Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 30th June 2026
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 17.04% | - |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 17.04% | - |
Ariel Small Cap Value returned 17.04% net in Q2 2026, matching the Russell 2000 Value Index as U.S. equities rebounded sharply with their strongest quarterly gains since 2020. The portfolio benefited from strong performance in travel, entertainment and medical devices holdings. Lindblad Expeditions led gains with robust demand, record occupancy and sustained pricing strength in luxury adventure travel. Sphere Entertainment advanced on solid earnings and improving operating fundamentals as demand for immersive experiences drove margin expansion. The manager initiated positions in Haemonetics Corporation, a medical devices company positioned to benefit from favorable demographics and rising demand for plasma-based therapies, and Masco Corporation, the largest U.S. plumbing fixtures manufacturer with strong brands and margin expansion potential. Detractors included Core Laboratories, pressured by geopolitical tensions and softer drilling activity, and Prestige Consumer Healthcare, impacted by supply constraints. The manager maintains a measured outlook for the second half, acknowledging modest global growth, geopolitical tensions and concentrated market leadership, while remaining focused on long-term value creation through disciplined bottom-up research and valuation discipline as market leadership broadens.
Ariel Small Cap Value seeks to own high-quality small-cap businesses at attractive valuations through rigorous bottom-up fundamental research, emphasizing durable business models, strong balance sheets, capable management teams and sustainable competitive advantages.
The manager enters the second half of 2026 with a measured outlook, acknowledging modest and uneven global growth, ongoing geopolitical tensions, concentrated market leadership in large-cap technology, and consumer pressures from higher borrowing costs and inflation. Despite these headwinds, the focus remains on long-term value creation through bottom-up research and valuation discipline, seeking to capitalize on opportunities as market leadership broadens and company-specific fundamentals become more important.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 15 2026 | 2026 Q2 | BCO, CLB, HAE, HCKT, KMT, KN, LIND, MAS, NVT, PBH, SPHR | Building Products, Consumer Healthcare, Entertainment, Medical Devices, Oil Services, small caps, Travel, value |
LIND KN SPHR CLB PBH BCO HAE MAS |
Ariel Small Cap Value returned 17.04% net in Q2 2026, matching its benchmark as equities rebounded sharply. Travel and entertainment holdings led gains while oil services lagged. The manager added medical devices and building products positions, maintaining focus on high-quality small-cap businesses at attractive valuations. Despite acknowledging macro headwinds including geopolitical tensions and concentrated market leadership, the strategy remains grounded in rigorous fundamental research and long-term value creation. |
| Apr 16 2026 | 2026 Q1 | BCO, GNRC, LFUS, LIND, MAT, NCLH | Data centers, energy, Geopolitical, inflation, small caps, Travel, value |
GNRC LIND LFUS NCLH MAT BCO |
Ariel Small Cap Value returned +0.92% net in Q1 2026, underperforming benchmarks amid Middle East conflict-driven volatility. Top contributors Generac and Lindblad benefited from data center demand and cruise recovery respectively, while Norwegian Cruise Line and Mattel detracted. Manager maintains cautious 2026 outlook citing recession risks but emphasizes long-term discipline in quality companies. |
| Jan 18 2026 | 2025 Q4 | AMG, FDS, GNRC, KMT, NCLH, PSKY, REZI, RLI, SPHR, ZBRA | AI, Entertainment, insurance, Manufacturing, small cap, technology, value |
SPHR AMG KMT REZI GNRC NCLH FDS RLI ZBRA |
Ariel Small Cap Value posted modest Q4 gains led by Sphere Entertainment and Affiliated Managers Group, while adding positions in RLI Corp and FactSet Research. The managers enter 2026 with measured caution given market volatility and large-cap concentration, maintaining their disciplined long-term approach focused on robust fundamentals and strong management teams. |
| Oct 15 2025 | 2025 Q3 | BCO, KMT, MAT, MSGE, PBH, REZI, SPHR, ZBRA | consumer, Entertainment, industrials, rates, small caps, technology, value |
REZI US BCO US SPHR US KMT US |
Ariel Small Cap Value posted strong Q3 returns as small caps outperformed amid Fed rate cuts and earnings growth. The fund maintains pro-cyclical positioning in undervalued businesses, with small caps trading at historically steep discounts to large caps. Key contributors included Resideo and Brink's on strong earnings, while Prestige Consumer and Mattel faced temporary headwinds. |
| Jul 17 2025 | 2025 Q2 | CLB, DNB, FAF, LIND, OSW, REZI, WEX, ZBRA | AI, Oil Services, small cap, tariffs, technology, Trade Policy, Travel, value |
CLB FAF ZBRA OSW LIND REZI CLB FAF WEX ZBRA |
Ariel Small Cap Value outperformed with +7.58% quarterly returns, led by travel stocks OneSpaWorld and Lindblad Expeditions. The fund added Zebra Technologies while managing tariff-related volatility. With small caps at historic discounts to large caps and pro-cyclical positioning in undervalued businesses, the manager expects significant outperformance as valuation gaps narrow over the next two years. |
| Mar 31 2025 | 2025 Q1 | AAPL, ADT, AMZN, BIO, FAF, GOOGL, LESL, LIND, META, MIDD, MSFT, NCLH, NVDA, TSLA | discount, Quality, Recession, small caps, value, volatility |
MIDD ADT FAF NCLH LESL LIND BIO |
Ariel Small Cap Value fell 10.73% in Q1 2025, underperforming benchmarks amid tariff fears and policy uncertainty. The fund added Bio-Rad Laboratories while benefiting from Middleby's strategic review and ADT's strong results. Despite recession concerns, managers are actively buying quality companies at significant discounts to intrinsic value, viewing current volatility as creating long-term opportunities. |
| Dec 31 2024 | 2024 Q4 | AAPL, AMZN, BCO, GOOGL, LIND, META, MGPI, MHK, MSFT, NCLH, NVDA, OSW, TSLA | consumer, Cruises, fundamentals, small caps, Travel, value |
NCLH OSW LIND MGPI BCO MHK |
Ariel Small Cap Value gained 9% in 2024 despite Q4 weakness as markets concentrated in mega-cap tech. Travel holdings like Norwegian Cruise Line drove performance while spirits company MGP Ingredients detracted. The manager expects small caps to benefit when market broadening occurs beyond the Magnificent Seven, rewarding their disciplined value approach focused on differentiated businesses. |
| Sep 30 2024 | 2024 Q3 | BRC, CLB, JLL, LAZ, LESL, LIND, MHK, SRCL, WEX | energy, Manufacturing, payments, real estate, small caps, Travel, value |
JLL LAZ MHK LESL LIND CLB WEX |
Ariel Small Cap Value delivered solid Q3 returns as value outperformed growth. Strong performance from real estate and financial services holdings offset weakness in consumer discretionary names. The manager sees opportunity as markets broaden beyond mega-caps, favoring their patient approach to owning differentiated small cap businesses with competitive advantages. |
| Jul 31 2024 | 2024 Q2 | BCO, CLB, HMN, LESL, MIDD, OSW, PARA, SPHR | AI, Entertainment, Logistics, Oil Services, small cap, Travel, value |
OSW BCO CLB LESL SPHR MIDD PARA |
Ariel Small Cap Value fell 4.04% in Q2 as AI momentum dominated markets, creating extreme bifurcation. Strong performers included OneSpaWorld, Brink's, and Core Labs on solid earnings. Leslie's and Middleby disappointed. The fund added Paramount Global on merger weakness. Despite macro risks, Ariel remains cautiously optimistic that rate cuts will benefit small-cap value stocks. |
| Apr 15 2024 | 2024 Q1 | CG, DNB, LAZ, LIND, MGPI, NVT, OSW, SPHR | AI, Electrical, Entertainment, small cap, Spirits, Travel, value |
SPHR LAZ NVT LIND OSW DNB MGPI |
Ariel Small Cap Value outperformed its value benchmark in Q1 despite lagging growth indices. Entertainment and electrical equipment holdings drove gains while travel names faced geopolitical headwinds. The manager remains cautiously optimistic, expecting small-cap valuations to benefit from eventual Fed rate cuts and corporate profit resilience. |
| Feb 20 2024 | 2023 Q4 | CLB, JHG, JLL, LIND, MAT, NVST, OSW | consumer, energy, real estate, small caps, Travel, value |
LIND OSW JLL CLB AMAT NVST |
Ariel Small Cap Value delivered solid Q4 performance driven by travel recovery plays Lindblad Expeditions and OneSpaWorld, while facing headwinds in energy services and consumer discretionary. The fund maintains its patient value approach, positioning for small-cap outperformance as rates decline and the mega-cap concentration trade unwinds in 2024. |
| Sep 30 2023 | 2023 Q3 | AMG, BCO, LESL, LIND, MAT, MEI, NCLH, SPHR | consumer, Entertainment, Leisure, Logistics, small caps, Travel, value |
SPHR AMAT BCO LIND LESL NCLH AMG |
Ariel Small Cap Value underperformed in Q3 despite strong individual stories like Sphere Entertainment's successful venue opening and Mattel's Barbie movie windfall. The fund maintains conviction in differentiated business models with competitive moats, viewing current market volatility from rate fears and macro uncertainty as temporary noise within their long-term value investing framework. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
TravelLindblad Expeditions delivered strong earnings driven by robust demand, record occupancy and sustained pricing strength in luxury adventure travel. Booking trends remained encouraging with solid visibility into future demand supported by momentum in both near- and longer-term travel. The Land Experiences segment continued to perform well, adding diversification and incremental growth. |
Luxury Occupancy Demand Bookings |
EntertainmentSphere Entertainment showed solid earnings and improving operating fundamentals with strong demand for The Wizard of Oz driving operating leverage and margin expansion. Momentum continues to build as the company expands concert residencies, broadens its immersive film offering and increases venue utilization. Growing interest from partners seeking to develop additional Sphere locations in the U.S. and internationally underpins an attractive long-term growth trajectory. |
Concerts Immersive Venues Expansion | |
Oil ServicesCore Laboratories declined as geopolitical tensions, weather disruptions and softer U.S. land drilling activity impacted performance. These factors weighed on revenue and margins, particularly as Middle East disruptions affected operations. Despite near-term earnings pressure, the company's global footprint and specialized services offer an attractive way to participate in future energy development cycles. |
Drilling Geopolitical Energy Margins | |
Medical DevicesHaemonetics was initiated as a new position, operating across Plasma, Blood Center and Hospital segments with automated plasma collection systems, apheresis-based blood component technologies and interventional technologies including vascular closure devices. The company stands to benefit from favorable demographic trends, rising demand for plasma-based therapies and continued innovation in critical care technologies. |
Plasma Blood Healthcare Demographics | |
Building ProductsMasco was added as the world's largest manufacturer of plumbing fixtures and a leading provider of paint in the United States with differentiated brands including Behr paint, Delta faucets and Hansgrohe shower systems. Following divestiture of more cyclical businesses, Masco has sharpened its focus on higher-quality segments where it enjoys meaningful scale, strong brand equity and operational advantages that should support continued margin expansion. |
Plumbing Paint Brands Margins | |
ValueThe manager remains focused on the long term seeking to own high-quality businesses at attractive valuations through rigorous bottom-up research emphasizing durable business models, strong balance sheets, capable management teams and sustainable competitive advantages. The investment approach is grounded in long-term value creation rather than short-term macroeconomic forecasts, seeking to navigate near-term uncertainty while capitalizing on opportunities as market leadership broadens. |
Valuation Quality Research Fundamentals | |
| 2026 Q1 |
EnergyEscalating Middle East conflict pushed energy prices higher and disrupted global supply chains, reviving inflation concerns. Energy sector benefited from shift away from mega-tech leaders during market volatility. |
Oil Energy Transition Inflation Geopolitical Supply Chain |
Data CentersRising electricity demand and rapid growth in AI and data centers are driving demand for power generation equipment. Generac highlighted multi-year growth trajectory supported by data center and hyperscaler demand with growing backlog. |
AI Cloud Power Equipment Infrastructure Grid Upgrade | |
TravelCruise industry showing recovery with strong occupancy and pricing. Lindblad Expeditions advanced following earnings beat as cruise occupancy continues to recover, though Norwegian Cruise Line faced operational challenges under new leadership. |
Cruises Tourism Leisure Recovery Pricing | |
| 2025 Q4 |
AIArtificial intelligence continues to drive outsized gains in Technology sector and fuel enthusiasm for cloud infrastructure. AI infrastructure expansion is contributing to rising energy needs and benefiting data center market growth. However, concerns exist around AI's impact on traditional business models, with some companies facing existential fears around artificial intelligence disruption. |
Artificial Intelligence Cloud Infrastructure Data Centers Technology |
Small CapsThe Ariel Small Cap Value strategy delivered modest gains in Q4, slightly underperforming the Russell 2000 Value Index but outperforming the broader Russell 2000. Over the trailing year, performance was just shy of both benchmark indices. The strategy maintains focus on robust balance sheets, durable fundamentals, and valuation discipline in small-cap investing. |
Small Cap Value Investing Russell 2000 | |
EntertainmentLive entertainment company Sphere Entertainment was the top contributor, supported by strengthening business fundamentals and robust consumer demand for The Wizard of Oz. The success is expected to accelerate discussions for future Spheres both domestically and internationally, representing compelling long-term growth opportunities through scalable franchise potential. |
Live Entertainment Immersive Technology Consumer Demand | |
CruisesNorwegian Cruise Line faces renewed industry skepticism following peer earnings and cautious guidance, with shares falling on slowing yield growth concerns. However, the company continues showing strength with record bookings, robust customer deposits, and solid forward-booked position, while management remains confident in long-term demand supported by strategic capacity expansion. |
Cruise Industry Travel Demand Bookings | |
| 2025 Q3 |
Small CapsSmall caps outperformed as capital rotated into undervalued segments of the market. Small caps are currently trading at one of the steepest discounts to large caps since the dot-com era. Consensus earnings projections suggest the Russell 2000 Index may outpace the Russell 1000 Index over the next two years. |
Value Discount Rotation Outperformance Russell |
ValueThe fund sees compelling value in small-cap equities and select cyclicals, many of which are trading at historically attractive levels. Their pro-cyclical positioning reflects bottom-up conviction in undervalued businesses rather than macroeconomic forecasts. |
Undervalued Attractive Cyclicals Conviction Positioning | |
EntertainmentSphere Entertainment advanced over the period, supported by strengthening business fundamentals and demand for The Wizard of Oz. The company is scaling its concert residencies and launching the capital-light Sphere Network of smaller immersive venues domestically. |
Live Sports Media Venues Residencies Immersive | |
| 2025 Q2 |
TravelOneSpaWorld Holdings showed strong demand for spa services and medi-spa treatments despite consumer sentiment concerns. Lindblad Expeditions delivered robust results with improved occupancy and net yield growth, expanding into European river cruises through a new partnership. |
Spa Services Cruise Adventure Travel Occupancy Bookings |
Oil ServicesCore Laboratories declined on mixed earnings as increased demand for diagnostic services in U.S. markets was offset by weaker Reservoir Description performance due to seasonality, geopolitical tensions, and tariff concerns. |
Diagnostic Services Production Enhancement Reservoir Description Offshore Onshore | |
Trade PolicyLiberation Day tariff announcement pushed markets to bear territory before being paused. Multiple companies including REZI and CLB discussed tariff impacts, with REZI planning to mitigate through pricing and inventory repositioning. |
Tariffs Liberation Day Supply Chain Pricing Inventory | |
AIReignited enthusiasm for artificial intelligence themed stocks helped drive U.S. indices to new all-time highs after the initial tariff-related market decline. |
Artificial Intelligence Technology Growth Recovery | |
| 2025 Q1 |
ValueThe fund focuses on acquiring downtrodden shares of quality companies whose value should be realized over the long term. Holdings are trading at a significant discount to their private market values, creating opportunities for patient investors during market dislocations. |
Value Discount Intrinsic Quality Undervalued |
Small CapsThe strategy specifically targets small-cap companies, with the Russell 2000 Value Index as the primary benchmark. The fund believes small caps offer attractive opportunities when markets become volatile and pessimistic. |
Small Caps Russell 2000 Volatility Opportunities | |
| 2024 Q4 |
TravelThe fund holds multiple travel-related companies including Norwegian Cruise Line, OneSpaWorld, and Lindblad Expeditions. These companies showed strong performance driven by robust consumer demand, healthy onboard spending, and solid pricing power in the cruise and adventure travel segments. |
Cruises Adventure Travel Consumer Demand Pricing Power Fleet Expansion |
Small CapsThe letter focuses on small cap value investing, noting that small cap issues were driven sharply lower in December despite strong fundamentals. The manager expects the performance gap between mega-cap stocks and smaller company counterparts to narrow, benefiting their small cap portfolios. |
Russell 2000 Value Investing Performance Gap Fundamentals Concentration | |
| 2024 Q3 |
ValueThe fund focuses on small cap value investing, with the Russell 2000 Value Index outperforming growth in Q3. The manager believes patient investors who own differentiated businesses with solid competitive positioning and robust balance sheets will reap superior returns over time. |
Value Small Caps Differentiated Competitive Balance Sheets |
Commercial Real EstateJones Lang LaSalle benefited from a rebound in transaction, leasing and capital markets activity following Fed rate cuts. Company leadership is optimistic for near-term recovery and remains confident in medium- and longer-term revenue outlook for both transactional and recurring revenue streams. |
Real Estate Transactions Leasing Capital Markets Recovery | |
TravelLindblad Expeditions operates luxury adventure travel services with strong fundamentals despite geopolitical headwinds. The company recently acquired two new vessels for Galapagos operations and has a strategic relationship with Disney/National Geographic that should provide tailwinds for multiple expansion. |
Travel Expeditions Luxury Adventure Tourism | |
| 2024 Q2 |
AIThe bull market was powered by investor enthusiasm for artificial intelligence themed stocks, creating a narrow momentum-driven rally. This AI focus contributed to extreme market bifurcation, with non-AI companies in the S&P 500 declining 1.2%. |
Artificial Intelligence Technology Momentum Market Leadership |
EntertainmentThe fund holds positions in entertainment companies including Sphere Entertainment and Paramount Global. Sphere is developing immersive venue experiences and international expansion, while Paramount faces streaming competition and linear TV pressures but expects significant earnings growth. |
Media Streaming Live Entertainment Content | |
Oil ServicesCore Laboratories performed well with strong international demand for laboratory services and completion diagnostic solutions. Management projects international growth from Middle East, Asia Pacific and West Africa projects despite flat U.S. onshore activity. |
Oilfield Services International Diagnostics Energy | |
TravelOneSpaWorld, a provider of wellness services onboard cruise ships and destination resorts, advanced following earnings beats and guidance raises. Robust consumer demand, higher onboard spend levels and strong free cash flow generation contributed to performance. |
Cruises Wellness Consumer Demand Tourism | |
| 2024 Q1 |
AIInvestor enthusiasm around artificial intelligence drove broad-based market rally in Q1. AI-themed mega-cap stocks dominated performance, though their concentration and elevated valuations remain influential on overall market performance. |
Artificial Intelligence Technology Mega Cap Market Rally |
EntertainmentSphere Entertainment delivered robust first quarter results with strong revenue and margins from experience shows, sellout U2 concerts, and F1 takeover. The company represents a long-term opportunity in experiential immersive venues that remains underappreciated. |
Live Entertainment Immersive Technology Venues Sports | |
TravelLindblad Expeditions faced headwinds from geopolitical tensions impacting travel itineraries, while OneSpaWorld showed strong fundamentals with robust consumer demand and solid onboard spend levels despite recent price declines. |
Expedition Tourism Cruise Services Geopolitical Risk Consumer Demand | |
| 2023 Q4 |
TravelThe fund holds luxury adventure travel company Lindblad Expeditions and cruise spa services provider OneSpaWorld, both benefiting from strong demand and pricing power in the travel recovery. Future travel reservations remain strong with companies increasing prices. |
Cruises Tourism Leisure |
ValueThe fund focuses on patient value investing, seeking companies trading below intrinsic worth with solid fundamentals. The manager emphasizes taking a long-term view and staying disciplined during market volatility. |
Undervalued Fundamentals Patient Capital | |
| 2023 Q3 |
EntertainmentSphere Entertainment's Las Vegas venue opened on track with costs in-line, planning 365 days of events annually including concerts, sporting events, and The Sphere Experience. Mattel benefited from the successful Barbie movie release, expected to generate over $125 million in gross billings from film royalty payments. |
Live Entertainment Media Venues Movies Royalties |
TravelNorwegian Cruise Line continues delivering record cumulative bookings and increased occupancy at higher prices despite profit taking. Lindblad Expeditions reported revenue and EBITDA ahead of expectations with strong future travel reservations and booking trends ahead of pre-pandemic levels. |
Cruises Expedition Tourism Bookings Occupancy Pricing | |
LogisticsBrink's Company delivered record second quarter revenue and operating profit, with management focused on improving customer experience, enhancing productivity, and driving growth through digital retail solutions and ATM managed services while improving free cash flow conversion. |
Cash Management Security Services Digital Solutions ATM Services Productivity |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 15, 2026 | Fund Letters | Ariel Small Cap Value Strategy | LIND | Lindblad Expeditions Holdings, Inc. | Travel Services | Hotels, Resorts & Cruise Lines | Bull | NASDAQ | Adventure Travel, Cruise lines, Disney Partnership, Expedition Cruises, growth, hospitality, Land Experiences, Luxury Travel, multiple expansion, National Geographic, Pricing power, Record Occupancy, Tourism | Login |
| Jul 15, 2026 | Fund Letters | Ariel Small Cap Value Strategy | KN | Knowles Corporation | Electronic Components | Electronic Components | Bull | New York Stock Exchange | Audio Components, capital return, Electronic Components, growth, market leadership, Medtech, Mems, Microphones, Niche markets, Precision Devices, share repurchases, Speakers, Specialty Audio | Login |
| Jul 15, 2026 | Fund Letters | Ariel Small Cap Value Strategy | SPHR | Sphere Entertainment Co. | Entertainment | Movies & Entertainment | Bull | New York Stock Exchange | Abu Dhabi, Concert Residencies, Experiential Entertainment, growth, Immersive Entertainment, international expansion, Las Vegas, Live entertainment, margin expansion, operating leverage, platform expansion, Venue Operator | Login |
| Jul 15, 2026 | Fund Letters | Ariel Small Cap Value Strategy | CLB | Core Laboratories Inc. | Oil & Gas Equipment & Services | Oil & Gas Equipment & Services | Bull | New York Stock Exchange | capital return, Cyclical, dividends, Energy Services, global footprint, Middle East, Oil & Gas, oilfield services, Production Enhancement, Reservoir Description, share repurchases, Specialized Services | Login |
| Jul 15, 2026 | Fund Letters | Ariel Small Cap Value Strategy | PBH | Prestige Consumer Healthcare Inc. | Drug Manufacturers - Specialty & Generic | Personal Products | Bull | New York Stock Exchange | Breathe Right, Consumer healthcare, consumer staples, debt paydown, Eye Care, M&A, OTC Products, Over-the-counter, personal care, portfolio expansion, strategic acquisitions, turnaround | Login |
| Jul 15, 2026 | Fund Letters | Ariel Small Cap Value Strategy | BCO | The Brink's Company | Security & Protection Services | Security & Alarm Services | Bull | New York Stock Exchange | Armored Transportation, ATM Services, Cash management, Digital Retail Solutions, Integration, Logistics, M&A, NCR Atleos, Payment Infrastructure, Scale Expansion, security services, undervalued | Login |
| Jul 15, 2026 | Fund Letters | Ariel Small Cap Value Strategy | HAE | Haemonetics Corporation | Medical Devices | Health Care Equipment | Bull | New York Stock Exchange | Apheresis, Blood Management, Critical Care, Demographics, growth, Healthcare Equipment, healthcare innovation, Hematology, Hospital Products, Medical devices, Plasma Collection, Plasma Therapies, Vascular Closure | Login |
| Jul 15, 2026 | Fund Letters | Ariel Small Cap Value Strategy | MAS | Masco Corporation | Building Products & Equipment | Building Products | Bull | New York Stock Exchange | Behr, Building Products, Consumer brands, Delta Faucets, Distribution, Hansgrohe, Home Depot, home improvement, margin expansion, market leadership, Paint, Plumbing Fixtures, portfolio optimization | Login |
| Apr 16, 2026 | Fund Letters | Ariel Small Cap Value Strategy | GNRC | Generac Holdings | Specialty Industrial Machinery | Electrical Equipment | Bull | New York Stock Exchange | AI infrastructure, Commercial Industrial, data centers, EBITDA growth, electrical equipment, energy infrastructure, Grid Reliability, Power generation | Login |
| Apr 16, 2026 | Fund Letters | Ariel Small Cap Value Strategy | LIND | Lindblad Expeditions | Travel Services | Hotels, Restaurants & Leisure | Bull | NASDAQ | Adventure Travel, Brand Equity, Disney Partnership, Expedition Cruising, fleet-expansion, Land Experiences, Luxury Travel, multiple expansion | Login |
| Apr 16, 2026 | Fund Letters | Ariel Small Cap Value Strategy | LFUS | Littelfuse Inc | Electronic Components | Electronic Equipment, Instruments & Components | Bull | NASDAQ | capital allocation, Circuit Protection, data centers, Electronics Recovery, Industrial Trends, market share gains, power solutions, Utility Infrastructure | Login |
| Apr 16, 2026 | Fund Letters | Ariel Small Cap Value Strategy | NCLH | Norwegian Cruise Line Holdings Ltd | Travel Services | Hotels, Restaurants & Leisure | Bull | New York Stock Exchange | brand strength, Cruise lines, debt reduction, Governance Improvement, investment grade, Liquidity Position, Oceania Cruises, premium brands | Login |
| Apr 16, 2026 | Fund Letters | Ariel Small Cap Value Strategy | MAT | Mattel Inc | Leisure | Leisure Products | Bull | NASDAQ | Brand Extensions, Digital gaming, Direct Consumer, Entertainment Content, Intellectual Property, IP monetization, Share Buyback, Toy Manufacturing | Login |
| Apr 16, 2026 | Fund Letters | Ariel Small Cap Value Strategy | BCO | Brink's Company | Security & Protection Services | Commercial Services & Supplies | Bull | New York Stock Exchange | ATM Services, Cash management, Cost synergies, Digital Retail Solutions, EPS Accretive, growth opportunity, Logistics Services, NCR Atleos Acquisition | Login |
| Jan 18, 2026 | Fund Letters | John Rogers | SPHR | Sphere Entertainment Co. | Communication Services | Movies & Entertainment | Bull | New York Stock Exchange | Experiential, growth, Liveentertainment, Scalability, Utilization | Login |
| Jan 18, 2026 | Fund Letters | John Rogers | AMG | Affiliated Managers Group Inc. | Financials | Asset Management & Custody Banks | Bull | New York Stock Exchange | Alternatives, Assetmanagement, Capitalallocation, Inflows, Wealth | Login |
| Jan 18, 2026 | Fund Letters | John Rogers | KMT | Kennametal Inc. | Industrials | Industrial Machinery & Supplies & Components | Bull | New York Stock Exchange | dividends, Execution, Industrial, Margins, Pricing | Login |
| Jan 18, 2026 | Fund Letters | John Rogers | REZI | Resideo Technologies Inc. | Industrials | Building Products | Bull | New York Stock Exchange | Distribution, HVAC, Margins, recovery, spin-off | Login |
| Jan 18, 2026 | Fund Letters | John Rogers | GNRC | Generac Holdings Inc. | Industrials | Electrical Components & Equipment | Bull | New York Stock Exchange | cashflow, datacenters, Powergeneration, Resiliency, Secular | Login |
| Jan 18, 2026 | Fund Letters | John Rogers | NCLH | Norwegian Cruise Line Holdings Ltd. | Consumer Discretionary | Hotels Restaurants & Leisure | Bull | New York Stock Exchange | Bookings, Cruises, leverage, recovery, Travel | Login |
| Jan 18, 2026 | Fund Letters | John Rogers | FDS | FactSet Research Systems Inc. | Information Technology | Data Processing & Outsourced Services | Bull | New York Stock Exchange | AI, analytics, Financialdata, Margins, Switchingcosts | Login |
| Jan 18, 2026 | Fund Letters | John Rogers | RLI | RLI Corp. | Financials | Insurance | Bull | New York Stock Exchange | Cycles, Discipline, Insurance, profitability, underwriting | Login |
| Jan 18, 2026 | Fund Letters | John Rogers | ZBRA | Zebra Technologies Corp. | Information Technology | Electronic Equipment Instruments & Components | Bull | NASDAQ | Automation, efficiency, innovation, Logistics, Moat | Login |
| Oct 15, 2025 | Fund Letters | John Rogers | REZI US | Resideo Technologies, Inc. | Industrials | Building Products | Bull | NYSE | buybacks, growth, Housing, innovation, IoT, Margins, Smart home, valuation | Login |
| Oct 15, 2025 | Fund Letters | John Rogers | BCO US | Brink’s Company | Industrials | Security & Protection Services | Bull | NYSE | buybacks, FCF, growth, Logistics, Margins, Security, technology, valuation | Login |
| Oct 15, 2025 | Fund Letters | John Rogers | SPHR US | Sphere Entertainment Co. | Communication Services | Movies & Entertainment | Bull | NYSE | entertainment, expansion, Experiential, growth, Margins, media, valuation, Venues | Login |
| Oct 15, 2025 | Fund Letters | John Rogers | KMT US | Kennametal, Inc. | Consumer Discretionary | Machinery | Bull | NYSE | dividends, growth, Industrials, machinery, manufacturing, Reshoring, valuation | Login |
| Jul 17, 2025 | Fund Letters | John Rogers | CLB | Core Laboratories Inc. | Energy | Oil & Gas Equipment & Services | Bull | NYSE | Cyclicals, deleveraging, diagnostics, energy, Offshore, ROIC, services, tariffs | Login |
| Jul 17, 2025 | Fund Letters | John Rogers | FAF | First American Financial Corporation | Financials | Title Insurance | Bull | NYSE | dividends, Housing, Insurance, leverage, Mortgages, recovery, Regulation, Spreads | Login |
| Jul 17, 2025 | Fund Letters | John Rogers | ZBRA | Zebra Technologies Corporation | Information Technology | Electronic Equipment & Instruments | Bull | NASDAQ | Automation, Barcodes, buybacks, Logistics, Margins, robotics, visibility, Warehouses | Login |
| Jun 30, 2025 | Fund Letters | Ariel Small Cap Value Strategy | OSW | OneSpaWorld Holdings Ltd. | Consumer Discretionary | Specialized Consumer Services | Bull | NASDAQ | Consumer Discretionary, Cruise Ships, debt reduction, Destination Resorts, Medi-spa, Share Buybacks, Wellness Services | Login |
| Jun 30, 2025 | Fund Letters | Ariel Small Cap Value Strategy | LIND | Lindblad Expeditions Holdings, Inc. | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | Adventure Travel, Disney Partnership, European River Cruises, Expedition Cruises, fleet-expansion, Luxury Travel, multiple expansion, National Geographic | Login |
| Jun 30, 2025 | Fund Letters | Ariel Small Cap Value Strategy | REZI | Resideo Technologies, Inc. | Industrials | Building Products | Bull | NYSE | Building Products, connected devices, margin expansion, product innovation, Residential Solutions, Smart home, Snap One Integration, Tariff mitigation | Login |
| Jun 30, 2025 | Fund Letters | Ariel Small Cap Value Strategy | CLB | Core Laboratories, Inc. | Energy | Oil, Gas & Consumable Fuels | Neutral | NYSE | debt reduction, Diagnostic Services, Free Cash Flow, International Growth, Oil Services, Production Enhancement, Reservoir Description, ROIC Improvement | Login |
| Jun 30, 2025 | Fund Letters | Ariel Small Cap Value Strategy | FAF | First American Financial Corporation | Financials | Insurance | Bull | NYSE | housing market, investment portfolio, Margin Improvement, mortgage origination, operating leverage, Real Estate, Scale Benefits, title insurance | Login |
| Jun 30, 2025 | Fund Letters | Ariel Small Cap Value Strategy | WEX | WEX, Inc. | Information Technology | Data Processing & Outsourced Services | Bull | NYSE | fleet services, Healthcare Benefits, high-margin, Payment Solutions, Payments Outsourcing, recurring revenue, share repurchases, Travel Benefits | Login |
| Jun 30, 2025 | Fund Letters | Ariel Small Cap Value Strategy | ZBRA | Zebra Technologies Corporation | Information Technology | Technology Hardware, Storage & Peripherals | Bull | NASDAQ | Bar-code Technology, distribution network, Free Cash Flow, innovation, Machine vision, market share gains, Supply Chain Efficiency, Warehouse Robotics | Login |
| Mar 31, 2025 | Fund Letters | Ariel Small Cap Value Strategy | MIDD | Middleby Corporation | Industrials | Industrial Machinery | Bull | NASDAQ | Activist Investment, Automation, Commercial Foodservice, Food Equipment, industrial machinery, strategic review, value unlock | Login |
| Mar 31, 2025 | Fund Letters | Ariel Small Cap Value Strategy | ADT | ADT Inc. | Technology | Electronic Equipment, Instruments & Components | Bull | NYSE | Automation, debt reduction, Free Cash Flow, security solutions, Smart home, Strategic Partnerships, subscription services | Login |
| Mar 31, 2025 | Fund Letters | Ariel Small Cap Value Strategy | FAF | First American Financial Corporation | Financials | Insurance | Bull | NYSE | commercial real estate, Cost management, investment portfolio, operating leverage, Real Estate Services, Technology Optimization, title insurance | Login |
| Mar 31, 2025 | Fund Letters | Ariel Small Cap Value Strategy | NCLH | Norwegian Cruise Line Holdings Ltd. | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NYSE | consumer demand, Consumer Discretionary, Cost management, Cruise lines, Leverage reduction, Pricing power, Travel & Leisure | Login |
| Mar 31, 2025 | Fund Letters | Ariel Small Cap Value Strategy | LESL | Leslie's Inc. | Consumer Discretionary | Specialty Retail | Bull | NASDAQ | Customer loyalty, direct-to-consumer, Pool care, scale advantage, Specialty retail, transformation strategy, vertical integration | Login |
| Mar 31, 2025 | Fund Letters | Ariel Small Cap Value Strategy | LIND | Lindblad Expeditions Holdings Inc. | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | Adventure Travel, brand partnerships, Consumer Discretionary, Expedition Cruising, Experiential Travel, fleet-expansion, Luxury Travel | Login |
| Mar 31, 2025 | Fund Letters | Ariel Small Cap Value Strategy | BIO | Bio-Rad Laboratories Inc. | Health Care | Life Sciences Tools & Services | Bull | NYSE | biotechnology, Clinical Diagnostics, global diversification, Laboratory Equipment, life sciences, market leadership, recurring revenue | Login |
| Dec 31, 2024 | Fund Letters | Ariel Small Cap Value Strategy | NCLH | Norwegian Cruise Line Holdings Ltd. | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NYSE | Bull, Consumer Discretionary, cruise line, Fleet Operations, Leisure Travel, Leverage reduction, margin expansion | Login |
| Dec 31, 2024 | Fund Letters | Ariel Small Cap Value Strategy | OSW | OneSpaWorld Holdings Ltd. | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | Balance Sheet Optimization, Bull, Consumer Discretionary, Cruise Ships, Destination Resorts, shareholder returns, Wellness Services | Login |
| Dec 31, 2024 | Fund Letters | Ariel Small Cap Value Strategy | LIND | Lindblad Expeditions Holdings, Inc. | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | Bull, Disney Partnership, Expedition Cruising, fleet-expansion, leadership transition, Luxury Adventure Travel, multiple expansion, National Geographic | Login |
| Dec 31, 2024 | Fund Letters | Ariel Small Cap Value Strategy | MGPI | MGP Ingredients, Inc. | Consumer Staples | Food Products | Bear | NASDAQ | Bear, Branded Spirits, consumer staples, Contract Distilling, Inventory Overhang, Spirits Manufacturing, strategic transition, Whiskey | Login |
| Dec 31, 2024 | Fund Letters | Ariel Small Cap Value Strategy | BCO | Brink's Company | Industrials | Commercial Services & Supplies | Bull | NYSE | ATM Services, Bull, Cash management, Digital Solutions, Logistics Services, margin expansion, Sainsbury Partnership, Technology investment | Login |
| Dec 31, 2024 | Fund Letters | Ariel Small Cap Value Strategy | MHK | Mohawk Industries Inc. | Consumer Discretionary | Household Durables | Bull | NYSE | Bull, Consumer Discretionary, Cost Restructuring, Cyclical Recovery, flooring products, housing market, market share gains, Residential Remodeling | Login |
| Sep 30, 2024 | Fund Letters | Ariel Small Cap Value Strategy | JLL | Jones Lang LaSalle Incorporated | Real Estate | Real Estate Services | Bull | NYSE | Capital markets, commercial real estate, Fee revenue, Leasing, operational efficiency, property management, Real Estate Services, Transaction Services, Work Dynamics | Login |
| Sep 30, 2024 | Fund Letters | Ariel Small Cap Value Strategy | LAZ | Lazard Inc | Financials | Investment Banking & Brokerage | Bull | NYSE | Active Strategies, asset management, Financial advisory, investment banking, M&A Advisory, Private Market Value, rate cuts, Revenue Growth, Specialty Offerings | Login |
| Sep 30, 2024 | Fund Letters | Ariel Small Cap Value Strategy | MHK | Mohawk Industries Inc | Consumer Discretionary | Home Furnishings | Bull | NYSE | Commercial Projects, construction, Cyclical Recovery, Flooring, home furnishings, margin expansion, Material Costs, productivity, Residential Remodeling, share repurchase | Login |
| Sep 30, 2024 | Fund Letters | Ariel Small Cap Value Strategy | LESL | Leslie's Inc | Consumer Discretionary | Specialty Retail | Bull | NASDAQ | customer experience, direct-to-consumer, inventory management, new CEO, Pool care, Spa Care, Specialty retail, turnaround, vertical integration, Weather Sensitivity | Login |
| Sep 30, 2024 | Fund Letters | Ariel Small Cap Value Strategy | LIND | Lindblad Expeditions Holdings Inc | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | Adventure Travel, Disney Partnership, Expedition Cruising, fleet-expansion, Galapagos, Lodge Operations, Luxury Travel, National Geographic, Safari, Tourism Niche | Login |
| Sep 30, 2024 | Fund Letters | Ariel Small Cap Value Strategy | CLB | Core Laboratories Inc | Energy | Oil & Gas Equipment & Services | Neutral | NYSE | Asia-Pacific, Completion Services, debt reduction, Drilling Services, Free Cash Flow, International Growth, Middle East, Oil Services, ROIC, West Africa | Login |
| Sep 30, 2024 | Fund Letters | Ariel Small Cap Value Strategy | WEX | WEX Inc | Information Technology | Data Processing & Outsourced Services | Bull | NYSE | Fintech, Fleet Management, Healthcare Benefits, high-margin, market leader, organic growth, Payment Solutions, Payments Outsourcing, recurring revenue, Travel Payments | Login |
| Jun 30, 2024 | Fund Letters | Ariel Small Cap Value Strategy | OSW | OneSpaWorld Holdings Ltd. | Consumer Discretionary | Specialized Consumer Services | Bull | NASDAQ | Consumer Discretionary, Cruise Ships, Destination Resorts, Free Cash Flow, Leisure, Share Buybacks, Travel, Wellness Services | Login |
| Jun 30, 2024 | Fund Letters | Ariel Small Cap Value Strategy | BCO | Brink's Company | Industrials | Commercial Services & Supplies | Bull | NYSE | ATM Services, capital returns, Cash management, Digital Retail Solutions, Logistics, margin expansion, security services | Login |
| Jun 30, 2024 | Fund Letters | Ariel Small Cap Value Strategy | CLB | Core Laboratories Inc. | Energy | Energy Equipment & Services | Bull | NYSE | Asia-Pacific, Completion Diagnostics, Free Cash Flow, International Growth, laboratory services, Middle East, Oil Services, West Africa | Login |
| Jun 30, 2024 | Fund Letters | Ariel Small Cap Value Strategy | LESL | Leslie's Inc. | Consumer Discretionary | Specialty Retail | Bull | NASDAQ | direct-to-consumer, Pool care, scale advantage, seasonal business, Spa Care, Specialty retail, vertically integrated, Weather Normalization | Login |
| Jun 30, 2024 | Fund Letters | Ariel Small Cap Value Strategy | SPHR | Sphere Entertainment Co. | Communication Services | Entertainment | Bull | NYSE | Concert Residencies, Franchise Opportunities, Immersive Technology, international expansion, Las Vegas, Live entertainment, Original Content, Sports Networks | Login |
| Jun 30, 2024 | Fund Letters | Ariel Small Cap Value Strategy | MIDD | Middleby Corporation | Industrials | Machinery | Bull | NASDAQ | Commercial Equipment, Cooking Technology, Food Equipment, Food service, Free Cash Flow, innovation, Kitchen Automation, margin expansion | Login |
| Jun 30, 2024 | Fund Letters | Ariel Small Cap Value Strategy | PARA | Paramount Global | Communication Services | Media | Bull | NASDAQ | content library, entertainment, Linear TV, media, merger, Paramount+, Streaming, turnaround | Login |
| Mar 31, 2024 | Fund Letters | Ariel Small Cap Value Strategy | SPHR | Sphere Entertainment Co. | Communication Services | Entertainment | Bull | NYSE | entertainment, franchise model, Immersive Technology, Las Vegas, live events, media, Sports Networks, Venue Operations | Login |
| Mar 31, 2024 | Fund Letters | Ariel Small Cap Value Strategy | LAZ | Lazard Ltd. | Financials | Investment Banking & Brokerage | Bull | NYSE | asset management, cost savings, Financial advisory, investment banking, Mergers acquisitions, Private Market Value, Revenue Growth | Login |
| Mar 31, 2024 | Fund Letters | Ariel Small Cap Value Strategy | NVT | nVent Electric plc | Industrials | Electrical Equipment | Bull | NYSE | data centers, electrical equipment, Electrification, Free Cash Flow, infrastructure, innovation, margin expansion, organic growth | Login |
| Mar 31, 2024 | Fund Letters | Ariel Small Cap Value Strategy | LIND | Lindblad Expeditions Holdings, Inc. | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | Adventure Travel, Disney Partnership, Expedition Cruising, Land-Based Operations, Luxury Tourism, market share, National Geographic, Pricing Discipline | Login |
| Mar 31, 2024 | Fund Letters | Ariel Small Cap Value Strategy | OSW | OneSpaWorld Holdings Ltd. | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | consumer demand, Cruise Ships, Free Cash Flow, Onboard Spending, risk/reward, Share Buybacks, Wave Season, Wellness Services | Login |
| Mar 31, 2024 | Fund Letters | Ariel Small Cap Value Strategy | DNB | Dun & Bradstreet Corporation | Industrials | Research & Consulting Services | Bull | NYSE | analytics, Artificial Intelligence, Commercial Data, Free Cash Flow, Master Data Management, risk management, supply chain, Wide Moat | Login |
| Mar 31, 2024 | Fund Letters | Ariel Small Cap Value Strategy | MGPI | MGP Ingredients, Inc. | Consumer Staples | Distillers & Vintners | Bull | NASDAQ | Acquisitions, Branded Spirits, contract manufacturing, margin expansion, premium brands, premiumization, Spirits Manufacturing, Whiskey | Login |
| Dec 31, 2023 | Fund Letters | Ariel Small Cap Value Strategy | LIND | Lindblad Expeditions Holdings, Inc. | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | Adventure Tourism, Expedition Cruising, Free Cash Flow, Luxury Travel, National Geographic Partnership, Pricing power, Technology Upgrade | Login |
| Dec 31, 2023 | Fund Letters | Ariel Small Cap Value Strategy | OSW | OneSpaWorld Holdings Ltd. | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | Cruise Ships, debt reduction, Destination Resorts, earnings beat, Guidance Raise, Share Buybacks, Wellness Services | Login |
| Dec 31, 2023 | Fund Letters | Ariel Small Cap Value Strategy | JLL | Jones Lang LaSalle | Real Estate | Real Estate Management & Development | Bull | NYSE | Expense Management, Fee Revenues, Interest Rate Headwinds, operational efficiency, property management, Real Estate Services, Work Dynamics | Login |
| Dec 31, 2023 | Fund Letters | Ariel Small Cap Value Strategy | CLB | Core Laboratories, Inc. | Energy | Energy Equipment & Services | Bull | NYSE | capital returns, Free Cash Flow, Geopolitical Headwinds, Global Operations, management track record, Oil Services, operating margin expansion | Login |
| Dec 31, 2023 | Fund Letters | Ariel Small Cap Value Strategy | AMAT | Mattel, Inc. | Consumer Discretionary | Leisure Products | Bull | NASDAQ | Barbie, cash flow generation, Entertainment Expansion, Hot Wheels, Iconic Brands, market share gains, Toy Manufacturing | Login |
| Dec 31, 2023 | Fund Letters | Ariel Small Cap Value Strategy | NVST | Envista Holdings Corp. | Health Care | Health Care Equipment & Supplies | Bull | NYSE | Dental Manufacturing, Facility Consolidation, Geopolitical Headwinds, High-Growth Segments, M&A Execution, multiple expansion, R&D pipeline | Login |
| Sep 30, 2023 | Fund Letters | Ariel Small Cap Value Strategy | SPHR | Sphere Entertainment Co. | Communication Services | Entertainment | Bull | NYSE | advertising, Concerts, entertainment, hospitality, Immersive Technology, Las Vegas, live events, media, sports entertainment, Venue Operations | Login |
| Sep 30, 2023 | Fund Letters | Ariel Small Cap Value Strategy | AMAT | Mattel, Inc. | Consumer Discretionary | Leisure Products | Bull | NASDAQ | Barbie, Brand Licensing, Consumer products, Disney, entertainment, Hot Wheels, IP monetization, Media Franchise, retail, Toys | Login |
| Sep 30, 2023 | Fund Letters | Ariel Small Cap Value Strategy | BCO | Brink's Company | Industrials | Commercial Services & Supplies | Bull | NYSE | ATM Services, Cash management, Digital Solutions, financial services, Logistics, Private Market Value, productivity, security services, Value | Login |
| Sep 30, 2023 | Fund Letters | Ariel Small Cap Value Strategy | LIND | Lindblad Expeditions Holdings, Inc. | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | Adventure Tourism, Booking Trends, Expedition Cruises, Luxury Travel, multiple expansion, niche market, Occupancy, recovery, risk/reward | Login |
| Sep 30, 2023 | Fund Letters | Ariel Small Cap Value Strategy | LESL | Leslie's Inc. | Consumer Discretionary | Specialty Retail | Bull | NASDAQ | cost-cutting, Customer loyalty, direct-to-consumer, Pool care, scale advantage, Specialty retail, vertical integration, Weather Impact | Login |
| Sep 30, 2023 | Fund Letters | Ariel Small Cap Value Strategy | NCLH | Norwegian Cruise Line Holdings Ltd. | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NYSE | Bookings, cost optimization, cruise line, Fleet, leadership transition, Liquidity, Occupancy, Pricing power, Travel Recovery | Login |
| Sep 30, 2023 | Fund Letters | Ariel Small Cap Value Strategy | AMG | Affiliated Managers Group, Inc. | Financials | Capital Markets | Bull | NYSE | alternative assets, asset management, Boutique Firms, Distribution, operational independence, partnership model, Revenue-sharing, Succession Planning | Login |
| TICKER | COMMENTARY |
|---|---|
| LIND | Luxury adventure travel company Lindblad Expeditions (LIND) was the top contributor during the quarter following a strong earnings beat, driven by robust demand, record occupancy and sustained pricing strength. Revenue, EBITDA and earnings exceeded investor expectations and management reaffirmed its full-year outlook despite weather-related disruptions, geopolitical headwinds and elevated fuel prices. Booking trends remained encouraging, with solid visibility into future demand supported by momentum in both near- and longer-term travel. The Land Experiences segment continued to perform well, adding diversification and incremental growth. With a strengthened Disney/National Geographic partnership, expanding platform and increasing scale, we see a clear path to sustained growth and multiple expansion. |
| KN | Leading provider of audio components and precision electronic devices, Knowles Corporation (KN) also advanced following a strong earnings report that exceeded revenue and profit expectations. Performance was propelled by solid execution across segments, with Precision Devices benefiting from robust demand across diverse applications and its positioning for accelerated growth. MedTech & Specialty Audio also delivered steady results with attractive margins, underscoring the resilience and quality of the business. Meanwhile, KN continued to return capital to shareholders through share repurchases. We believe the company remains well positioned due to its focus on high-value, niche markets where it holds leading positions, supported by favorable end-market dynamics and improving operational execution that provide a compelling path for sustained growth. |
| SPHR | Live entertainment, media, and technology company, Sphere Entertainment Co. (SPHR) traded higher on solid earnings and improving operating fundamentals. Strong demand for The Wizard of Oz is driving operating leverage as fixed costs are spread across higher attendance, supporting margin expansion. Momentum continues to build as the company expands concert residencies, broadens its immersive film offering and increases venue utilization. The success of the Las Vegas Sphere has continued to spark growing interest from partners seeking to develop additional locations in the U.S. and internationally, including a smaller-format Sphere planned for National Harbor and a larger venue under development in Abu Dhabi. We believe ongoing demand for the Las Vegas Sphere, combined with the opportunity to build a global network of Spheres, underpins an attractive long-term growth trajectory for the company. |
| CLB | Conversely, oil services company Core Laboratories (CLB) declined over the quarter as geopolitical tensions, weather disruptions and softer U.S. land drilling activity impacted performance. These factors weighed on revenue and margins, particularly as Middle East disruptions affected operations. While the company had previously flagged these challenges and delivered results in line with updated expectations, shares moved lower as investors focused on near-term earnings pressure. Despite this backdrop, management continued to return capital through dividends and share repurchases. In our view, CLB's global footprint and specialized services offer an attractive way to participate in future energy development cycles. |
| PBH | Shares of Prestige Consumer Healthcare (PBH) moved lower following disappointing earnings, driven primarily by ongoing supply constraints in its eye care segment and extended lead times in the Middle East. These issues weighed on revenue, EBITDA and earnings, while temporary disruptions tied to upgrades at the Pillar5 manufacturing facility further pressured performance. Despite these near-term headwinds, management continues to prioritize product quality, debt paydown and pursue strategic acquisitions, including Breathe Right and LaCorium Health, to expand into adjacent consumer health categories. Looking ahead, we believe Prestige is well positioned to navigate near-term challenges and drive long-term growth through portfolio strength, disciplined execution and targeted expansion. |
| BCO | Logistics and cash management services provider, Brink's Company (BCO), also underperformed, despite posting an earnings beat and reaffirming its full-year outlook. Cost pressures were largely contained, while underlying performance remained solid—with growth across key businesses and continued momentum in ATM Managed Services and Digital Retail Solutions. Still, the market reacted negatively to the announced acquisition of NCR Atleos because of the financial leverage and potential integration risk. In our view, BCO's long-term story remains compelling. The pending NCR Atleos acquisition is expected to expand scale and strengthen the company's position in outsourced cash and payment infrastructure. Supported by resilient operations and a consistent execution track record, we believe the market is underappreciating the company's long-term earnings power. |
| HAE | Also during the quarter, we initiated a position in Haemonetics Corporation (HAE), a developer and distributor of a broad portfolio of hematology products and solutions. The company operates across three primary segments: Plasma, Blood Center and Hospital. The Plasma segment provides automated plasma collection systems and donor management software, while the Blood Center segment offers apheresis-based technologies that enable the collection, filtration and separation of blood components, returning remaining elements safely to the donor. The Hospital segment encompasses interventional technologies such as vascular closure devices and sensor-guided systems alongside comprehensive blood management solutions. With management's continued emphasis on life-sustaining healthcare applications, we believe Haemonetics stands to benefit from favorable demographic trends, rising demand for plasma-based therapies and continued innovation in critical care technologies. |
| MAS | We added Masco Corporation (MAS), the world's largest manufacturer of plumbing fixtures and a leading provider of paint in the United States. The company benefits from a portfolio of differentiated brands, including well-recognized leaders such as Behr paint, Delta faucets and Hansgrohe shower systems, alongside complementary offerings like AXOR premium faucets and KILZ primer. Following the divestiture of its more cyclical windows and cabinets businesses, Masco has sharpened its focus on higher-quality segments where it enjoys meaningful scale, strong brand equity and operational advantages. We expect these attributes combined with deep technical expertise and a well-established supply chain to support continued margin expansion in its core paint and plumbing businesses. In addition, Masco's longstanding relationship with Home Depot is likely to further strengthen its professional paint segment, while its broad distribution and channel penetration should drive sustained growth within plumbing. |
| KMT | By comparison, we exited specialty cutting tool insert maker, Kennametal, Inc. (KMT) on valuation. |
| NVT | We successfully sold out of global leader in electrical protection and connection solutions, nVent Electric plc (NVT) as the name grew beyond the upper limit of Ariel Small Cap Value's capitalization range in the quarter. |
| HCKT | We also exited niche IT consulting firm Hackett Group, Inc. (HCKT) to pursue other opportunities. |
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