What Makes iQIYI (IQ) a Prospective Investment Opportunity?
Ariel Investments, an investment management company, released its “Ariel Global Fund” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the Ariel Global fund traded +3.32% higher, trailing the +6.18% return of the MSCI ACWI Index and outperforming the MSCI ACWI Value Index’s +2.98% gain. The fund’s lack of exposure to Materials and Energy was the greatest source of positive attribution in the quarter, while Communication Services holdings and choices within Information Technology detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ariel Global Fund highlighted stocks like IQIYI, Inc. (NASDAQ:IQ) in the second quarter 2023 investor letter. Headquartered in Beijing, China, IQIYI, Inc. (NASDAQ:IQ) is an online entertainment video services provider. On September 12, 2023, IQIYI, Inc. (NASDAQ:IQ) stock closed at $4.61 per share. One-month return of IQIYI, Inc. (NASDAQ:IQ) was -16.18%, and its shares gained 32.85% of their value over the last 52 weeks. IQIYI, Inc. (NASDAQ:IQ) has a market capitalization of $4.506 billion.
Ariel Global Fund made the following comment about IQIYI, Inc. (NASDAQ:IQ) in its Q2 2023 investor letter:
"Lastly, we established a new position in IQIYI, Inc. (NASDAQ:IQ), a leading long form online video entertainment service in China. Despite facing recent obstacles, including competition from short-form content platforms, iQIYI boasts a devoted user base, robust partnerships with major content providers and an extensive collection of original and licensed content. Our confidence in this investment is further strengthened by iQIYI’s implementation of a proprietary industrialized production system. This technology leverages data-driven approaches to effectively manage content creation, allocate budgets, and monitor production progress, facilitating sustainable growth and informed decision-making."
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IQIYI, Inc. (NASDAQ:IQ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held IQIYI, Inc. (NASDAQ:IQ) at the end of second quarter which was 17 in the previous quarter.
We discussed IQIYI, Inc. (NASDAQ:IQ) in another article and shared the list of best Asian stocks to buy according to hedge funds. 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.
