Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st March 2026
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.63% | 0.92% | 0.92% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.63% | 0.92% | 0.92% |
Ariel Small Cap Value posted a +0.92% net return in Q1 2026, trailing the Russell 2000 Value Index's +4.96% return amid volatile market conditions driven by escalating Middle East conflict that pushed energy prices higher and revived inflation concerns. The fund's top contributors included Generac Holdings, which benefited from investor recognition of its evolution to a critical power infrastructure provider driven by AI and data center demand, and Lindblad Expeditions, which advanced on strong cruise recovery trends. Detractors included Norwegian Cruise Line, facing operational challenges under new leadership, and Mattel, pressured by soft consumer demand and tariff uncertainty. The manager maintains a cautious outlook for the remainder of 2026, citing rising recession risks from trade policy uncertainty and geopolitical tensions, while emphasizing their disciplined, long-term approach focused on durable business models and strong balance sheets to navigate uncertainty and capture opportunities as market leadership evolves.
Ariel maintains a patient, long-term perspective grounded in private market value discipline, believing that periods of stress widen the disconnect between price and value, particularly for companies with sustainable earnings power and that investment opportunities grow when uncertainty is elevated and risk appetite is limited.
We approach the remainder of the year with a measured and increasingly cautious outlook for U.S. stocks. While moderating inflation in select areas and generally resilient corporate fundamentals offer pockets of support, recession risks have risen amid persistent trade policy uncertainty and ever-growing geopolitical tensions.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| 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 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 |
|---|---|---|---|---|---|---|---|---|---|---|
| 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 | KMT US | Kennametal, Inc. | Consumer Discretionary | Machinery | Bull | NYSE | dividends, growth, Industrials, machinery, manufacturing, Reshoring, valuation | 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 |
| 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 | 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 | 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 |
| 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 | 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 | 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 | 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 | 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 |
| 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 |
| 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 |
| 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 | 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 | 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 | 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 | 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 | 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 |
| 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 | 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 |
| 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 | 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 | 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 | 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 | 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 | PARA | Paramount Global | Communication Services | Media | Bull | NASDAQ | content library, entertainment, Linear TV, media, merger, Paramount+, Streaming, turnaround | 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 |
| 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 | MGPI | MGP Ingredients, Inc. | Consumer Staples | Distillers & Vintners | Bull | NASDAQ | Acquisitions, Branded Spirits, contract manufacturing, margin expansion, premium brands, premiumization, Spirits Manufacturing, Whiskey | 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 | 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 | 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 | 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 |
| 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 | 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 | 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 | 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 | 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 |
| 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 | 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 | 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 |
| TICKER | COMMENTARY |
|---|---|
| GNRC | Leading global manufacturer of power generation equipment, Generac Holdings (GNRC) was the top contributor this quarter as investors looked beyond near-term earnings softness toward the company's long-term growth potential. At investor day, management highlighted a multi-year growth trajectory supported by powerful tailwinds including rising electricity demand, higher power costs, grid reliability challenges and rapid growth in AI and data centers. Generac reaffirmed its 2026 outlook and introduced a three-year plan through 2028 targeting strong revenue growth, margin expansion and nearly 90% EBITDA growth. Strength in the Commercial & Industrial (C&I) segment, fueled by increasing data center and hyperscaler demand and a growing backlog, further boosted confidence. We believe investors are increasingly recognizing Generac's evolution from a home backup leader to a critical power infrastructure provider. We believe a durable residential base and expanding C&I opportunity driving sustained growth should drive higher margins and strong free cash flow. |
| LIND | Luxury adventure travel company Lindblad Expeditions (LIND) also advanced following an earnings beat, as cruise occupancy continues to recover and pricing remains strong. Near-term profitability was tempered by planned investments in fleet maintenance, marketing and the expanded Disney partnership, as well as higher fuel costs. We view these cost pressures and investments as intentional and strategic, positioning the company to support long-term demand, enhance brand equity and drive sustainable growth. The Land Experiences segment continues to scale, supported by recent acquisitions that diversify revenue and reduce seasonal cash flow volatility. Looking ahead, we see management's full year 2026 outlook as conservative given booking trends, expanded fleet capacity and the growing earnings contribution from land based offerings. With a strengthened Disney/National Geographic partnership, an expanded branded platform and increasing scale, we believe Lindblad is well positioned for long-term multiple expansion. |
| LFUS | Additionally, shares of leading supplier of circuit protection products, Littelfuse, Inc. (LFUS) rose after issuing solid revenue and earnings guidance, signaling a recovery in its core Electronics business. Littelfuse's circuit protection and high voltage power solutions are benefiting from increased demand from data centers and utility infrastructure. While some end markets remain uneven, management noted improving industrial trends and continued share gains in higher value applications. Under new leadership, the company is focusing on its most strategic, higher return platforms while streamlining less differentiated areas. With improving cyclical conditions, an expanding data center opportunity and disciplined capital allocation, we believe Littelfuse is positioned for durable growth and long-term shareholder value. |
| NCLH | Alternatively, shares of Norwegian Cruise Line Holdings Ltd. (NCLH) declined during the quarter after earnings guidance came in below investor expectations. The results reflect a transitional period under new leadership as the company works through residual operational inefficiencies and a higher cost environment, including elevated fuel expenses. Booking trends were uneven, while pricing pressures and economic uncertainty weighed on sentiment. Although we believe recent board changes and increased shareholder engagement are constructive, the market has remained focused on near-term cost and execution risks rather than the longer-term benefits of improving governance and strategic realignment. Importantly, premium brands at the higher end of the portfolio—particularly Oceania Cruises—are showing materially improved booking trends, reinforcing the company's brand strength and pricing power. In addition, Norwegian maintains solid liquidity and continues to make progress reducing debt to investment grade status, an important driver of long-term shareholder value. |
| MAT | Toy manufacturer, Mattel, Inc. (MAT) detracted from performance during the quarter after reporting weaker-than-expected earnings and guidance amid soft consumer demand. Results were also pressured by tariff uncertainty and elevated promotions, which pinched margins. During the period, management outlined a package of strategic investments aimed at reigning growth, with a focus on digital gaming, direct to consumer capabilities and brand initiatives that go beyond traditional toys. While these investments are expected to drag down near-term profits, management anticipates they will ultimately generate attractive returns and become self-funding in 2027. Combined with ongoing cost efficiency efforts and a meaningful stock buy-back program, we believe the market is underestimating Mattel's ability to unlock value from its iconic intellectual property through higher margin content, entertainment and brand extensions. In our view, the stock remains undervalued because this long-term monetization potential has yet to be reflected in today's share price. |
| BCO | Finally, shares of logistics and cash management services provider, Brink's Company (BCO) traded sharply lower during the period despite stronger than expected revenue and earnings growth as well as continued momentum in its ATM Managed Services and Digital Retail Solutions businesses. The decline followed the announced acquisition of NCR Atleos, which raised investor concerns around increased leverage, potential dilution and near-term free cash flow pressure. With an expected close in early 2027, the combination more than doubles Brink's growth opportunity in ATM Managed Services. Meanwhile, the cost synergies would be accretive to EPS. Given its core business resilience and management's strong track record of execution, we believe the market is underappreciating the company's long-term earnings power. |
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