Ariel Investments, an investment management company, released its “Ariel Small/Mid Cap Value Fund” third-quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the fund fell -7.16% gross of fees, underperforming the Russell 2500 Value Index, which returned -4.50 %, and the Russell 2500 Index, which returned -2.82%. All the major indices closed at a loss in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Ariel Investment highlighted stocks like Royal Caribbean Cruises Ltd. (NYSE:RCL) in the Q3 2022 investor letter. Headquartered in Miami, Florida, Royal Caribbean Cruises Ltd. (NYSE:RCL) is a cruise company that operates worldwide. On December 2, 2022, Royal Caribbean Cruises Ltd. (NYSE:RCL) stock closed at $60.51 per share. One-month return of Royal Caribbean Cruises Ltd. (NYSE:RCL) was 16.62%, and its shares lost 16.36% of their value over the last 52 weeks. Royal Caribbean Cruises Ltd. (NYSE:RCL) has a market capitalization of $15.441 billion.
Ariel Investment made the following comment about Royal Caribbean Cruises Ltd. (NYSE:RCL) in its Q3 2022 investor letter:
“Global cruise vacation company Royal Caribbean Cruises Ltd. (NYSE:RCL) also aided relative performance in the quarter. With the entire fleet returning to service in June, RCL delivered positive EBITDA and operating cash flow for the first time since the pandemic began. Forward booking commentary is also encouraging with both trends and pricing for 2023 ahead of 2019 levels. Though questions persist around the macro backdrop, RCL has an experienced executive management team with operational expertise at its helm, as well as a healthy liquidity position. Over the long term, we believe the headwinds travel and leisure are experiencing will soften and expect RCL’s fundamentals will prove resilient in the face of adversity. At today’s valuation, RCL is currently trading at a nearly -60% discount to our estimate of private market value.”
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Royal Caribbean Cruises Ltd. (NYSE:RCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Royal Caribbean Cruises Ltd. (NYSE:RCL) at the end of the third quarter, which was 28 in the previous quarter.
We discussed Royal Caribbean Cruises Ltd. (NYSE:RCL) in another article and shared the top stock picks of billionaire Cliff Asness. In addition, please check out our hedge fund investor letters Q3 2022 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.
