Ariel Investments, an investment management company, released its “Ariel Appreciation Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, all the major U.S. indices posted gains. The Ariel Appreciation fund rose +9.90% in the quarter, trailing the +10.08% return for the Russell Midcap Value Index and outperforming the +9.21% returns of the Russell Midcap Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Ariel Appreciation Fund highlighted stocks like The Charles Schwab Corporation (NYSE:SCHW) in the third quarter 2024 investor letter. The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company that offers wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The one-month return of The Charles Schwab Corporation (NYSE:SCHW) was 14.44%, and its shares gained 40.32% of their value over the last 52 weeks. On October 15, 2024, The Charles Schwab Corporation (NYSE:SCHW) stock closed at $71.96 per share with a market capitalization of $132.864 billion.
Ariel Appreciation Fund stated the following regarding The Charles Schwab Corporation (NYSE:SCHW) in its Q3 2024 investor letter:
“Lastly, financial services provider, The Charles Schwab Corporation (NYSE:SCHW) fell during the quarter as investors became focused on the ongoing decline in transactional cash balances and its earnings impact. The lower rate environment and retirement announcements across the executive leadership team further weighed on shares. Interestingly, SCHW indicated plans to increase the usage of third-party banks over time, while prioritizing its balance sheet for customer lending activities. This would provide clients with extended FDIC insurance, while improving bank liquidity and lowering capital intensity. We believe the company should be able to flex its scale and customer-centric focus to improve the organic growth profile, regrow deposits and generate durable earnings across market cycles. We also think the TD Ameritrade acquisition will create incremental value by enhancing SCHW’s industry standing and long-term growth.”
A corporate finance professional studying a financial performance chart.
The Charles Schwab Corporation (NYSE:SCHW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge fund portfolios held The Charles Schwab Corporation (NYSE:SCHW) at the end of the second quarter which was 71 in the previous quarter. The third quarter revenue of The Charles Schwab Corporation (NYSE:SCHW) increased 5% year-over-year to $4.8 billion. While we acknowledge the potential of The Charles Schwab Corporation (NYSE:SCHW) 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.
In another article, we discussed The Charles Schwab Corporation (NYSE:SCHW) and shared Oakmark Fund’s views on the company in Q3 2024. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.