| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.32% | 13.71% | - |
Ariel Appreciation Fund returned 13.71% in Q2 2026, outpacing the Russell Midcap Value Index but slightly trailing the Russell Midcap Index. U.S. equities rebounded sharply as easing geopolitical tensions, lower oil prices, and resilient corporate earnings supported the advance, with leadership returning to growth-oriented sectors. Top contributors included Knowles Corporation, which exceeded revenue and profit expectations with strong execution across segments, and Generac Holdings, which raised full-year guidance driven by data center demand and a global hyperscaler supply agreement. Madison Square Garden Entertainment advanced on concert strength and sponsorship growth. Detractors included Core Laboratories and SLB Limited, pressured by geopolitical tensions and softer drilling activity, and Prestige Consumer Healthcare, impacted by supply constraints. The fund initiated positions in Haemonetics, Houlihan Lokey, Masco, Progressive, and Royal Caribbean, while exiting Stanley Black & Decker, ADT, and Molson Coors to redeploy capital into higher conviction opportunities. The fund enters the second half with a measured outlook, focused on long-term value creation through bottom-up research emphasizing durable business models, strong balance sheets, and sustainable competitive advantages despite near-term macro uncertainty.
Ariel Appreciation Fund seeks to own high-quality mid-cap businesses at attractive valuations with durable competitive advantages, strong balance sheets, and capable management teams, focusing on long-term value creation through rigorous bottom-up fundamental research and valuation discipline.
The fund enters the second half of 2026 with a measured outlook, acknowledging modest and uneven global growth, ongoing geopolitical tensions, and concentrated market leadership in large-cap technology. Despite near-term macro uncertainty, the fund remains focused on long-term value creation through rigorous bottom-up research, emphasizing durable business models, strong balance sheets, capable management teams, and sustainable competitive advantages. The fund seeks to navigate near-term uncertainty while capitalizing on opportunities as market leadership broadens and company-specific fundamentals become increasingly important drivers of returns.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 15 2026 | 2026 Q2 | ADT, CLB, GNRC, HAE, HLI, KN, MAS, MSGE, PBH, PGR, RCL, SLB, SWK, TAP | Capital markets, Data centers, energy, healthcare, insurance, mid cap, US, value |
KN GNRC MSGE CLB PBH SLB HAE HLI MAS PGR RCL |
Ariel Appreciation Fund returned 13.71% in Q2 2026, driven by strong performance from Knowles, Generac, and Madison Square Garden Entertainment. The fund added five new positions including Haemonetics, Houlihan Lokey, Masco, Progressive, and Royal Caribbean, while exiting three names to redeploy capital. Despite concentrated market leadership and geopolitical uncertainty, the fund remains focused on owning high-quality mid-cap businesses at attractive valuations with durable competitive advantages. |
| Apr 16 2026 | 2026 Q1 | GNRC, KEYS, KKR, KMT, MAT, NCLH, RLI, SLB | AI, Data centers, energy, Geopolitical, mid cap, value | - | Ariel Appreciation Fund gained 1.14% in a volatile Q1 2026 marked by Middle East conflict and inflation concerns. AI infrastructure beneficiaries Generac and Keysight led performance while consumer-facing Mattel and KKR detracted. The fund maintains its patient, long-term value discipline focused on high-quality businesses trading below intrinsic value, emphasizing fundamentals over macro forecasting amid rising recession risks. |
| Jan 18 2026 | 2025 Q4 | CRL, FDS, FISV, GNRC, GNTX, IPG, MSGE, OMC, SPHR | Automotive, Biotechnology, Data centers, Entertainment, Financial Services, mid cap, technology, value |
SCHR CRL MSGE FISV GNRC FDS OMC |
Ariel Appreciation Fund outperformed mid-cap benchmarks in Q4 2025 with strong contributions from entertainment and biotech holdings. The fund maintains a cautious 2026 outlook amid market concentration and volatility concerns, emphasizing disciplined value investing in quality companies with durable competitive advantages and strong balance sheets positioned for long-term growth. |
| Oct 15 2025 | 2025 Q3 | FI, GS, KMX, KN, MAT, PBH, PSKY, REZI, SPHR | consumer, Entertainment, financials, mid cap, small caps, technology, value |
REZI SPHR KN KMX MAT FISV PBH |
Ariel Appreciation Fund outperformed significantly in Q3 2025 with +9.51% returns, driven by strong performance from undervalued holdings like Resideo and Sphere Entertainment. The manager maintains pro-cyclical positioning focused on undervalued mid-cap businesses, seeing compelling opportunities in small-cap equities trading at historically attractive discounts to large caps. |
| Jul 17 2025 | 2025 Q2 | BWA, CLB, FI, GS, KMX, NTRS, NVT, SLB, SPHR, ZBH | AI, Financial Services, mid cap, Oil Services, small caps, tariffs, Trade Policy, value |
CLB KMX FI GS NTRS SPHR NVT CLB SLB KMX FI GS |
Ariel Appreciation Fund returned +5.81% in Q2 2025 despite extreme volatility from tariff announcements and AI-driven recovery. The fund maintains pro-cyclical positioning in undervalued mid-caps, adding Fiserv and Goldman Sachs while facing headwinds in oil services. Small caps trade at dot-com boom discount levels, positioning for potential outperformance as market rally broadens beyond AI. |
| Mar 31 2025 | 2025 Q1 | AAPL, ADT, AMZN, BIO, GOOGL, GS, KN, MAT, META, MIDD, MSFT, MTN, NCLH, NOV, NVDA, OSW, SLB, TSLA, WBA | Buybacks, mid cap, Recession, Recovery, value, volatility |
MAT MIDD ADT BIO KN NCLH OSW SLB |
Ariel Appreciation Fund fell 6.94% in Q1 2025 amid market volatility from tariff fears and policy uncertainty. The fund actively acquired quality companies at significant discounts to private market values, adding positions in cruise operators and oilfield services while trimming others. Management views current market dislocations as creating attractive long-term opportunities for patient value investors. |
| Dec 31 2024 | 2024 Q4 | AAPL, AMZN, CG, GOOGL, GS, IPG, META, MSFT, MSGE, NTRS, NVDA, OMC, SWK, TSLA, WBA | Deregulation, discount, Election, financials, mid cap, value |
GS NTRS CG SWK MSGE IPG WBA |
Ariel Appreciation Fund's value strategy delivered modest outperformance versus its value benchmark in Q4 despite negative returns. Financial holdings Goldman Sachs, Northern Trust, and Carlyle benefited from post-election optimism around deregulation and increased capital market activity. The team maintains conviction in their disciplined approach to owning quality businesses at discounted valuations. |
| Sep 30 2024 | 2024 Q3 | CBRE, CLB, LAZ, NOV, SCHW, SRCL, SWK, WBA | Buybacks, earnings, free cash flow, interest rates, mid cap, value |
SWK LAZ CBRE NOV CLB SCHW |
Ariel Appreciation Fund gained 9.90% in Q3 as value outperformed growth and small caps beat large caps. Strong earnings from Stanley Black & Decker and Lazard drove performance while oil services names lagged despite solid fundamentals. The fund expects market broadening beyond mega-caps to benefit their differentiated mid-cap value strategy. |
| Jul 31 2024 | 2024 Q2 | CLB, CRL, GS, MAT, MIDD, SRCL, WBA, WM | AI, consumer, energy, financials, healthcare, mid cap, value |
CLB GS WBA CRL AMAT MIDD |
Ariel Appreciation Fund fell 6.56% in Q2 as AI stocks dominated while mid-caps declined. Energy services and investment banking drove gains, while retail pharmacy and biotech faced headwinds. The manager remains focused on undervalued mid-cap companies with strong fundamentals, expecting the mega-cap versus mid-cap performance gap to narrow as rates decline. |
| Apr 15 2024 | 2024 Q1 | BIO, KN, LAZ, MSGE, NVST, NVT, SNA, WBA | AI, earnings, Electrical, Entertainment, healthcare, mid cap, value |
NVT LAZ MSGE WBA KN NVST BIO |
Ariel's mid-cap value fund underperformed in Q1's AI-driven rally but maintains conviction in discounted quality companies. Strong performers like nVent and MSGE offset weakness in Walgreens and Envista. Management remains cautiously optimistic, expecting mid-cap outperformance as rate cuts narrow the mega-cap premium while standing ready for pullback opportunities. |
| Jan 31 2024 | 2023 Q4 | BWA, CG, CLB, KKR, MAT, SCHW | Alternative Asset Managers, Electric Vehicles, Financial Services, mid cap, Oil Services, Toymakers, value |
ACGL KKR SCHW CLB AMAT BWA |
Ariel Appreciation Fund returned 10.70% in Q4 2023, led by alternative asset managers KKR and Carlyle but weighed down by oil services and auto parts holdings. The manager expects declining rates in 2024 to benefit mid-cap stocks relative to mega-caps, maintaining their patient, long-term approach focused on quality businesses with strong fundamentals. |
| Mar 10 2023 | 2023 Q3 | AXTA, GNRC, IPG, KKR, MAT, NOV | Advertising, Asset Managers, energy, Entertainment, mid cap, Power Equipment, value |
AMAT APA|C|FFIV|KHC|NOV|UNH KKR IPG GNRC AXTA |
Ariel Appreciation Fund fell 6.48% in Q3 as markets declined on rate and economic concerns. Mattel led gains from Barbie movie success while NOV and KKR advanced on strong earnings. Interpublic, Generac and Axalta weighed on performance. Management maintains conviction in differentiated businesses with strong balance sheets, viewing volatility as long-term opportunity. |
| Jun 30 2023 | 2023 Q2 | CAH, CBRE, CCL, CG, CRL, GS, IPG, KMT, KMX, LABH, LESL, MAT, MSGE, NCLH, NTRS, PARA, RCL, SCHW, SPHR, SWK | contrarian, Cruises, mid cap, real estate, Recovery, value | - | Ariel Appreciation Fund's contrarian value strategy delivered strong Q2 results as previously scorned holdings like cruise lines became top performers. The fund continues buying quality companies during periods of pessimism, recently adding Carlyle Group and re-entering Paramount Global. Management sees opportunities in real estate-related names amid interest rate fears while emphasizing high-quality, low-debt companies for the current environment. |
| Mar 31 2023 | 2023 Q1 | CAH, CBRE, CCL, CG, Gold, LESL, MOS, MSGE, NCLH, NTRS, ORCL, PARA, RCL, SNA, SPHR, ZIMV | contrarian, Cruises, mid cap, real estate, Recovery, value | - | Ariel Appreciation Fund's contrarian value strategy paid off in Q2 2023 with a +5.04% return, led by cruise line recoveries and opportunistic buying in distressed real estate. The fund continues shopping in out-of-favor sectors, adding Carlyle Group and re-initiating Paramount Global while maintaining focus on long-term intrinsic value over market sentiment. |
| May 3 2023 | 2022 Q4 | BOKF, CG, ZBRA | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
Data CentersGenerac Holdings announced a global supply agreement with a leading hyperscaler, reinforcing its expanding role in critical power infrastructure for data centers. The company's Commercial & Industrial segment showed strong demand from data centers with a growing backlog and visibility through 2027. This positions Generac as a diversified, mission-critical power solutions platform with expanding exposure to data center infrastructure. |
Power Infrastructure Hyperscaler Critical Power Commercial & Industrial |
Energy TransitionThe fund discussed the energy sector through the lens of oil services companies Core Laboratories and SLB Limited. While near-term headwinds from geopolitical tensions and softer drilling activity impacted performance, management at SLB believes there will be a broad-based recovery in demand in 2027 and 2028 as countries rebuild reserves and diversify sources of energy beyond the Middle East. The fund views these companies as ways to participate in future energy development cycles. |
Oil Services Energy Development Diversification Reserves | |
HealthcareThe fund initiated a position in Haemonetics Corporation, a developer and distributor of hematology products and solutions operating across Plasma, Blood Center, and Hospital segments. Management's emphasis on life-sustaining healthcare applications positions Haemonetics to benefit from favorable demographic trends, rising demand for plasma-based therapies, and continued innovation in critical care technologies. |
Hematology Plasma Medical Devices Critical Care | |
Capital MarketsThe fund purchased Houlihan Lokey Inc., a global financial advisory firm with a leading position in middle-market M&A and restructuring. The firm is differentiated by strong client relationships, a diversified business model, and countercyclical restructuring capabilities. The fund views recent geopolitical uncertainty and market volatility that pressured shares as transient and believes HLI is well positioned to deliver durable growth. |
M&A Restructuring Advisory Middle Market | |
Auto InsuranceThe fund re-purchased Progressive Corporation, describing it as one of the highest-quality compounders in financial services. Progressive consistently gains market share through superior underwriting, pricing analytics, and technology, with disciplined risk selection enabling industry-leading profitability while growing policies faster than peers. The fund sees multiple drivers of durable earnings growth including a long runway to expand in the large U.S. auto insurance market and higher investment income from its insurance float. |
Underwriting Market Share Pricing Analytics Insurance Float | |
CruisesThe fund bought Royal Caribbean Group, the world's second-largest cruise operator, citing high barriers to entry, durable demand, and meaningful scale advantage representing nearly a quarter of global cruise capacity. The resilience of the core cruise consumer, coupled with management's demonstrated operational excellence, positions RCL to sustain its strong growth trajectory and further solidify its leadership within the global cruise industry. |
Cruise Operator Barriers to Entry Consumer Resilience Scale Advantage | |
Building ProductsThe fund added Masco Corporation, the world's largest manufacturer of plumbing fixtures and a leading provider of paint in the United States. Following divestiture of 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. The fund expects 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. |
Plumbing Fixtures Paint Brand Equity Margin Expansion | |
EntertainmentMadison Square Garden Entertainment advanced following better-than-expected results fueled by continued strength in concerts and solid growth in sponsorship and advertising. The fund's thesis centers on MSGE's ownership of iconic, irreplaceable venues with strong pricing power and high barriers to entry. A robust event pipeline, including marquee residencies and flagship productions like The Christmas Spectacular, supports sustained growth and cash flow visibility. |
Live Entertainment Venues Concerts Pricing Power | |
| 2026 Q1 |
AIAI infrastructure investment is driving demand for Keysight's test and measurement solutions as customers push performance limits in speed, reliability and scale. Rising complexity of next generation AI technologies increasingly requires precise measurement and validation, making Keysight's solutions mission critical. |
Infrastructure Networking Data Centers Testing |
Data CentersGenerac is benefiting from rapid growth in AI and data centers, with strength in the Commercial & Industrial segment fueled by increasing data center and hyperscaler demand. The company highlighted rising electricity demand and grid reliability challenges as key growth drivers. |
Power Generation Grid Infrastructure Electricity | |
EnergyEnergy sector performance was driven by escalating Middle East conflict that pushed energy prices higher and disrupted global supply chains. SLB advanced as investors grew confident in the company's resilient international growth profile and improving conditions across key international markets. |
Oil Services International Geopolitical Supply Chain | |
| 2025 Q4 |
AIArtificial intelligence continued to fuel outsized gains in Technology sector. Structural trends in AI adoption are contributing to productivity gains and shifting competitive positioning across industries, though benefits are unevenly distributed. |
Technology Productivity Infrastructure |
EntertainmentLive entertainment companies showed strong performance with robust consumer demand. Sphere Entertainment was top contributor with strengthening fundamentals from The Wizard of Oz success. Madison Square Garden Entertainment outperformed on strong concert demand and healthy sponsorship sales. |
Live Events Consumer Demand Venues | |
PaymentsFiserv experienced pullback as new CEO reset growth expectations and announced leadership changes. Management is recalibrating operations to emphasize growth and client value, though 2026 likely serves as transition year. |
FinTech Digital Payments Technology | |
BiotechnologyCharles River Laboratories traded higher on solid quarterly results, reinforcing position as leader in outsourced drug development services. While biotech funding and pharma budgets have moderated, outsourcing demand remains resilient. |
Drug Development Outsourcing Clinical | |
| 2025 Q3 |
ValueThe fund focuses on undervalued businesses with long-term growth potential. Multiple holdings are described as undervalued including Sphere Entertainment, Resideo Technologies, and Mattel. The manager emphasizes compelling value in small-cap equities and select cyclicals trading at historically attractive levels. |
Undervalued Discount Mispriced Attractive Compelling |
Small CapsThe manager sees compelling value in small-cap equities trading at historically attractive levels. Consensus earnings projections suggest the Russell 2000 Index may outpace the Russell 1000 Index over the next two years, with small caps currently trading at one of the steepest discounts to large caps since the dot-com era. |
Russell 2000 Discount Outperformance Historically Attractive Performance Gap | |
EntertainmentSphere Entertainment represents a compelling long-term opportunity with its Las Vegas venue and scalable franchise potential. The company is scaling concert residencies and launching the capital-light Sphere Network of smaller immersive venues domestically while driving higher utilization across show types. |
Live Entertainment Immersive Venues Scalable Franchise | |
| 2025 Q2 |
AIReignited enthusiasm for artificial intelligence themed stocks helped drive U.S. indices to new all-time highs during the quarter recovery. The manager expects the current market rally to broaden beyond the AI trade with support from tax cuts and deregulation. |
Artificial Intelligence Technology Growth Market Rally |
Trade PolicyLiberation Day tariff announcement pushed the S&P 500 to the brink of bear market territory in early April before being put on pause. The manager notes tariff exposure concerns across portfolio companies and expects heightened volatility from policy uncertainty and geopolitical risks. |
Tariffs Policy Volatility Geopolitical | |
Oil ServicesOil services companies faced headwinds from falling oil prices, trade tensions, and weak macroeconomic conditions. However, the manager sees medium-term tailwinds from national oil companies investing in long-cycle projects and natural production decline requiring capacity growth. |
Oilfield Services Energy International Capacity | |
Financial ServicesThe manager added financial technology leader Fiserv and repurchased Goldman Sachs, viewing both as best-in-class franchises with strong competitive positions. Northern Trust also performed well on strong earnings and merger rumors. |
FinTech Investment Banking Payments Technology | |
Small CapsSmall cap stocks are trading at their biggest discount to large cap shares since the dot-com boom. Consensus earnings estimates suggest the Russell 2000 could significantly outpace the Russell 1000 over the next two years as the performance gap narrows. |
Russell 2000 Valuation Discount Outperformance | |
| 2025 Q1 |
ValueFund actively acquiring downtrodden shares of quality companies trading at significant discounts to private market values. Holdings are statistically cheap and trading at meaningful discounts to intrinsic worth. Past dislocations of this magnitude have often served as prelude to robust recoveries. |
Value Discount Intrinsic Recovery Cheap |
CruisesInitiated position in Norwegian Cruise Line Holdings despite sector decline on tax concerns. Company continues delivering robust earnings with strong consumer demand, healthy onboard spending, attractive pricing and sustained progress on leverage reduction. Risks currently priced in presenting attractive entry point. |
Cruises Travel Consumer Leisure Recovery | |
Oil ServicesPurchased Schlumberger, the largest oilfield services company, at attractive entry point amid weak near-term demand and falling commodity prices. Company's scale and technical expertise are key differentiators with tailwinds supporting rising medium-term demand as national oil companies invest in long-cycle projects. |
Oil Services Energy Commodities Cyclical Recovery | |
| 2024 Q4 |
ValueThe fund focuses on investing in companies trading at significant discounts to private market value estimates. Multiple holdings including MSGE and CG are described as trading at healthy discounts to intrinsic value. |
Discount Intrinsic Private Market Undervalued Valuation |
Capital MarketsThe fund holds financial services companies positioned to benefit from increased capital market activity. Goldman Sachs delivered strong results across investment banking and trading, while Carlyle expects increased capital market activity following the election. |
Investment Banking Trading Asset Management Fee Growth Activity | |
| 2024 Q3 |
ToolsStanley Black & Decker delivered robust quarterly earnings with positive organic revenue growth in Tools and Outdoor segment for the first time since late 2021. The company's transformation initiatives remain on track with margin expansion from sourcing initiatives and productivity improvements. |
Tools Transformation Margins |
Capital MarketsLazard showed solid performance driven by momentum in advisory business and improving macro conditions. The asset management segment faces headwinds but rate cuts should increase demand for active strategies. The firm aims to double revenue by 2030 through double-digit annual growth. |
Advisory Asset Management Revenue Growth | |
Commercial Real EstateCBRE advanced on earnings beat and raised guidance as more stable interest rates improved transactional Advisory Services. Global Workplace Solutions continued to thrive in property management following onboarding of Brookfield's U.S. office portfolio. |
Property Management Advisory Services Office | |
Oil ServicesNOV delivered earnings beat with rising offshore and international demand, strong backlog conversion and robust free cash flow. Core Laboratories faced headwinds from volatile macro environment and softening U.S. onshore activity but projects international growth from Middle East, Asia Pacific and West Africa. |
Offshore International Backlog | |
Retail BrokerageCharles Schwab fell as investors focused on declining transactional cash balances and earnings impact. The company plans to increase third-party bank usage while prioritizing balance sheet for customer lending to provide extended FDIC insurance and improve liquidity. |
Cash Balances FDIC Lending | |
| 2024 Q2 |
AIThe bull market was powered by investor enthusiasm for artificial intelligence themed stocks, creating a narrow momentum-driven rally. AI-themed stocks continue to dominate markets this year, contributing to extreme market bifurcation where non-AI companies in the S&P 500 lost 1.2%. |
Artificial Intelligence Technology Momentum Growth |
Oil ServicesCore Laboratories delivered strong results with international demand for laboratory services and completion diagnostic solutions. Management projects international growth from projects in the Middle East, Asia Pacific and West Africa despite flat U.S. onshore drilling activity. |
Energy Services International Drilling Completion | |
BiotechnologyCharles River Laboratories faced headwinds from cautious funding for early-stage R&D programs but delivered solid earnings with growth in research models and manufacturing solutions. The company is investing in cell and gene therapy capabilities for long-term value creation. |
Drug Discovery Research Gene Therapy Biopharmaceuticals | |
| 2024 Q1 |
AIInvestor enthusiasm around artificial intelligence drove broad-based market rally in Q1. AI-themed mega-cap stocks showed exuberance that may eventually prove excessive, though patient investors focus on fundamentals over market psychology. |
Artificial Intelligence Mega Cap Technology |
Electrical EquipmentnVent Electric benefited from secular trends toward increased electrification and data center development. The company continues executing on global strategy focused on high-growth verticals and innovation in electrical protection solutions. |
Electrification Data Centers Infrastructure | |
EntertainmentMadison Square Garden Entertainment advanced on robust earnings driven by increased concerts and strong demand for live entertainment. Management raised 2024 guidance and expects low-double-digit increase in event bookings. |
Live Entertainment Venues Events | |
| 2023 Q4 |
Alternative Asset ManagersBoth KKR and Carlyle delivered strong performance with positive investment results across product lines. KKR showed improving trends in fundraising, deployment and monetization, while Carlyle demonstrated early execution on strategic initiatives with continued growth and margin expansion expected. |
Private Equity Asset Management Fundraising Deployment Monetization |
Electric VehiclesBorgWarner faced headwinds from slower EV adoption and launch delays, but management still expects over $10 billion in annual EV sales by 2027. The company remains well positioned to benefit from low-emission, combustion and hybrid vehicle offerings during the market evolution. |
EV Adoption Auto Parts Hybrid Vehicles Electric Vehicle Sales | |
| 2023 Q3 |
EnergyNOV Inc. advanced following strong earnings as improving offshore drilling demand leads to higher day rates and longer contract terms. The company is deploying new digital, low emissions fracking equipment and rig automation to enhance drilling efficiency, while winning international projects including Saudi Aramco's 10-year rig building plan. |
Offshore Drilling Oil Equipment Energy Trading |
EntertainmentMattel was the top contributor following solid earnings and maintained guidance despite challenging retail environment. The successful Barbie movie is expected to generate over $125 million in gross billings from film royalty payments while boosting franchise consumer products, highlighting progress in expanding entertainment offerings. |
Media Toymakers Entertainment | |
Alternative Asset ManagersKKR traded higher following solid earnings in a challenging market environment, supported by steady fundraising and transaction fees. The firm possesses size and organizational structure to benefit from high institutional interest in alternative assets and has plenty of dry powder to invest opportunistically. |
Capital Markets Asset Managers Alternative Asset Managers | |
| 2023 Q2 |
CruisesCruise operators are posting record revenues and bookings as cruising is seen as a high-value alternative to land travel for retirees and younger people alike. The vacation and leisure spaces are booming in direct response to the isolating Covid lock downs, with memories having more value than goods for many consumers. |
Travel Leisure Recovery Bookings Revenue |
ValueThe fund emphasizes buying when others are selling, focusing on contrarian investments in companies trading at significant discounts to intrinsic worth. They view current market dislocations as creating ripe buying opportunities for long-term, patient investors. |
Contrarian Discounts Intrinsic Patient Opportunities | |
Commercial Real EstateWidespread disdain for real estate and real estate related companies in a higher interest rate environment is creating a bevy of investment opportunities. The managers see this as today's bad neighborhood offering good stocks at attractive valuations. |
Interest Rates Opportunities Valuations Distressed Contrarian | |
| 2023 Q1 |
CruisesCruise operators are posting record revenues and bookings as cruising is seen as a high-value alternative to land travel. The vacation and leisure spaces are booming in direct response to isolating Covid lockdowns, with memories having more value than goods for many consumers. |
Travel Leisure Recovery Bookings Revenue |
ValueThe fund emphasizes buying when others are selling, focusing on companies trading at significant discounts to intrinsic worth. Many industry-leading companies considered cyclical are trading at attractive valuations despite being economically sensitive. |
Contrarian Discounts Intrinsic Cyclical Undervalued | |
Commercial Real EstateWidespread disdain for real estate and real estate related companies in a higher interest rate environment offers a bevy of investment opportunities. The sector represents today's bad neighborhood with good stocks available at compelling valuations. |
Interest Rates Distressed Opportunities Valuations Sector |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 15, 2026 | Fund Letters | Ariel Appreciation Fund | KN | Knowles Corporation | Electronic Components | Electronic Components | Bull | New York Stock Exchange | Audio Technology, Electronic Components, Medtech, Niche markets, Operational Execution, Precision Devices, share repurchases, Specialty Audio | Login |
| Jul 15, 2026 | Fund Letters | Ariel Appreciation Fund | GNRC | Generac Holdings | Specialty Industrial Machinery | Electrical Components & Equipment | Bull | New York Stock Exchange | backup power, Commercial Industrial, critical infrastructure, data centers, hyperscaler, Mission-Critical, operating leverage, Power generation | Login |
| Jul 15, 2026 | Fund Letters | Ariel Appreciation Fund | MSGE | Madison Square Garden Entertainment | Entertainment | Entertainment | Bull | New York Stock Exchange | advertising, Asset backed, barriers to entry, Concerts, Iconic Venues, Live entertainment, Pricing power, Sponsorship | Login |
| Jul 15, 2026 | Fund Letters | Ariel Appreciation Fund | CLB | Core Laboratories | Oil & Gas Equipment & Services | Oil & Gas Equipment & Services | Bull | New York Stock Exchange | Cyclical, dividends, Energy Development, geopolitical risk, global footprint, Oil Services, share repurchases, Specialized Services | Login |
| Jul 15, 2026 | Fund Letters | Ariel Appreciation Fund | PBH | Prestige Consumer Healthcare | Drug Manufacturers - Specialty & Generic | Personal Products | Bull | New York Stock Exchange | Consumer healthcare, debt paydown, Eye Care, manufacturing, OTC Products, portfolio expansion, strategic acquisitions, turnaround | Login |
| Jul 15, 2026 | Fund Letters | Ariel Appreciation Fund | SLB | SLB Limited | Oil & Gas Equipment & Services | Oil & Gas Equipment & Services | Bull | New York Stock Exchange | capital returns, Cyclical Recovery, energy diversification, geopolitical, global scale, market leader, oilfield services, strong balance sheet | Login |
| Jul 15, 2026 | Fund Letters | Ariel Appreciation Fund | HAE | Haemonetics Corporation | Medical Devices | Health Care Equipment | Bull | New York Stock Exchange | Apheresis, Blood Management, Critical Care, Demographics, Healthcare Equipment, Hematology, Medical devices, Plasma Collection | Login |
| Jul 15, 2026 | Fund Letters | Ariel Appreciation Fund | HLI | Houlihan Lokey Inc. | Capital Markets | Investment Banking & Brokerage | Bull | New York Stock Exchange | Client Relationships, countercyclical, Diversified, Financial advisory, investment banking, M&A Advisory, Middle Market, restructuring | Login |
| Jul 15, 2026 | Fund Letters | Ariel Appreciation Fund | MAS | Masco Corporation | Building Products & Equipment | Building Products | Bull | New York Stock Exchange | brand portfolio, Building Products, Distribution, Home Depot, home improvement, margin expansion, Paint, Plumbing Fixtures | Login |
| Jul 15, 2026 | Fund Letters | Ariel Appreciation Fund | PGR | Progressive Corporation | Insurance - Property & Casualty | Property & Casualty Insurance | Bull | New York Stock Exchange | Auto Insurance, compounder, Insurance Float, market share gains, Pricing Analytics, Property & Casualty, technology, underwriting | Login |
| Jul 15, 2026 | Fund Letters | Ariel Appreciation Fund | RCL | Royal Caribbean Group | Travel Services | Hotels, Resorts & Cruise Lines | Bull | New York Stock Exchange | barriers to entry, consumer resilience, Cruise lines, Global Capacity, growth, operational excellence, scale advantage, Travel & Leisure | Login |
| Jan 18, 2026 | Fund Letters | John W. Rogers | SCHR | Sphere Entertainment Co. | Communication Services | Movies & Entertainment | Bull | New York Stock Exchange | Experiential, growth, Live entertainment, Scalability, Utilization | Login |
| Jan 18, 2026 | Fund Letters | John W. Rogers | CRL | Charles River Laboratories International, Inc. | Health Care | Life Sciences Tools & Services | Bull | New York Stock Exchange | buybacks, lifesciences, Margins, Outourcing, Pipelines | Login |
| Jan 18, 2026 | Fund Letters | John W. Rogers | MSGE | Madison Square Garden Entertainment Corp. | Communication Services | Movies & Entertainment | Bull | New York Stock Exchange | Demand, Liveevents, Pricingpower, realestate, Venues | Login |
| Jan 18, 2026 | Fund Letters | John W. Rogers | FISV | Fiserv, Inc. | Information Technology | Data Processing & Outsourced Services | Bull | New York Stock Exchange | Execution, Fintech, Payments, recurring revenue, Switchingcosts | Login |
| Jan 18, 2026 | Fund Letters | John W. Rogers | GNRC | Generac Holdings, Inc. | Industrials | Electrical Components & Equipment | Bull | New York Stock Exchange | cashflow, datacenters, Energy resiliency, Powergeneration, Secular | Login |
| Jan 18, 2026 | Fund Letters | John W. Rogers | FDS | FactSet Research Systems, Inc. | Information Technology | Data Processing & Outsourced Services | Bull | New York Stock Exchange | AI, analytics, financial data, Scalability, switching costs | Login |
| Jan 18, 2026 | Fund Letters | John W. Rogers | OMC | Omnicom Group Inc. | Communication Services | Advertising | Bull | New York Stock Exchange | advertising, analytics, consolidation, Creativity, scale | Login |
| Oct 15, 2025 | Fund Letters | John W. Rogers | REZI | Resideo Technologies Inc. | Industrials | Building Products | Bull | NYSE | Building Products, earnings, innovation, Security, Smart home, valuation | Login |
| Oct 15, 2025 | Fund Letters | John W. Rogers | SPHR | Sphere Entertainment Co. | Communication Services | Entertainment | Bull | NYSE | advertising, entertainment, expansion, growth, media, Scalability, Venues | Login |
| Oct 15, 2025 | Fund Letters | John W. Rogers | KN | Knowles Corp. | Information Technology | Electronic Components | Bull | NYSE | Devices, electronics, growth, Hearing, Margins, Repurchases, semiconductors | Login |
| Oct 15, 2025 | Fund Letters | John W. Rogers | KMX | CarMax Inc. | Consumer Discretionary | Specialty Retail | Bull | NYSE | Autos, Credit, Cyclicals, growth, Omnichannel, retail | Login |
| Oct 15, 2025 | Fund Letters | John W. Rogers | MAT | Mattel Inc. | Consumer Discretionary | Leisure Products | Bull | NASDAQ | Branding, buybacks, consumer, entertainment, growth, Margins, Toys | Login |
| Oct 15, 2025 | Fund Letters | John W. Rogers | FISV | Fiserv Inc. | Other | Financial Technology | Bull | NASDAQ | buybacks, Digital, Fintech, growth, Payments, SMB, Software | Login |
| Oct 15, 2025 | Fund Letters | John W. Rogers | PBH | Prestige Consumer Healthcare Inc. | Health Care | Pharmaceuticals | Bull | NYSE | Acquisitions, healthcare, innovation, OTC, pharmaceuticals | Login |
| Jul 17, 2025 | Fund Letters | John W. Rogers | CLB | Core Laboratories, Inc. | Energy | Oil & Gas Equipment & Services | Bull | NYSE | Cyclicality, deleveraging, diagnostics, Free Cash Flow, International, Offshore, tariffs | Login |
| Jul 17, 2025 | Fund Letters | John W. Rogers | KMX | CarMax, Inc. | Consumer Discretionary | Automotive Retail | Bull | NYSE | consumer, Credit, Inventory, Omnichannel, Scalability, Used cars, valuation | Login |
| Jul 17, 2025 | Fund Letters | John W. Rogers | FI | Fiserv, Inc. | Information Technology | Data Processing & Outsourced Services | Bull | NYSE | cross-selling, Fintech, Margins, Moat, Payments, Recurring, Volume | Login |
| Jul 17, 2025 | Fund Letters | John W. Rogers | GS | The Goldman Sachs Group, Inc. | Financials | Investment Banking & Brokerage | Bull | NYSE | buybacks, Capital markets, deleveraging, franchise, ROE, valuation, wealth management | Login |
| Jun 30, 2025 | Fund Letters | Ariel Appreciation Fund | NTRS | Northern Trust Corporation | Financials | Asset Management & Custody Banks | Bull | NASDAQ | asset management, Custody Banks, defensive, financial services, high barriers to entry, M&A Target, wealth management | Login |
| Jun 30, 2025 | Fund Letters | Ariel Appreciation Fund | SPHR | Sphere Entertainment Co. | Communication Services | Entertainment | Bull | NYSE | Consumer Discretionary, entertainment, Experiential Venues, growth, Immersive Technology, international expansion, Live entertainment | Login |
| Jun 30, 2025 | Fund Letters | Ariel Appreciation Fund | NVT | nVent Electric plc | Industrials | Electrical Components & Equipment | Bull | NYSE | data centers, electrical equipment, Electrification, Industrials, infrastructure, operational improvements, secular growth | Login |
| Jun 30, 2025 | Fund Letters | Ariel Appreciation Fund | CLB | Core Laboratories, Inc. | Energy | Oil & Gas Equipment & Services | Neutral | NYSE | Cyclical, energy, Free Cash Flow, International Growth, oilfield services, Production Enhancement, Reservoir Description | Login |
| Jun 30, 2025 | Fund Letters | Ariel Appreciation Fund | SLB | Schlumberger Limited | Energy | Oil & Gas Equipment & Services | Bull | NYSE | energy, global scale, international markets, market leader, National Oil Companies, oilfield services, technology leadership | Login |
| Jun 30, 2025 | Fund Letters | Ariel Appreciation Fund | KMX | CarMax, Inc. | Consumer Discretionary | Specialty Retail | Bull | NYSE | Automotive Retail, brand recognition, Consumer Discretionary, inventory management, Omni Channel, used car retail, Value | Login |
| Jun 30, 2025 | Fund Letters | Ariel Appreciation Fund | FI | Fiserv, Inc. | Information Technology | Data Processing & Outsourced Services | Bull | NASDAQ | Digital transformation, financial technology, Fintech, high switching costs, payment processing, recurring revenue, technology | Login |
| Jun 30, 2025 | Fund Letters | Ariel Appreciation Fund | GS | Goldman Sachs Group, Inc. | Financials | Investment Banking & Brokerage | Bull | NYSE | Capital markets, financial services, Franchise Value, investment banking, Trading, Wall Street, wealth management | Login |
| Mar 31, 2025 | Fund Letters | Ariel Appreciation Fund | MAT | Mattel, Inc. | Consumer Discretionary | Leisure Products | Bull | NASDAQ | Consumer Discretionary, Entertainment Franchises, Free Cash Flow, Intellectual Property, Media Content, Share Buybacks, Toy Manufacturer | Login |
| Mar 31, 2025 | Fund Letters | Ariel Appreciation Fund | MIDD | The Middleby Corporation | Industrials | Industrial Machinery | Bull | NASDAQ | Activist Investment, Automation, Commercial Foodservice, Food Equipment, industrial machinery, portfolio optimization, Restaurant Equipment | Login |
| Mar 31, 2025 | Fund Letters | Ariel Appreciation Fund | ADT | ADT, Inc. | Industrials | Security & Alarm Services | Bull | NYSE | customer retention, debt reduction, Home automation, security services, Smart home, Strategic Partnerships, subscription model | Login |
| Mar 31, 2025 | Fund Letters | Ariel Appreciation Fund | BIO | Bio-Rad Laboratories, Inc. | Health Care | Life Sciences Tools & Services | Bull | NYSE | Academic Research, Biotech Tools, Diagnostic Equipment, Healthcare Technology, Laboratory Equipment, life sciences, recurring revenue | Login |
| Mar 31, 2025 | Fund Letters | Ariel Appreciation Fund | KN | Knowles Corporation | Information Technology | Electronic Components | Bull | NYSE | Audio Components, Electronic Components, Hearing Health, medical technology, Micro-Acoustics, Precision Devices, Specialty Films | Login |
| Mar 31, 2025 | Fund Letters | Ariel Appreciation Fund | NCLH | Norwegian Cruise Line Holdings Ltd. | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NYSE | Consumer Discretionary, Cost management, Cruise lines, Leverage reduction, Onboard Spending, Tourism Recovery, Travel & Leisure | Login |
| Mar 31, 2025 | Fund Letters | Ariel Appreciation Fund | OSW | OneSpaWorld Holdings Limited | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | capital returns, Cruise Services, debt reduction, Destination Resorts, Health & Wellness, Spa Services, Travel & Leisure | Login |
| Mar 31, 2025 | Fund Letters | Ariel Appreciation Fund | SLB | Schlumberger N.V. | Energy | Oil, Gas & Consumable Fuels | Bull | NYSE | Digital Tools, energy technology, energy transition, Oil & Gas, oilfield services, Production Enhancement, Reservoir Characterization | Login |
| Dec 31, 2024 | Fund Letters | Ariel Appreciation Fund | GS | Goldman Sachs Group, Inc. | Financials | Investment Banking & Brokerage | Bull | NYSE | asset management, Bull market, Deregulation, financial services, investment banking, M&A, Trading | Login |
| Dec 31, 2024 | Fund Letters | Ariel Appreciation Fund | NTRS | Northern Trust Corporation | Financials | Asset Management & Custody Banks | Bull | NASDAQ | asset management, Conservative, financial services, High Barriers, operational efficiency, Trust Services, wealth management | Login |
| Dec 31, 2024 | Fund Letters | Ariel Appreciation Fund | CG | Carlyle Group Inc. | Financials | Asset Management & Custody Banks | Bull | NASDAQ | alternative assets, asset management, Capital markets, Discount Valuation, fee growth, private equity, Share Buybacks | Login |
| Dec 31, 2024 | Fund Letters | Ariel Appreciation Fund | SWK | Stanley Black & Decker, Inc. | Industrials | Industrial Machinery & Supplies & Components | Bull | NYSE | consumer demand, Cost Reduction, Cyclical Recovery, industrial tools, margin expansion, operational efficiency, transformation | Login |
| Dec 31, 2024 | Fund Letters | Ariel Appreciation Fund | MSGE | Madison Square Garden Entertainment Corp. | Communication Services | Entertainment | Bull | NYSE | cash flow, deleveraging, Entertainment Assets, Iconic Venues, Live entertainment, Private Market Value, Sponsorship | Login |
| Dec 31, 2024 | Fund Letters | Ariel Appreciation Fund | IPG | Interpublic Group of Companies, Inc. | Communication Services | Advertising | Bull | NYSE | advertising, Data Analytics, digital advertising, M&A, Marketing Services, Strategic Combination, Technology Platforms | Login |
| Dec 31, 2024 | Fund Letters | Ariel Appreciation Fund | WBA | Walgreens Boots Alliance, Inc. | Consumer Staples | Drug Retail | Bull | NASDAQ | Drug Retail, Healthcare services, Nationwide Footprint, Pharmacy, private equity, strategic assets, value play | Login |
| Sep 30, 2024 | Fund Letters | Ariel Appreciation Fund | SWK | Stanley Black & Decker | Industrials | Industrial Machinery | Bull | NYSE | consumer demand, Industrial, manufacturing, margin expansion, Outdoor Equipment, Tools, transformation | Login |
| Sep 30, 2024 | Fund Letters | Ariel Appreciation Fund | LAZ | Lazard Inc | Financials | Investment Banking & Brokerage | Bull | NYSE | Active Strategies, asset management, Financial advisory, investment banking, M&A, Revenue Growth, valuation discount | Login |
| Sep 30, 2024 | Fund Letters | Ariel Appreciation Fund | CBRE | CBRE Group Inc | Real Estate | Real Estate Services | Bull | NYSE | Acquisitions, advisory services, commercial real estate, Free Cash Flow, property management, Real Estate Services, Workplace Solutions | Login |
| Sep 30, 2024 | Fund Letters | Ariel Appreciation Fund | NOV | NOV Inc | Energy | Oil & Gas Equipment & Services | Bull | NYSE | backlog conversion, capital return, dividend, international markets, offshore drilling, Oil & Gas Equipment, share repurchase | Login |
| Sep 30, 2024 | Fund Letters | Ariel Appreciation Fund | CLB | Core Laboratories Inc | Energy | Oil & Gas Equipment & Services | Neutral | NYSE | Asia-Pacific, debt reduction, Free Cash Flow, International Growth, Middle East, Oil Services, Reservoir Description | Login |
| Sep 30, 2024 | Fund Letters | Ariel Appreciation Fund | SCHW | Charles Schwab Corporation | Financials | Investment Banking & Brokerage | Bull | NYSE | Brokerage, Cash Balances, Customer Lending, FDIC Insurance, Scale Advantages, TD Ameritrade, wealth management | Login |
| Jun 30, 2024 | Fund Letters | Ariel Appreciation Fund | CLB | Core Laboratories, Inc. | Energy | Oil & Gas Equipment & Services | Bull | NYSE | Asia-Pacific, debt reduction, Diagnostic Solutions, Free Cash Flow, International Growth, laboratory services, Middle East, Oil Services, West Africa | Login |
| Jun 30, 2024 | Fund Letters | Ariel Appreciation Fund | GS | Goldman Sachs Group, Inc. | Financials | Investment Banking & Brokerage | Bull | NYSE | capital management, dividend, Equities Trading, Expense Management, FICC Trading, investment banking, Platform Solutions, regulatory capital, strategic initiatives | Login |
| Jun 30, 2024 | Fund Letters | Ariel Appreciation Fund | WBA | Walgreens Boots Alliance, Inc. | Consumer Staples | Drug Retail | Bull | NASDAQ | CEO transition, cost savings, debt reduction, Drug Retail, Free Cash Flow, Healthcare Integration, margin expansion, retail footprint, turnaround | Login |
| Jun 30, 2024 | Fund Letters | Ariel Appreciation Fund | CRL | Charles River Laboratories International, Inc. | Health Care | Life Sciences Tools & Services | Bull | NYSE | biopharmaceutical, cell therapy, contract research, Drug Discovery, gene therapy, Manufacturing Solutions, margin expansion, Research Models, Scientific Innovation | Login |
| Jun 30, 2024 | Fund Letters | Ariel Appreciation Fund | AMAT | Mattel, Inc. | Consumer Discretionary | Leisure Products | Bull | NASDAQ | Barbie, Consumer brands, Disney Princesses, Film Projects, Free Cash Flow, Hot Wheels, margin expansion, Toy Manufacturing, TV Projects, undervalued | Login |
| Jun 30, 2024 | Fund Letters | Ariel Appreciation Fund | MIDD | Middleby Corporation | Industrials | Industrial Machinery | Bull | NASDAQ | Automation, Efficiency Solutions, Food Equipment, Food service, Former Holding, innovation, New Position, Restaurant Equipment, secular trends | Login |
| Mar 31, 2024 | Fund Letters | Ariel Appreciation Fund | NVT | nVent Electric plc | Industrials | Electrical Components & Equipment | Bull | NYSE | Bull, data centers, electrical equipment, Electrification, Free Cash Flow, infrastructure, margin expansion | Login |
| Mar 31, 2024 | Fund Letters | Ariel Appreciation Fund | LAZ | Lazard Ltd. | Financials | Investment Banking & Brokerage | Bull | NYSE | asset management, Bull, cost savings, financial services, investment banking, M&A Advisory, Revenue Growth | Login |
| Mar 31, 2024 | Fund Letters | Ariel Appreciation Fund | MSGE | Madison Square Garden Entertainment Corp. | Communication Services | Entertainment | Bull | NYSE | Bull, cash flow, deleveraging, Entertainment Venues, Event Bookings, Live entertainment, Premium Assets | Login |
| Mar 31, 2024 | Fund Letters | Ariel Appreciation Fund | WBA | Walgreens Boots Alliance, Inc. | Consumer Staples | Drug Retail | Bull | NASDAQ | Bull, cost savings, Drug Retail, Healthcare services, Management Change, Margin Improvement, turnaround | Login |
| Mar 31, 2024 | Fund Letters | Ariel Appreciation Fund | KN | Knowles Corporation | Information Technology | Electronic Components | Bull | NYSE | Acquisition Synergies, Audio Components, Bull, Cost Controls, Hearing Health, Market Leading, Precision Devices | Login |
| Mar 31, 2024 | Fund Letters | Ariel Appreciation Fund | NVST | Envista Holdings Corp. | Health Care | Health Care Equipment | Bull | NYSE | Bull, Dental Equipment, Facility Consolidation, Healthcare Technology, leadership transition, R&D pipeline, turnaround | Login |
| Mar 31, 2024 | Fund Letters | Ariel Appreciation Fund | BIO | Bio-Rad Laboratories Inc. | Health Care | Life Sciences Tools & Services | Bull | NYSE | Biological Testing, Bull, Dominant Market Share, global diversification, Laboratory Equipment, life sciences, recurring revenue | Login |
| Dec 31, 2023 | Fund Letters | Ariel Appreciation Fund | ACGL | Carlyle Group Inc. | Financials | Asset Management & Custody Banks | Bull | NASDAQ | Advisory Revenues, Alternative Asset Manager, cost savings, earnings beat, margin expansion, private equity, Transaction Revenues | Login |
| Dec 31, 2023 | Fund Letters | Ariel Appreciation Fund | KKR | KKR & Co. | Financials | Asset Management & Custody Banks | Bull | NYSE | Alternative Asset Manager, asset management, Fundraising, Global Atlantic, growth strategy, Insurance, private equity, synergies | Login |
| Dec 31, 2023 | Fund Letters | Ariel Appreciation Fund | SCHW | Charles Schwab Corporation | Financials | Investment Banking & Brokerage | Bull | NYSE | Brokerage, Cost advantage, Customer-Centric, financial services, net interest income, regulatory compliance, scale advantage, TD Ameritrade | Login |
| Dec 31, 2023 | Fund Letters | Ariel Appreciation Fund | CLB | Core Laboratories Inc. | Energy | Oil & Gas Equipment & Services | Bull | NYSE | capital returns, Free Cash Flow, geopolitical risk, Global Operations, Offshore, Oil Services, Onshore, operating margin expansion | Login |
| Dec 31, 2023 | Fund Letters | Ariel Appreciation Fund | AMAT | Mattel Inc. | Consumer Discretionary | Leisure Products | Bull | NASDAQ | Barbie, brand portfolio, Disney, earnings beat, Film Projects, Hot Wheels, market share, Toy Manufacturer, undervalued | Login |
| Dec 31, 2023 | Fund Letters | Ariel Appreciation Fund | BWA | BorgWarner Inc. | Consumer Discretionary | Auto Parts & Equipment | Bull | NYSE | Auto Supplier, Automotive Transition, Combustion Engines, Electric Vehicles, EV Adoption, hybrid vehicles, Low-emission, Oem | Login |
| Sep 30, 2023 | Fund Letters | Ariel Appreciation Fund | AMAT | Mattel, Inc. | Consumer Discretionary | Leisure Products | Bull | NASDAQ | Brand Licensing, cash flow generation, Consumer products, entertainment, growth, Media Franchises, retail, Toy Manufacturing, undervalued | Login |
| Sep 30, 2023 | Fund Letters | Ariel Appreciation Fund | APA|C|FFIV|KHC|NOV|UNH | NOV Inc. | Energy | Oil & Gas Equipment & Services | Bull | NYSE | Cyclical Recovery, Digital Technology, Energy Services, Fracking Technology, Low Emissions, offshore drilling, Oil & Gas Equipment, Rig Automation, Saudi Aramco | Login |
| Sep 30, 2023 | Fund Letters | Ariel Appreciation Fund | KKR | KKR & Co. | Financials | Asset Management & Custody Banks | Bull | NYSE | alpha generation, alternative assets, asset management, Dry powder, Fundraising, infrastructure, Institutional Investors, private equity, transaction fees | Login |
| Sep 30, 2023 | Fund Letters | Ariel Appreciation Fund | IPG | Interpublic Group of Companies, Inc. | Communication Services | Advertising | Bull | NYSE | advertising, Business Wins, Cyclical, healthcare, Macro uncertainty, Marketing communications, media, Variable Cost Structure | Login |
| Sep 30, 2023 | Fund Letters | Ariel Appreciation Fund | GNRC | Generac Holdings, Inc. | Industrials | Electrical Components & Equipment | Bull | NYSE | climate change, Commercial, Free Cash Flow, Grid Instability, Industrial, market penetration, Power generation, Power Outages, Residential, Standby Generators | Login |
| Sep 30, 2023 | Fund Letters | Ariel Appreciation Fund | AXTA | Axalta Coating Systems, Ltd. | Materials | Specialty Chemicals | Bull | NYSE | automotive, Coatings, ERP implementation, margin expansion, market share, Mobility Coatings, Raw Materials, Refinishing, specialty chemicals, Vehicle Production | Login |
| TICKER | COMMENTARY |
|---|---|
| KN | Leading provider of audio components and precision electronic devices, Knowles Corporation (KN) was the top contributor during the quarter 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. |
| GNRC | Leading global manufacturer of power generation equipment, Generac Holdings (GNRC) rose following a margin-driven earnings beat and subsequent raise in its full-year commercial revenue and margin guidance. Performance was fueled by strong demand in the Commercial & Industrial (C&I) segment, particularly from data centers and a growing backlog with visibility through 2027. Profitability benefited from pricing, a firmer residential backdrop and operating leverage as the commercial business scales. The announcement of a global supply agreement with a leading hyperscaler further reinforced the company's expanding role in critical power infrastructure. We believe investors are increasingly recognizing Generac's evolution from a residential generator provider into a diversified, mission-critical power solutions platform. Additionally, expanding exposure to data center infrastructure, combined with a stable residential base, should yield a more resilient revenue mix, higher margins and stronger cash flow generation over time. |
| MSGE | Shares of Madison Square Garden Entertainment (MSGE) advanced following better-than-expected results, fueled by continued strength in concerts and solid growth in sponsorship and advertising. Earnings exceeded expectations, underscoring resilient demand for live entertainment. Sentiment was further supported by news that Amtrak selected a master developer for the Penn Station redevelopment project, which includes taking over MSGE's Infosys Theater. Our thesis remains centered on MSGE's ownership of iconic, irreplaceable venues with strong pricing power and high barriers to entry. A robust event pipeline, including marquee residencies and flagship productions like The Christmas Spectacular, supports sustained growth and cash flow visibility. Combined with a strong balance sheet and disciplined capital allocation, we view MSGE as a distinctive, asset-backed investment with durable demand tailwinds. |
| CLB | By comparison, 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. |
| SLB | Finally, SLB Limited (SLB) traded lower as oil prices declined amid continued progress toward de-escalation of the Middle East conflict. While earnings have decreased so far in 2026, management believes there will be a broad-based recovery in demand in 2027 and 2028 as countries rebuild reserves and diversify sources of energy beyond the Middle East. We believe SLB remains the most resilient and strategically differentiated provider in the oilfield services sector, supported by its global scale, strong balance sheet and disciplined approach to capital returns. |
| 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. |
| HLI | We purchased Houlihan Lokey Inc. (HLI), a global financial advisory firm with a leading position in middle-market M&A and restructuring. While the firm operates in a competitive advisory landscape, its franchise is differentiated by its strong client relationships and diversified business model. We view the recent geopolitical uncertainty and broader market volatility that has pressured its shares as transient. Supported by its established reputation, countercyclical restructuring capabilities and consistent execution, we believe HLI is well positioned to deliver durable growth and sustain its leadership within the advisory space over the long term. |
| 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. |
| PGR | We re-purchased former holding, personal auto insurer, Progressive Corporation (PGR). The company is one of the highest-quality compounders in financial services, consistently gaining market share through superior underwriting, pricing analytics and technology. Its disciplined approach to risk selection has enabled it to deliver industry-leading profitability while continuing to grow policies faster than peers. With a long runway to expand in the large U.S. auto insurance market and higher investment income from its insurance float, we believe PGR has multiple drivers of durable earnings growth. Combined with a strong balance sheet and shareholder-focused capital allocation, we think PGR is well positioned to grow intrinsic value over time. |
| RCL | We also bought Royal Caribbean Group (RCL), the world's second-largest cruise operator, with a portfolio that includes Royal Caribbean International, Celebrity Cruises and Pullmantur. The company benefits from high barriers to entry and durable demand, as well as a meaningful scale advantage, representing nearly a quarter of global cruise capacity. We believe the resilience of the core cruise consumer, coupled with management's demonstrated operational excellence, positions RCL to sustain its strong growth trajectory and further solidify its leadership within the global cruise industry. |
| SWK | Conversely, we exited Stanley Black & Decker (SWK), ADT Inc. (ADT) and Molson Coors Beverage Company (TAP) in order to re-deploy the capital into higher conviction opportunities. |
| ADT | Conversely, we exited Stanley Black & Decker (SWK), ADT Inc. (ADT) and Molson Coors Beverage Company (TAP) in order to re-deploy the capital into higher conviction opportunities. |
| TAP | Conversely, we exited Stanley Black & Decker (SWK), ADT Inc. (ADT) and Molson Coors Beverage Company (TAP) in order to re-deploy the capital into higher conviction opportunities. |
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