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Ariel Investments, an investment management company, released its “Ariel Small Cap Value Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In 2024, mega-cap technology stocks, known as the "magnificent seven," outperformed expectations. The bullish sentiment was driven by U.S. election results, strong earnings momentum, and a robust labor market. Ariel Small Cap Value Tax-Exempt Composite decreased -0.69% gross of fees (-0.83% net of fees) in the quarter, against this backdrop, compared to -1.06% and +0.33% 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 2024.
In its fourth quarter 2024 investor letter, Ariel Small Cap Value Strategy emphasized stocks such as Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND). Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) offers marine expedition adventures and travel experiences. The one-month return of Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) was -8.29%, and its shares gained 28.54% of their value over the last 52 weeks. On February 28, 2025, Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) stock closed at $11.17 per share with a market capitalization of $609.882 million.
Ariel Small Cap Value Strategy stated the following regarding Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) in its Q4 2024 investor letter:
"Additionally, shares of luxury adventure travel services company, Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) jumped as earnings results exceeded consensus estimates on strength from both the cruise and land-based experience businesses. LIND also announced a leadership succession plan. Founder and long-time CEO, Sven-Olof Lindblad will be stepping into a new position as co-chair of the board of directors and cruise industry veteran, Natalya Leahy is joining the organization as CEO. The company is also bringing on experienced private company CFO, Rick Goldberg. Looking ahead, we expect LIND will increasingly benefit from both its new management structure and strategic relationship with Disney/National Geographic. We believe the expanded fleet and co-branded omnichannel marketing campaign will provide meaningful tailwinds 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, 27 hedge fund portfolios held Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) at the end of the fourth quarter compared to 18 in the third quarter. 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 cheapest AI stock.