Ariel Investments, an investment management company, released its “Ariel Small Cap Value Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. Global markets continued their upward trend in the second quarter, exceeding expectations. Meanwhile US economy continues to show signs of economic slowdown as tighter credit conditions weigh on consumers and business confidence. Against this backdrop, the fund advanced +5.19% gross of fees (+4.93% net of fees) in the second quarter, ahead of the Russell 2000 Value Index’s +3.18% gain and relatively in line with the Russell 2000 Index’s +5.21% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ariel Small Cap Value Strategy highlighted stocks like ADT Inc. (NYSE:ADT) in the second quarter 2023 investor letter. Headquartered in Boca Raton, Florida, ADT Inc. (NYSE:ADT) offers security, automation, and smart home solutions. On September 6, 2023, ADT Inc. (NYSE:ADT) stock closed at $6.02 per share. One-month return of ADT Inc. (NYSE:ADT) was -10.28%, and its shares lost 26.50% of their value over the last 52 weeks. ADT Inc. (NYSE:ADT) has a market capitalization of $5.546 billion.
Ariel Small Cap Value Strategy made the following comment about ADT Inc. (NYSE:ADT) in its Q2 2023 investor letter:
“Lastly, shares of leading provider of automated security solutions ADT Inc. (NYSE:ADT), declined following mixed earnings results. Solid momentum in the Commercial and Consumer Security business was offset by softness in the Solar segment due to operational challenges from changing panel suppliers and weaker sales. Management quickly took action by announcing the implementation of a new dealer program and investments in infrastructure to improve cycle time. While the risk /reward remains compelling, we think patience will be required as ADT works to turnaround the solar business. Longer-term, we believe ADT’s industry leading brand and national presence, coupled with its Google and State Farm strategic partnerships, position the company to be a prime beneficiary of growing demand for smart home technologies, including fully monitored residential security.”
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ADT Inc. (NYSE:ADT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held ADT Inc. (NYSE:ADT) at the end of second quarter which was 20 in the previous quarter.
We discussed ADT Inc. (NYSE:ADT) in another article and shared long-term returns of Keith Meister’s activist targets. In addition, please check out our hedge fund investor letters Q2 2023 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.
