Reasons for the Outperformance of Royal Caribbean Cruises Ltd. (RCL)
Ariel Investments, an investment management company, released its “Ariel Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. Global markets in 2023 outperformed expectations, led by large-cap tech stocks known as the "magnificent seven." Improving inflation data and dovish comments from the Fed drove a strong finish to the year. Ariel Fund rose +13.41% in the fourth quarter, in line with the +13.35% of the Russell 2500 Index, but short of the +13.76% of the Russell 2500 Value Index. Over the past year, Ariel Fund increased by +15.81%, slightly below the +15.98% of the Russell 2500 Value Index and behind the +17.42% gain of the Russell 2500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ariel Fund featured stocks like Royal Caribbean Cruises Ltd. (NYSE:RCL) in the fourth quarter 2023 investor letter. Headquartered in Miami, Florida, Royal Caribbean Cruises Ltd. (NYSE:RCL) is a cruise company. On March 8, 2024, Royal Caribbean Cruises Ltd. (NYSE:RCL) stock closed at $127.47 per share. One-month return of Royal Caribbean Cruises Ltd. (NYSE:RCL) was 8.93%, and its shares gained 98.52% of their value over the last 52 weeks. Royal Caribbean Cruises Ltd. (NYSE:RCL) has a market capitalization of $32.715 billion.
Ariel Fund stated the following regarding Royal Caribbean Cruises Ltd. (NYSE:RCL) in its fourth quarter 2023 investor letter:
"Some holdings in the portfolio advanced considerably this quarter. Global cruise vacation company, Royal Caribbean Cruises Ltd. (NYSE:RCL), advanced on another quarterly earnings beat and subsequent raise in full-year guidance driven by stronger than anticipated consumer demand and solid cost containment. The company continues to experience solid momentum in onboard spend, while 2024 booking trends are significantly ahead of historical ranges at higher pricing. We believe the resiliency of the core cruise consumer in combination with management’s superior operational expertise and revised earnings outlook lays the foundation for RCL to exceed its three-year strategic imperative, the Trifecta Program."
An aerial view of a luxurious cruise ship, surrounded by the blue horizon.
Royal Caribbean Cruises Ltd. (NYSE:RCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Royal Caribbean Cruises Ltd. (NYSE:RCL) was held by 54 hedge fund portfolios, up from 41 in the previous quarter, according to our database.
We discussed Royal Caribbean Cruises Ltd. (NYSE:RCL) in another article and shared the list of best cruise stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.
