Ariel Investments, an investment management company, released its “Ariel Small Cap Value Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. Investors’ optimism for another year of U.S. outperformance, fueled by economic momentum and the new administration’s pro-business stance, was overshadowed by tariff fears and policy uncertainty. In the quarter, Ariel Small Cap Value Tax-Exempt Composite decreased -10.60% gross of fees (-10.73% net of fees), against this backdrop, compared to -7.74% and -9.48% returns of the Russell 2000 Value Index and the Russell 2000 Index, respectively. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, Ariel Small Cap Value Strategy highlighted stocks such as Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND). Headquartered in New York, New York, Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) is an adventure travel services company. The one-month return of Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) was 6.85%, and its shares gained 54.39% of their value over the last 52 weeks. On June 16, 2025, Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) stock closed at $11.07 per share, with a market capitalization of $605.616 million.
Ariel Small Cap Value Strategy stated the following regarding Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) in its Q1 2025 investor letter:
“Lastly, shares of luxury adventure travel services company, Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND), declined over the period on concerns consumer discretionary spending will soften alongside the deterioration in sentiment. Uncertainty surrounding a new management team and the company’s leverage heading into a potential economic slowdown also weighed on shares. Nonetheless, demand for LIND’s cruise and land-based experience businesses remains brisk, with occupancy and net yield growth meaningfully ahead of consensus estimates. While the new management team’s initial 2025 guidance underwhelmed investors, the company is investing to improve occupancy and margins. With a strengthened Disney/National Geographic relationship, expanded fleet capacity and the increased scale of its branded portfolio, we believe the company is well-positioned for multiple expansion over the long-term.”
A fleet of Expedition Cruising ships moored at a harbor in a picturesque landscape.
Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) at the end of the first quarter, which was 27 in the previous quarter. Lindblad Expeditions Holdings, Inc.’s (NASDAQ:LIND) first quarter revenue increased 17% year-over-year to $180 million. While we acknowledge the potential of Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) 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 undervalued AI stock set for massive gains.
In another article, we covered Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) and shared the list of best cruise stocks to buy according to hedge funds. Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) detracted from Ariel Small Cap Value Strategy’s performance in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of LIND as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
