| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 8.4% | 2.9% | 23.3% |
| 2025 |
|---|
| 23.3% |
Ariel Global Fund delivered solid absolute returns in Q4 2025, gaining 2.88% versus 3.29% for the MSCI ACWI Index, while posting strong full-year performance of 23.30%. The fund's non-consensus approach focuses on identifying undervalued international franchises that are misunderstood and mispriced. Key return drivers included strong stock selection in Financials and Information Technology, with semiconductor companies like SK Hynix and Lasertec benefiting from AI infrastructure demand. The fund initiated sixteen new positions, including European banks BMPS, Santander, and Bank of Ireland, capitalizing on consolidation opportunities and operational improvements. Energy transition investments like First Solar and Fortum provide exposure to solar manufacturing and data center power demand. Primary risks include geopolitical developments, uneven economic trends, and sector-specific challenges like pharmaceutical patent expirations. The portfolio is positioned for international growth opportunities, overweight Communication Services, Utilities and Health Care while maintaining disciplined exposure to companies with robust balance sheets and diversified revenue streams.
Ariel Global Fund seeks to identify undervalued, out-of-favor franchises that are misunderstood and therefore mispriced through a non-consensus approach, focusing on international opportunities where improving returns are not yet fully priced in.
As we move into 2026 and beyond, the investment landscape outside the U.S. is becoming increasingly compelling. Policy alignment, currency dynamics and improving corporate fundamentals are creating fertile ground for growth. With market dispersion rising and leadership broadening beyond U.S. mega-caps, active investors have a bigger runway to uncover businesses where improving returns are not yet fully priced in. Growth dynamics are shifting with a firmer economic backdrop fueling revenue expansion, unlocking operating leverage and accelerating balance-sheet repair. The greater risk today lies in remaining structurally underweight international equities rather than increasing exposure.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 18 2026 | 2025 Q4 | 000660.KS, 1024.HK, 4751.T, 6367.T, 6460.T, 6762.T, 6856.T, 7832.T, BIRG.L, BMPS.MI, BMY, FME.DE, FORTUM.HE, FSLR, HPE, LREN3.SA, SAN, T, WBS, WCH.DE | AI, Banking, Data centers, Energy Transition, global, international, semiconductors, value |
FSLR 6920 JP 000660 KS T BMY 4751 JP 6367 JP 1024 HK WCH GR WBS ES |
The fund sees strong opportunities in semiconductor equipment and memory companies. Lasertec is positioned for growth as it transitions toward high-volume manufacturing with its new… |
| Oct 15 2025 | 2025 Q3 | 009150 KS, 3436 JP, 425 HK, 6460 JP, 6981 JP, BTA LN, FDX, FME GR, FSLR, HUM, INFA, INTC, MTB, PUB FP, ROG SW, SYNSY | Artificial Intelligence, diversification, Edge computing, Global Equities, Value Investing | - | Ariel Global Fund benefited from strong stock selection in solar, semiconductors, and healthcare, and expanded into companies exposed to AI and Edge computing. The team… |
| Jul 17 2025 | 2025 Q2 | 000660 KS, 1590 TT, 2319 HK, 6361 JP, 6920 JP, BBVA SM, DIS, FSLR, JD, LTMC IM, SNY, TSCO LN, ZBH | diversification, Global Equities, Governance, Quality, Rotation |
6920 JP BBVA SM |
The letter highlights global diversification benefits as leadership rotates across regions and sectors. Management focuses on high-quality global franchises with durable competitive advantages and strong… |
| Mar 31 2025 | 2025 Q1 | 7832 JP, AQN, BAC, BBNI IJ, CHKP, CVS, ISP IM, NTAP, OC, TDC, TSM | - | - | - |
| Dec 31 2024 | 2024 Q4 | 00660 KS, 6460 JP, ABBV, BCS, BEZ LN, BMPS, CDGE, CNP, COF, CVS, EMAAR, JD, ORA FP, RED SM | - | - | - |
| Sep 30 2024 | 2024 Q3 | 005930 KS, 7270 JP, CHKP, CMA, JD, PUB FP, SNY, STLA, TSCO LN, WAL | - | - | - |
| Jul 31 2024 | 2024 Q2 | ALL, BAWAY, CS FP, CVS, EMAAR UH, IFX GR, INTC, KB, NTAP, STLA, TSM | - | - | - |
| Apr 15 2024 | 2024 Q1 | 7270 JP, 7832 JP, APTV, BIDU, COF, CVS, DTG, DVA, ELE SW, INTC, JD, STLA, TDC | - | - | - |
| Jan 31 2024 | 2023 Q4 | BIDU, BMY, CNH, DSN0 GR, FUH0 GR, INTC, KB, O2D GR, TFC, VZ, WIZZ LN | - | - | - |
| Mar 10 2023 | 2023 Q3 | BAP, BC51 GR, DLG LN, GSK, ML FP, RHHBY, VZ | - | - | - |
| Jun 30 2023 | 2023 Q2 | - | - | - | - |
| Mar 31 2023 | 2023 Q1 | BIDU, LESL, MSGE, SRCL | - | - | - |
| May 3 2023 | 2022 Q4 | BOKF, CG, ZBRA | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
BankingFocus on Metro Bank's transformation into commercial and specialty mortgage bank, with MREL exit providing significant cost savings. PTSB sales process ongoing with potential strategic and private equity bidders. Both banks offer attractive risk-reward profiles despite challenging UK and Irish economic environments. |
Commercial Banking Mortgage Transformation Capital Returns Europe | |
Data CentersComfort Systems USA benefited from robust demand for data centers and AI-related infrastructure, with the company reporting stronger-than-expected revenue driven by this demand. |
Infrastructure Technology Construction AI Revenue | |
Energy TransitionEnergy transition themes are reflected through infrastructure investments and companies positioned for the global push toward renewable energy, including exposure to energy services and LNG infrastructure where long-term dynamics look positive. |
Renewables Infrastructure Clean Energy Sustainability Climate | |
SemiconductorsTaiwan Semiconductor represents the dominant manufacturer for leading fabless chip designers including NVIDIA, Apple, and Broadcom. The global arms race to develop artificial general intelligence will support multiple years of robust growth for foundries with leading-edge capabilities. |
Foundries Advanced Process AI Chips Manufacturing Technology Leadership | |
| 2025 Q3 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
Global Markets |
||
ValueThe portfolio trades at significant discounts to the broad market, with P/E ratios 40-42% below the S&P 500. The manager believes many steady-growing companies are overlooked by markets focused on AI winners, creating opportunities in businesses with lower assumed margins and productivity that could benefit from AI adoption. |
Discount Multiples Undervalued Overlooked Opportunity | |
| 2025 Q2 |
GlobalInternational and emerging market equities dominated performance with annual returns above 30%, reinforcing the case for global diversification. Non-US developed markets gained 31.9% while emerging markets gained 33.6% for 2025. |
Diversification International Emerging Markets Outperformance Currency |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 18, 2026 | Fund Letters | Rupal J. Bhansali | WCH GR | Wacker Chemie AG | Materials | Chemicals | Bull | Xetra | Chemicals, energy, Margins, Polysilicon, Pricing | Login |
| Jan 18, 2026 | Fund Letters | Rupal J. Bhansali | WBS | Webster Financial Corporation | Financials | Banks | Bull | New York Stock Exchange | banking, buybacks, Credit, Margins, valuation | Login |
| Jan 18, 2026 | Fund Letters | Rupal J. Bhansali | ES | Eversource Energy | Utilities | Multi-Utilities | Bear | New York Stock Exchange | Capital, Execution, Regulation, Risk, utilities | Login |
| Jul 17, 2025 | Fund Letters | Rupal J. Bhansali | 6920 JP | Lasertec Corporation | Information Technology | Semiconductor Equipment | Bull | NYSE | AI, CapEx, Equipment, Euv, Foundries, Inspection, Lithography, semiconductors | Login |
| Jul 17, 2025 | Fund Letters | Rupal J. Bhansali | BBVA SM | Banco Bilbao Vizcaya Argentaria SA | Financials | Diversified Banks | Bull | Brasil Bolsa Balcão | banking, Capital, consolidation, Digitalisation, Emerging, Margins, Mexico, Re-rating | Login |
| Jan 18, 2026 | Fund Letters | Rupal J. Bhansali | FSLR | First Solar, Inc. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | Incentives, manufacturing, Margins, Solar, tariffs | Login |
| Jan 18, 2026 | Fund Letters | Rupal J. Bhansali | 6920 JP | Lasertec Corporation | Information Technology | Semiconductor Equipment | Bull | New York Stock Exchange | CapEx, Euv, Inspection, semiconductors, technology | Login |
| Jan 18, 2026 | Fund Letters | Rupal J. Bhansali | 000660 KS | SK Hynix Inc. | Information Technology | Semiconductors | Bull | New York Stock Exchange | AI, HBM, Margins, Memory, semiconductors | Login |
| Jan 18, 2026 | Fund Letters | Rupal J. Bhansali | T | AT&T Inc. | Communication Services | Telecom Services | Bull | New York Stock Exchange | cashflow, Convergence, dividends, Fiber, Telecom | Login |
| Jan 18, 2026 | Fund Letters | Rupal J. Bhansali | BMY | Bristol-Myers Squibb Company | Health Care | Pharmaceuticals | Bull | New York Stock Exchange | dividends, Oncology, pharma, pipeline, valuation | Login |
| Jan 18, 2026 | Fund Letters | Rupal J. Bhansali | 4751 JP | CyberAgent Inc. | Communication Services | Interactive Media & Services | Bull | New York Stock Exchange | advertising, Ip, monetization, recovery, Streaming | Login |
| Jan 18, 2026 | Fund Letters | Rupal J. Bhansali | 6367 JP | Daikin Industries Ltd. | Industrials | Building Products | Bull | New York Stock Exchange | aftermarket, efficiency, Global, HVAC, Margins | Login |
| Jan 18, 2026 | Fund Letters | Rupal J. Bhansali | 1024 HK | Kuaishou Technology | Communication Services | Interactive Media & Services | Bull | New York Stock Exchange | advertising, AI, Margins, monetization, social media | Login |
| TICKER | COMMENTARY |
|---|---|
| 000660.KS | SK Hynix continued its strong performance as the clear winner to date in high bandwidth memory, reporting a 62% year-over-year growth in profits in the third quarter and announcing that all of its DRAM, NAND and high bandwidth memory capacity is fully booked for 2026. SK Hynix was a top contributor over the quarter and year, with reductions made as it was among artificial intelligence-related companies that had performed well. |
| 1024.HK | our Chinese e-commerce and internet stalwarts – Kuaishou saw their share prices soften as the market focused on more direct AI beneficiaries |
| 6367.T | We added to our positions in Daikin, a global leader in air conditioning systems, on valuation. |
| 7832.T | Japanese video game publisher, Bandai Namco Holdings, Inc. underperformed this quarter as higher advertising spend for four new network titles and weaker-than-expected sales pressured results. Additionally, several home console launches carried significant upfront costs, further weighing on margins. While these investments hurt near-term profitability, we think they reflect a strategy to build future growth through an expanded content pipeline. |
| BIRG.L | Bank of Ireland and Horiba rounded out the Fund's list of largest performance contributions for the quarter. As has been the case for much of 2025, the Fund's Western European holdings, such as Bank of Ireland, Buzzi Spa and BMW, each contributed to fourth quarter performance in a positive and significant way. In recent years, our two European bank holdings, Bank of Ireland and Deutsche Bank, have benefited from dramatically improved operating performance, which has led to a growing appreciation of their abilities to generate attractive returns on capital. The Fund materially reduced the weight of its holdings in Deutsche Bank and Bank of Ireland during the year. |
| BMPS.MI | We initiated a position in Banca Monte dei Paschi di Siena SpA (BMPS), a leading Italian banking group. Recent developments have strengthened its investment case, with management outlining a clear strategy that includes a progressive dividend policy, a well-defined integration plan following its acquisition of Mediobanca and a strong capital position. The acquisition of Mediobanca has transformed BMPS into Italy's third-largest banking group, expanding its reach beyond retail and SME banking into corporate and investment banking, wealth management and consumer credit. |
| BMY | We re-initiated a position in Bristol-Myers Squibb Company (BMY), a global leader in oncology and cardiovascular treatments, anchored by flagship therapies such as Opdivo and Eliquis. The company has broadened its portfolio with recently approved drugs in hematology and immunology, as well as an acquisition in psychiatric disorders. While upcoming patent expirations pose a challenge, we believe new therapies and pipeline opportunities could offer meaningful upside. |
| FME.DE | Fresenius Medical Care AG, the Germany-based global leader in kidney dialysis services and products, traded lower on mixed quarterly results. While the company delivered organic growth across all segments, earnings were impacted by continued restructuring and portfolio optimization costs. With profitability trending higher and strong cash generation supporting balance sheet deleveraging, we view Fresenius as attractively positioned from a risk/reward perspective. |
| FSLR | First Solar (FSLR) traded higher this quarter following the announcement of a new 3.7GW finishing facility in the U.S., which is expected to be operational by Q4 2026. This project is designed to be highly profitable, with an anticipated payback period of less than a year. By shifting the final processing of semi-finished solar cells from Southeast Asia back to the U.S., First Solar aims to cut tariff-related import costs and unlock valuable domestic tax incentives. |
| HPE | We initiated a position in Hewlett Packard Enterprise Company (HPE), a global provider of enterprise hardware solutions including servers, networking and storage. The company recently completed its acquisition of Juniper Networks, strengthening its position in networking, a higher-margin business that improves HPE's overall financial profile. Despite this strategic move, the stock has lagged due to cautious guidance and a history of inconsistent execution. |
| SAN | We purchased Spain-based bank, Banco Santander, SA. We believe the company is well-positioned for meaningful efficiency gains and stronger profitability as it streamlines operations and reduces costs. Upcoming strategic updates are likely to set more ambitious return targets, which could shift market expectations. Easing monetary conditions in key markets like Brazil may further support margins and reduce credit risk. |
| T | Telecoms lagged on concerns that a new CEO at VZ (not held) will increase the competitive intensity within the industry. |
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