Ariel Investments, an investment management company, released its “Ariel Focus Fund” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. While uncertainty is high and volatility is expected to remain elevated, the firm considers these risks as short-term disturbances within the scope of its long-term investment strategy. In the second quarter, the fund returned -3.37% and underperformed the -2.17% return for the Russell 1000 Value Index and the +4.28% return for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Ariel Focus Fund highlighted stocks like Affiliated Managers Group, Inc. (NYSE:AMG), in the second quarter 2024 investor letter. Affiliated Managers Group, Inc. (NYSE:AMG) is an investment management company that provides investment management services. The one-month return of Affiliated Managers Group, Inc. (NYSE:AMG) was -7.76%, and its shares gained 27.93% of their value over the last 52 weeks. On August 28, 2024, Affiliated Managers Group, Inc. (NYSE:AMG) stock closed at $171.21 per share with a market capitalization of $5.161 billion.
Ariel Focus Fund stated the following regarding Affiliated Managers Group, Inc. (NYSE:AMG) in its Q2 2024 investor letter:
“Also in the quarter, we initiated a new position in boutique asset manager, Affiliated Managers Group, Inc. (NYSE:AMG). AMG purchases meaningful equity interests in boutique asset management firms and in return receives a fixed percentage of revenues. The company’s partnership approach allows for its affiliates’ management teams to own significant equity stakes while maintaining operational independence. AMG’s size and scale allow the company to be the leading destination for growing boutique firms addressing succession issues and/or seeking assistance in marketing, distribution and product development. In our view, investors currently underappreciate the company’s active and alternative-asset affiliate business model.”
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Affiliated Managers Group, Inc. (NYSE:AMG) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Affiliated Managers Group, Inc. (NYSE:AMG) at the end of the second quarter which was 35 in the previous quarter. In the first half of 2024, Affiliated Managers Group, Inc. (NYSE:AMG) recorded economic earnings per share of $10.06, up 17% year-over-year. While we acknowledge the potential of Affiliated Managers Group, Inc. (NYSE:AMG) 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 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.
