Ariel Investments, an investment management company, released its “Ariel Global Fund” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the Ariel Global fund appreciated +7.35% lagging behind the +8.20% gain of its primary benchmark, the MSCI ACWI Index, but ahead of the +6.85% return of its secondary benchmark, the MSCI ACWI Value Index. The upward rally of developed markets continued in the first quarter of 2024. The rally was driven by investors’ excitement over artificial intelligence (AI), a rebound in bank lending growth, decreased energy costs, a rise in global manufacturing activity, recent structural reforms in Japan, and the near-term possibility of a rate-cutting cycle in the U.S. and Europe. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Ariel Global Fund highlighted stocks like JD.com, Inc. (NASDAQ:JD), in the first quarter 2024 investor letter. JD.com, Inc. (NASDAQ:JD) is a supply chain-based technology and service provider. The one-month return of JD.com, Inc. (NASDAQ:JD) was -14.21%, and its shares lost 26.43% of their value over the last 52 weeks. On June 13, 2024, JD.com, Inc. (NASDAQ:JD) stock closed at $29.40 per share with a market capitalization of $45.465 billion.
Ariel Global Fund stated the following regarding JD.com, Inc. (NASDAQ:JD) in its first quarter 2024 investor letter:
“We initiated a position in China-based technology-driven E-commerce company, JD.com, Inc. (NASDAQ:JD). The brand has long been known across the region as a superior online shopping channel due to its unique first-party model and unparalleled fulfillment service underpinned by JD Logistics. Yet, a challenging macro environment drove shares lower as shoppers began seeking bargains. In response, the company made significant investments in elevating its third-party merchant platform to enhance its variety of product offerings and price competitiveness for consumers. We believe these actions will yield an improved product mix, stronger top-line growth and margin expansion on a go-forward basis.”
A wide and imposing view of a supply chain distribution center, illustrating the company’s technology capabilities.
JD.com, Inc. (NASDAQ:JD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held JD.com, Inc. (NASDAQ:JD) at the end of the first quarter which was 56 in the previous quarter. In the first quarter, JD.com, Inc. (NASDAQ:JD) delivered RMB260 billion in revenues, an increase of 7% year-on-year. While we acknowledge the potential of JD.com, Inc. (NASDAQ:JD) 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 JD.com, Inc. (NASDAQ:JD) and shared the list of best affordable stocks under $40. In addition, please check out our hedge fund investor letters Q1 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.
