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 Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) in the Q2 2023 investor letter. Headquartered in Miami, Florida, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a cruise company. On September 6, 2023, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) stock closed at $16.59 per share. One-month return of Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) was -7.68%, and its shares gained 16.18% of their value over the last 52 weeks. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) has a market capitalization of $7.058 billion.
Ariel Small Cap Value Strategy made the following comment about Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) in its Q2 2023 investor letter:
“Several stocks in the portfolio had strong returns over the period. Cruise ship operator, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH), delivered the second highest total return in the S&P 500 during the quarter. Robust consumer demand for travel experiences drove a top- and bottom-line earnings beat. The strong WAVE season is also translating to solid forward booking trends inclusive of increased occupancy capacity at higher pricing. Looking ahead, NCLH remains focused on right sizing its cost base and improving margins to strengthen its foundation for sustainable and profitable growth. Meanwhile, the company executed on its leadership succession plan, with 15-year veteran, Harry J. Sommer’s recent appointment to CEO. With an experienced management team at its helm, a young average fleet and solid liquidity position, we continue to believe the risk / reward remains sharply skewed to the upside.”
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) at the end of second quarter which was 29 in the previous quarter.
We discussed Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) in another article and shared Aristotle Global Equity Strategy’s views on the company in the previous quarter. 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.
