CEO is rebuilding the company’s management team with leaders who have significant experience in healthcare services. Meanwhile, WBA continues to execute on its cost savings initiatives to optimize profitability and is using excess capital to prioritize the sustainability of its operations and balance sheet. Over the medium-term, we expect a re-rating in shares as the new executive team earns credibility, margins and free cash flow show signs of improvement and the company deleverages. WBA shares are currently trading at a significant discount to our estimate of private market value.”
A pharmacist discussing the health benefits of a prescription medication with a customer.
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Walgreens Boots Alliance, Inc. (NASDAQ:WBA) at the end of the first quarter which was 31 in the previous quarter. While we acknowledge the potential of Walgreens Boots Alliance, Inc. (NASDAQ:WBA) 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 Walgreens Boots Alliance, Inc. (NASDAQ:WBA) and shared the list of stocks democrats and corporate insiders are buying. 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.
