| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.57% | 27.91% | - |
Ariel Global Fund returned +27.91% in Q2 2026, significantly outperforming the MSCI ACWI Index (+14.93%) and MSCI ACWI Value Index (+10.57%). Global equities rebounded strongly, supported by easing geopolitical tensions, resilient earnings and sustained AI investment. While U.S. technology companies remained market leaders, investor focus broadened to semiconductor, memory and infrastructure companies enabling the next phase of AI deployment. Regional performance reflected this dynamic, with Taiwan and South Korea leading returns on robust demand for advanced semiconductors and AI-related hardware. Top contributors included Intel, Murata Manufacturing and MediaTek, benefiting from AI infrastructure buildout and improving fundamentals. Detractors included AT&T, BT Group and Disney, facing competitive pressures and near-term uncertainty. The fund initiated thirteen new positions during the quarter, including Capital One Financial, Dynatrace, Merck KGaA, Orsted, PPL Corporation and several Chinese companies positioned for structural growth. The manager believes the opportunity set is becoming increasingly attractive as market leadership broadens and company-specific fundamentals become more important than macro narratives.
Ariel Global Fund employs a non-consensus approach to identify undervalued, out-of-favor franchises that are misunderstood and therefore mispriced, with a focus on fundamental research, valuation discipline and a long-term perspective.
The fund believes the opportunity set is becoming increasingly attractive as AI remains a powerful secular force reshaping the global economy and market leadership broadens, creating opportunities across a wider range of companies, sectors and geographies. Supported by resilient earnings, improving business fundamentals, strengthening corporate confidence and a more constructive policy backdrop, this evolution points to a more balanced and durable foundation for future returns. The manager expects such environments to provide fertile ground for active investors, as company-specific fundamentals become more important than macro narratives. A disciplined focus on intrinsic value, business quality and long-term competitive advantages is expected to continue uncovering compelling opportunities where market expectations remain disconnected from underlying business prospects.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 28 2026 | 2026 Q2 | 2359.HK, 2382.HK, 2454.TW, 300124.SZ, 3759.HK, 600563.SS, 6981.T, BT-A.L, COF, DIS, DT, FDX, FXFH, INTC, MRK.DE, ORSTED.CO, PPL, T | AI, Biotechnology, China, Energy Transition, global, semiconductors, Telecommunications, value | - | Ariel Global Fund surged +27.91% in Q2 2026, crushing benchmarks as AI investment broadened beyond U.S. tech to semiconductors and infrastructure across Asia. Intel, Murata and MediaTek drove outperformance on AI infrastructure demand. The fund deployed capital aggressively, initiating thirteen positions including utilities, biotech tools and Chinese automation plays. Management sees an increasingly attractive opportunity set as market leadership diversifies and fundamentals matter more than macro narratives. |
| Apr 16 2026 | 2026 Q1 | 1024 HK, 2454.TW, 6383.T, BAYN.DE, ENGI.PA, EUROB.AT, FDX, FITB, FSLR, IFX.DE, INTC, MKS.L, ORA.PA, PUB.PA, SZG.DE | AI, Automation, Energy Transition, financials, Geopolitical, global, semiconductors, value | - | Ariel Global Fund's value-focused approach delivered relative outperformance in volatile Q1 2026 markets. Strong semiconductor and logistics positions offset solar and China headwinds. Ten new positions including Bayer turnaround story and MediaTek AI exposure reflect disciplined opportunistic deployment. Geopolitical tensions and stagflation risks persist, but broadening market leadership and attractive non-U.S. valuations create selective opportunities for patient value investors. |
| 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 |
Ariel Global Fund posted 23.30% annual returns through disciplined international value investing, capitalizing on semiconductor AI demand, European banking consolidation, and energy transition opportunities. The fund initiated sixteen new positions while maintaining focus on undervalued franchises with improving fundamentals. Strong positioning in SK Hynix, European banks, and renewable infrastructure reflects conviction in structural growth themes outside U.S. mega-caps. |
| Oct 15 2025 | 2025 Q3 | 009150.KS, 0425.HK, 3436.T, 6460.T, 6981.T, BT-A.L, FDX, FME.DE, FSLR, HUM, INF.L, INTC, MTB, PUB.PA, ROG.SW, SYENS.BR, VT | AI, Energy Transition, global, healthcare, semiconductors, Telecommunications, value | - | Ariel Global Fund's non-consensus value approach targets mispriced, out-of-favor franchises globally. The fund is strategically shifting away from overconcentrated U.S. markets toward international opportunities with better valuations. Key themes include AI-driven semiconductor recovery, energy transition through solar, and operational turnarounds across telecommunications and logistics. Strong balance sheets and diversified exposure remain priorities for navigating diverging global growth. |
| Jul 17 2025 | 2025 Q2 | 000660.KS, 1590.TW, 2319.HK, 6361.T, 6920.T, BBVA, DIS, FSLR, JD, LTO.MI, SAN, TSCO.L, ZBH | AI, Banking, energy, global, healthcare, semiconductors, value |
6920 JP BBVA SM TSCO.L 000660.KS 6920.T JD 2319.HK SNY 1590.TW BBVA 6361.T FSLR LOTTO.MI DIS ZBH |
Ariel Global Fund's value-focused approach delivered 7.38% in Q2 2025 amid extreme market volatility. Strong performance from AI beneficiary SK Hynix and market leader Tesco offset concerns at JD.com and Sanofi. Seven new positions including First Solar and Disney reflect opportunistic deployment into undervalued franchises. Management maintains defensive positioning in quality companies with solid fundamentals for long-term outperformance despite macro headwinds. |
| Mar 31 2025 | 2025 Q1 | 0002.HK, 2474.TW, 7832.T, AQN, BAC, BBNI.JK, BIDU, CHKP, CVS, DVA, ELE.MC, ISP.MI, LEN, NTAP, OC, TDC, TSM | AI, financials, global, tariffs, value, volatility | - | Ariel Global Fund outperformed in Q1 2025 with a +6.31% return as international markets surged while U.S. markets struggled with tariff fears. The fund's value-focused approach identified mispriced opportunities, adding financial sector positions while exiting weaker performers. Despite expected continued volatility, compelling international valuations and disciplined positioning support long-term outperformance potential. |
| Dec 31 2024 | 2024 Q4 | 000660.KS, 6460.T, ABBV, BARC.L, BEZ.L, BMY, CMA, CNP, COF, CVS, GSK, JD, ORAN | AI, Banking, global, healthcare, Telecommunications, Utilities, value |
COF ABBV BARC.L BEZ.L CNP ORAN.PA REE.MC 000660.KS 6460.T |
Ariel Global Fund's value approach targets mispriced global franchises, returning -3.66% in Q4 2024. Strong performance from Emaar Properties and Capital One offset weakness in Michelin and JD.com. Eight new positions initiated including banking plays Barclays and Capital One. Despite near-term volatility from policy uncertainty, global stocks trade at attractive discounts to U.S. counterparts, positioning the portfolio for long-term outperformance. |
| Sep 30 2024 | 2024 Q3 | 005930.KS, 7270.T, AD.AS, CHKP, CMA, DANSKE.CO, DLG.L, JD, PUB.PA, SNY, STLA, TFC, TSCO.L, USB, WAL | Automotive, Banking, China, cybersecurity, global, Pharmaceuticals, Stimulus, value |
JD CHKP SNY 005930.KS 7270.T STLA CMA PUB.PA TSCDY WAL |
Ariel Global Fund's value-focused strategy delivered 6.94% in Q3, benefiting from Chinese stimulus driving JD.com and strong cybersecurity demand for Check Point. The fund added four new positions while maintaining overweight exposure to Consumer Discretionary and Financials. Managers see value stocks as cheap relative to expensive growth names, positioning for quality company outperformance. |
| Jul 31 2024 | 2024 Q2 | ALL, BG.VI, CS.PA, CVS, DHI, EMAAR.DU, IFX.DE, INTC, LEN, NTAP, STLA, TSM, VT | AI, financials, global, Homebuilders, insurance, semiconductors, technology, value |
NTAP TSM ACKB BB INTC CVS STLA |
Ariel Global Fund fell 3.12% in Q2 as AI-driven tech rally left value stocks behind. Fund added homebuilders and insurers while trimming telecom positions. Strong performance from NetApp and TSMC offset weakness in Intel and CVS Health. Manager sees brightening global outlook for H2 2024 but expects volatility from geopolitical risks and election uncertainty to create opportunities for quality-focused value investors. |
| Apr 15 2024 | 2024 Q1 | 033780.KS, 7270.T, 7832.T, ADM.L, APTV, BIDU, COF, CVS, DOX, DTG.DE, DVA, ELE.MC, INTC, JD, MUV2.DE, NESN.SW, PM, SIE.DE, SRG.MI, STLA, TDC | Automotive, global, healthcare, long-term, technology, undervalued, value | - | Ariel Global Fund returned +7.35% in Q1 2024 using a non-consensus approach to identify undervalued, misunderstood franchises. The fund initiated nine new positions while exiting ten, focusing on higher quality companies with robust balance sheets. Despite market exuberance around AI and mega-cap stocks, the manager sees opportunities in mispriced stocks with attractive valuations and strong fundamentals. |
| Jan 31 2024 | 2023 Q4 | 005930.KS, BIDU, BMY, CNHI, DVA, FMS, INTC, SUBAY, TFC, TSM, VZ, WIZZ.L | AI, financials, global, healthcare, semiconductors, Telecom, value |
INTC BVZN SW BIDU BMY SUBARU CNHI ADDVA SS AIR FP|ICLR|LIN|MRVL|NOW|TSM |
Ariel Global Fund's value approach targets misunderstood, undervalued franchises despite Q4 underperformance versus mega-cap tech dominated markets. Added semiconductor cycle plays Intel, Samsung, TSMC and contrarian dialysis positions DaVita, Fresenius Medical Care. Cautious 2024 outlook expects volatility from geopolitical tensions and monetary uncertainty to create opportunities for quality companies with strong balance sheets trading at attractive valuations. |
| Mar 10 2023 | 2023 Q3 | BAP, BOLSF, GSK, ML.PA, RHHBY, VZ | Banking, Defensive, global, Pharmaceuticals, Telecom, value |
GSK.L ML.PA BVZN SW AD8 AU|ARB AU|BAP AU|CAT AU|DHG AU|PME AU|PNI AU|RDX AU|TNE AU ROG.SW BOLSAA.MX |
Ariel Global Fund's value approach delivered modest outperformance versus its primary benchmark in a challenging quarter. The fund continues identifying undervalued franchises, with pharmaceutical holdings GSK and Michelin contributing positively while Verizon faced temporary headwinds. Management trimmed smaller positions to increase conviction and remains optimistic about long-term opportunities despite near-term macro uncertainty. |
| Jun 30 2023 | 2023 Q2 | BIDU, CREDICORP, DTBSF, ENDSF, GILD, GSK, JNJ, MGDDY, MSFT, PM, RHHBY, VZ | Concentration, global, liquidity, momentum, technology, value | - | Ariel Global Fund's value-oriented approach faced headwinds in Q2 as growth and momentum strategies dominated markets. The Fed's liquidity injection supported speculative assets while narrow technology leadership created concentrated gains. Despite underperformance, the manager maintains conviction in their contrarian positioning in undervalued European and Emerging Market opportunities, expecting fundamentals to eventually reassert themselves. |
| Mar 31 2023 | 2023 Q1 | 9984.T, CAH, CBRE, CCL, CG, ELE.MC, Gold, LESL, MOS, MSFT, MSGE, NCLH, NTRS, ORCL, PARA, RCL, ROG.SW, SNA, SPHR, ZIMV | Fed policy, global, growth, liquidity, momentum, technology, value | - | Ariel Global Fund's value approach faced headwinds in Q2 as growth and momentum stocks dominated, with the top 1% of names driving 76% of market returns. Fed liquidity injections supported speculation despite tightening rhetoric. The fund maintains contrarian positioning in undervalued international markets, expecting fundamentals to regain importance once monetary stimulus effects fade. |
| May 3 2023 | 2022 Q4 | BOKF, CG, ZBRA | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIAI remains a powerful secular force reshaping the global economy, with market leadership broadening beyond U.S. technology companies to semiconductor, memory, and infrastructure companies enabling the next phase of AI deployment. Demand for advanced semiconductors and AI-related hardware remained robust across Taiwan and South Korea, while China participated selectively with gains concentrated in AI-linked companies. The fund sees AI driving sustained investment across the ecosystem, with growing opportunities in data centers, optical interconnects, robotics, and intelligent sensing. |
Semiconductors Data Centers Infrastructure Hardware Cloud |
SemiconductorsThe semiconductor sector benefited from robust demand in data center and AI markets, with Intel showing notable profitability improvement and growing role in next-generation AI infrastructure. MediaTek expanded its position as a key supplier for Google's cloud and AI infrastructure with accelerating TPU adoption. Murata Manufacturing advanced on expectations of a multi-year growth upcycle driven by rising demand for MLCCs in AI data centers, with favorable product mix and pricing dynamics expanding margins. |
AI Infrastructure Data Centers Memory Foundries Components | |
TelecommunicationsThe telecommunications sector faced competitive pressures and investor concerns about industry disruption. AT&T underperformed as investors grew concerned about competitive pressures, modest increases in wireless churn, and softer pricing, though the manager believes satellite-based mobile service fears are overstated. BT Group declined despite in-line earnings as investors digested unchanged guidance and limited near-term upside, though the company is ending a peak investment cycle with fiber capex set to decline and cost efficiencies expected to enhance free cash flow. |
Wireless Fiber Broadband Infrastructure Competition | |
Energy TransitionThe fund initiated a position in Orsted, a leading offshore wind developer, following operational setbacks and political uncertainty that created a valuation opportunity. Management has strengthened the balance sheet and shifted toward a lower-risk operating model, with several large projects now well advanced. Rising electricity demand from U.S. data centers should support renewable power pricing, while Europe's focus on energy security creates a more favorable backdrop for offshore wind development. |
Offshore Wind Renewable Developers Data Centers Power Demand Europe | |
UtilitiesThe fund added PPL Corporation based on an improving regulatory backdrop and clear path to steady earnings growth, with recent rate case outcomes more constructive than expected. The partnership with Blackstone to develop contracted generation assets introduces an additional growth lever with attractive returns, well aligned with rising power demand from data center expansion. The fund is overweight Utilities at the sector level. |
Regulated Utilities Data Centers Power Demand Rate Cases Infrastructure | |
ChinaChina participated selectively in the quarter's market advance, with gains concentrated in AI-linked and internet platform companies, while weaker domestic demand and ongoing property-sector challenges weighed on broader sentiment. The fund initiated positions in several Chinese companies including Pharmaron (benefiting from China's growing role in biopharma innovation), Shenzhen Inovance (positioned for factory automation recovery), Sunny Optical (optical components leader), WuXi AppTec (despite NDAA designation concerns), and Xiamen Faratronic (film capacitors for EVs and renewables). The manager sees attractive valuations and structural growth opportunities despite geopolitical and macro headwinds. |
Biopharma Automation Electric Vehicles Geopolitical Risk Valuations | |
BiotechnologyThe fund purchased Merck KGaA based on conviction that a biopharma spending recovery is underway following prolonged inventory destocking and funding constraints. The inflection is most evident in Process Solutions, with improving order trends reinforcing confidence in near-term performance and longer-term growth outlook. The fund also added Pharmaron to benefit from China's growing role in biopharma innovation, as large pharmaceutical companies increasingly source innovation externally and Chinese biotechs advance programs faster and at lower costs than global peers. |
CRO & CDMO Life Science Tools China Drug Development Outsourcing | |
Electric VehiclesThe fund initiated positions in companies exposed to EV electrification trends, including Xiamen Faratronic (film capacitors with strong positions across EVs and renewable energy) and Shenzhen Inovance (industrial automation with exposure to EV demand). While shares of Inovance have lagged on concerns around EV demand and margin pressure, the manager views these risks as overstated and expects margins to stabilize as pricing, mix, and operating leverage improve. |
Battery Supply Chain Components Automation China Electrification | |
| 2026 Q1 |
ValueAriel's non-consensus approach seeks to identify undervalued, out-of-favor franchises that are misunderstood and therefore mispriced. The fund targets companies trading below intrinsic value with potential for re-rating as fundamentals improve. |
Undervalued Mispriced Intrinsic Re-rating Franchises |
AIMultiple portfolio companies benefit from AI infrastructure demand including Infineon's AI power semiconductors, MediaTek's custom AI chips and ASIC pipeline, and Hongfa's 50% market share in 800V DC power infrastructure for AI data centers. |
Infrastructure Semiconductors Data Centers Power ASIC | |
SemiconductorsIntel showed revenue beats and supply constraint visibility, while Infineon offers exposure to automotive electrification and AI infrastructure. MediaTek strengthens position in AI chips and connectivity markets with expanding ASIC pipeline. |
Supply Automotive Connectivity Foundry Power | |
Energy TransitionFirst Solar faces policy uncertainty but maintains strong US-based positioning. ENGIE's regulated electricity distribution and battery energy storage provide exposure to renewable infrastructure growth. |
Solar Policy Battery Storage Regulated | |
AutomationDaifuku leads logistics automation and cleanroom systems with end-to-end capabilities positioning it for rising demand across e-commerce and semiconductor production driven by AI and supply chain modernization. |
Logistics Cleanroom E-commerce Supply Chain Manufacturing | |
| 2025 Q4 |
SemiconductorsStrong performance from semiconductor holdings including Lasertec Corporation and SK Hynix. Lasertec is positioned for growth in process control intensity and high-volume manufacturing with new APMI tools. SK Hynix benefits from AI infrastructure demand for high-bandwidth memory and NAND solutions. |
Memory AI Infrastructure EUV HBM |
SolarFirst Solar announced new 3.7GW finishing facility in the U.S. expected operational by Q4 2026. The facility aims to cut tariff-related import costs and unlock domestic tax incentives. Increasingly tight U.S. utility-scale solar market could strengthen pricing power. |
First Solar Manufacturing Tariffs Utility Scale | |
BankingInitiated positions in multiple banks including Banca Monte dei Paschi di Siena, Banco Santander, and Bank of Ireland. Focus on operational improvements, efficiency gains, and strategic transformations. European banks positioned to benefit from easing monetary conditions. |
European Banks Efficiency Capital Returns Integration | |
AIAI demand driving growth for SK Hynix in high-bandwidth memory and supporting semiconductor equipment demand. Kuaishou Technology investing in AI-driven video tools to enhance content recommendation and advertising targeting capabilities. |
Memory Infrastructure Video Advertising | |
Data CentersFortum positioned to benefit from power purchase agreements with data center operators. Nordic region well-positioned with low-cost power, cooler climates, and strong fiber infrastructure. Growing U.S. affordability concerns pushing hyperscalers to expand overseas. |
Power Nordic Infrastructure Hyperscalers | |
| 2025 Q3 |
AIThe fund is positioned to benefit from Edge AI adoption through holdings in semiconductor and electronic component companies. Murata Manufacturing is benefiting from rising demand for Edge AI which significantly increases multilayer ceramic capacitor content per device. Samsung Electro-Mechanics is well-positioned to benefit from rising Edge AI adoption and accelerating demand for AI accelerators. |
Edge AI AI Accelerators Semiconductors Components MLCCs |
SemiconductorsThe fund has significant exposure to the semiconductor cycle recovery through multiple holdings. Intel announced a strategic partnership with NVIDIA for custom data center and AI solutions. SUMCO is well-positioned to benefit from Edge AI adoption and a broader semiconductor recovery with capacity expansion initiatives and stronger free cash flow expected. |
Semiconductor Cycle Foundries Silicon Wafers Data Centers Recovery | |
ValueAriel's non-consensus approach seeks to identify undervalued, out-of-favor franchises that are misunderstood and therefore mispriced. The fund focuses on companies trading at attractive valuations relative to their growth prospects while maintaining financial strength needed for operational resilience. |
Undervalued Mispriced Non-consensus Attractive Valuations Financial Strength | |
Energy TransitionFirst Solar was the top contributor following earnings beat and upward guidance revision as the company regains pricing power. The Commerce Department's Section 232 investigation into polysilicon could offer policy support that boosts pricing. First Solar is nearing a strategic move to combine international front-end processing with domestic back-end assembly. |
Solar Renewable Energy Policy Support Pricing Power Manufacturing | |
| 2025 Q2 |
AIStrong AI-driven demand for high bandwidth memory products drove performance at SK Hynix. The company gained market share in high-content server-grade DRAM modules with entire 2025 HBM supply sold out and Nvidia as a key customer. AI power demands are expected to benefit First Solar as the only US-based solar module manufacturer of scale. |
Memory Semiconductors Data Centers Power Infrastructure |
SemiconductorsMultiple semiconductor investments including SK Hynix benefiting from AI memory demand, Lasertec as the only company with commercialized EUV inspection systems, and Ebara positioned for memory wafer fab equipment recovery. The semiconductor cycle appears to be recovering with improving visibility and order expectations for 2026. |
Memory Equipment EUV Foundries Inspection | |
ValueAriel's non-consensus approach seeks to identify undervalued, out-of-favor franchises that are misunderstood and mispriced. International and global holdings trade at compelling valuations relative to growth prospects while maintaining financial strength. Focus on companies with solid balance sheets and durable earnings trading at discounts. |
Undervalued Mispriced Discount Fundamentals Quality | |
Energy TransitionFirst Solar positioned to benefit from growing AI power demands and America First energy policy tailwinds as the only US-based solar module manufacturer of scale. Company is sold out through 2026 with contract wins expected to accelerate as developers seek to secure capacity for subsidies before they expire. |
Solar Manufacturing Policy Capacity Subsidies | |
| 2025 Q1 |
ValueAriel's non-consensus approach seeks to identify undervalued, out-of-favor franchises that are misunderstood and therefore mispriced. The fund's international and global holdings currently trade at compelling valuations relative to their growth prospects, while maintaining the financial strength needed for operational resilience. |
Undervalued Mispriced Valuations Franchises Compelling |
AIThe Magnificent Seven led market declines as America's leadership in Artificial Intelligence came into question. NetApp expects rising demand for AI infrastructure across geographies and verticals. TSMC's earnings are expected to benefit from secular growth trends of AI longer-term despite current sentiment weakness. |
Artificial Intelligence Infrastructure Secular Growth Technology | |
FinancialsThe fund was overweight Financials and initiated positions in Bank of America, Bank Negara Indonesia, and Intesa Sanpaolo. These banks are positioned to benefit from improving regulatory landscapes, net interest margin expansion, and enhanced shareholder returns through buybacks and dividends. |
Banks Net Interest Margin Regulatory Buybacks Capital | |
| 2024 Q4 |
AIMarkets worldwide were led by U.S. mega-cap technology companies and investor enthusiasm for artificial intelligence themed stocks. The narrow ascent of AI themed stocks have driven market returns in recent years, though opportunities should broaden to companies utilizing AI to create real-world efficiencies. SK Hynix is positioned to benefit from increased deployment of its leading-edge High Bandwidth Memory products experiencing rapid demand growth to power Artificial Intelligence. |
Semiconductors Memory Technology Growth Innovation |
BankingMultiple banking positions were initiated including Capital One Financial which rallied following the U.S. election as the potential Discover Financial Services acquisition is more likely to close under the new administration. Barclays was added with expectations to benefit from recovery in global capital markets and net interest income growth. Banca Monte dei Paschi advanced following earnings beat and government stake sale, with the bank providing long-term earnings stability through reduced interest rate sensitivity. |
Financials Credit Consolidation Europe Recovery | |
UtilitiesCenterPoint Energy was purchased after shares came under pressure following political pushback on poor Hurricane Beryl response efforts. The company is viewed as at an inflection point where recent infrastructure upgrades and momentum around potential divestiture of mobile generation assets should improve regulatory standing. Redeia Corp was added as a Spain-based electricity provider with ability to generate robust earnings growth with upside from additional regulatory drivers. |
Infrastructure Regulation Growth Spain Texas | |
TelecommunicationsOrange SA was added as a leading European telecommunications services operator offering mobile, fixed-line and broadband services to roughly 300 million customers across 26 countries. The company has strong market presence in France and Spain and is expanding operations across the Middle East and Africa, with positive subscriber trends and rational price increases expected to support long term revenue growth. |
Europe Africa Infrastructure Growth Expansion | |
| 2024 Q3 |
ValueAriel's non-consensus approach seeks to identify undervalued, out-of-favor franchises that are misunderstood and therefore mispriced. The fund believes growth stocks are trading at elevated valuations, whereas value stocks remain cheap. They strongly believe reasonably priced, higher quality companies offering sustainable, profitable growth and robust balance sheets will be the drivers of future outperformance. |
Value Undervalued Mispriced Quality Growth |
ChinaThe People's Bank of China's comprehensive stimulus measures bolstered investor confidence in the Chinese economy. The improving economic sentiment is fueling consumer spending which benefits retail operations. JD.com was the top contributor as stimulus measures improved confidence in the Chinese economy. |
China Stimulus PBOC Consumer E-commerce | |
CybersecurityCheck Point Software Technologies advanced following solid quarterly earnings results with double-digit billings growth across geographies. The company continues to favor exposure to the fast-growing cloud security market and maintains industry leading profitability. Consumers appear to be adopting more pillars of Check Point's platform and engaging in larger strategic commitments. |
Cybersecurity Cloud Software Security Technology | |
PharmaceuticalsSanofi was a contributor as momentum for Dupixent, a dermatitis treatment, drove earnings. Positive clinical trials for myeloma drug Sarclisa and a Phase 3 Multiple Sclerosis asset also boosted shares. The fund views Sanofi's vaccines business as underappreciated and thinks the immunology pipeline is being overlooked. |
Pharmaceuticals Biotechnology Vaccines Immunology Healthcare | |
| 2024 Q2 |
AIAI investment boom driving significant demand for semiconductor hardware. Apple's announcement on Apple Intelligence kickstarted an Edge AI race which will likely drive greater than expected semiconductor growth in smartphones. TSMC benefits from dominant position in relevant chip manufacturing and packaging for AI applications. |
Semiconductors Edge Computing Smartphones Data Centers Hardware |
SemiconductorsMixed performance across semiconductor holdings with TSMC benefiting from AI demand while Intel faces foundry business challenges. The separation of Intel's design and manufacturing businesses viewed as key catalyst for unlocking improved financial performance. Infineon positioned to gain share from secular tailwinds in auto and renewable markets. |
Foundries Manufacturing Auto Renewables Power Semis | |
HomebuildersAdded positions in D.R. Horton and Lennar Corporation based on view that U.S. housing market will continue experiencing healthy demand due to substantial supply shortages from lack of construction following global financial crisis. Both companies well-positioned to capitalize on affordability issues with entry level, single-family-focused business models. |
Housing Supply Affordability Construction Demand | |
ValueAriel's non-consensus approach seeks to identify undervalued, out-of-favor franchises that are misunderstood and therefore mispriced. Focus on higher quality companies with sustainable, profitable growth and robust balance sheets as drivers of future outperformance. Several positions trading at significant discounts to intrinsic value. |
Undervalued Quality Growth Balance Sheets Mispriced | |
| 2024 Q1 |
AIArtificial intelligence is driving investor enthusiasm and market performance. Companies like Baidu are investing heavily in AI with their Ernie Bot launch, while Capital One is rated as a leading bank in AI implementation. |
Artificial Intelligence Technology Innovation Automation Digital |
AutosAutomotive sector presents opportunities through electrification trends and manufacturing efficiency. Subaru benefits from production recovery, while Stellantis and Daimler Truck show strong operational performance and positioning for electric vehicle transition. |
Automotive Electric Vehicles Manufacturing Transportation Electrification | |
Energy TransitionCompanies are investing in renewable energy and reducing carbon emissions. Endesa is shuttering coal capacity and investing billions in renewables to reduce greenhouse gas emissions and lower power generation costs. |
Renewables ESG Clean Energy Sustainability Decarbonization | |
| 2023 Q4 |
Semiconductor CycleIntel and TSMC positioned to benefit from cyclical recovery in PC and CPU demand. Memory market showing signs of bottoming with Samsung expected to benefit from supply/demand stabilization and rising prices. Foundry business momentum continues with growing customer base. |
Semiconductors Memory Foundries PCs CPUs |
AIIntel showcased AI capabilities across cloud, edge and client hardware at AI Everywhere event. Baidu launched generative AI Ernie Bot to rival ChatGPT. TSMC expected to benefit from secular AI growth trends longer-term despite near-term foundry downturn. |
Artificial Intelligence Generative AI Cloud Edge Computing | |
DialysisAdded DaVita and Fresenius Medical Care following pressure from GLP-1 weight-loss drug clinical data. Manager believes overall impact on dialysis volumes will be small near-to-medium term, with cardio protective effects potentially increasing end-stage renal disease pool. |
Healthcare Renal Disease GLP1 Medical Services | |
ValueAriel's non-consensus approach seeks undervalued, out-of-favor franchises that are misunderstood and mispriced. Finding many mispriced stocks where valuation is attractive, profitability less vulnerable and balance sheets remain strong despite market concentration in mega-cap technology. |
Undervalued Mispriced Balance Sheets Quality | |
| 2023 Q3 |
ValueAriel's non-consensus approach seeks to identify undervalued, out-of-favor franchises that are misunderstood and therefore mispriced. The fund continues to focus on finding mispriced stocks where valuation is attractive, profitability less vulnerable and balance sheets remain strong. |
Undervalued Mispriced Valuation Franchises |
PharmaceuticalsThe fund holds positions in GSK and Roche, with GSK advancing following earnings beats and successful vaccine launches. Roche remains attractive despite mixed earnings, with management viewing the core oncology franchise as one of the most valuable in the world. |
GSK Roche Oncology Vaccines Pipeline | |
| 2023 Q2 |
ValueGrowth stocks significantly outpaced value names this quarter, with the MSCI ACWI Growth Index surging +9.19% while the MSCI ACWI Value Index only returned +2.98%. The manager maintains their value approach despite recent underperformance, believing these factors will pivot in their favor once excessive monetary and fiscal stimulus effects abate. |
Value investing Growth vs value Contrarian Fundamentals Undervaluation |
MomentumHigh-momentum shares emerged as market favorites, driving the MSCI ACWI, ACWI ex-U.S., and EAFE Momentum Indices to advance +4.00%, +4.28%, and +4.52%, respectively. This contradicted the fund's risk-aware stock-picking style and created headwinds for performance. |
Momentum investing Risk strategies Market favorites Performance headwinds | |
LiquidityThe Fed's Bank Term Funding Program injected excess liquidity into the economy, with outstanding loans over $100 billion and Reserve balances surging by approximately $278 billion in the last three months. This inadvertently supported speculative assets like growth companies and cryptocurrencies at the expense of fundamentals. |
Federal Reserve Bank Term Funding Program Excess liquidity Monetary policy Speculative assets | |
AIThe tech-heavy Nasdaq Index experienced an astounding +32% rise, marking its best first-half gain since 1983. The concentration of gains in a few technology companies created an illusion of broad-based outperformance, with the five largest stocks in the S&P 500 contributing +78% of the total gain year to date. |
Technology concentration Nasdaq performance Mega-cap technology Market concentration Artificial intelligence | |
| 2023 Q1 |
ValueThe fund's investment approach encountered headwinds as growth stocks significantly outpaced value names. The MSCI ACWI Growth Index surged +9.19% during the quarter, while the MSCI ACWI Value Index only returned +2.98%. The manager believes the factors that hindered them this year will pivot in their favor once the effects of excessive monetary and fiscal stimulus abate. |
Value investing Growth vs value Contrarian Fundamentals Undervalued |
MomentumHigh-momentum shares emerged as market favorites, driving the MSCI ACWI, ACWI ex-U.S., and EAFE Momentum Indices to advance +4.00%, +4.28%, and +4.52%, respectively. Risk strategies were top performers across primary benchmarks, contradicting the fund's risk-aware stock-picking style. |
Momentum Risk strategies Market favorites Performance disparity | |
LiquidityThe Fed implemented a new Bank Term Funding Program (BTFP) that injected excess liquidity into the economy, just as the Fed had tightened the money supply to combat inflation. Outstanding BTFP loans were over $100 billion in June, and Reserve balances surged by approximately $278 billion in the last three months, inadvertently supporting investments in speculative assets. |
Liquidity BTFP Federal Reserve Money supply Monetary policy |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Jun 30, 2025 | Fund Letters | Ariel Global Fund | TSCO.L | Tesco PLC | Consumer Staples | Food & Staples Retailing | Bull | London Stock Exchange | consumer staples, defensive, Food Retailer, market share, marketplace, retail media, UK | Login |
| Jun 30, 2025 | Fund Letters | Ariel Global Fund | 000660.KS | SK Hynix Inc. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | Korea Exchange | AI, DRAM, HBM, Korea, memory semiconductors, NVIDIA, Ssd, technology | Login |
| Jun 30, 2025 | Fund Letters | Ariel Global Fund | 6920.T | Lasertec Corporation | Information Technology | Semiconductors & Semiconductor Equipment | Bull | Tokyo Stock Exchange | APMI, Euv, Inspection Systems, Japan, Lithography, process control, semiconductor equipment | Login |
| Jun 30, 2025 | Fund Letters | Ariel Global Fund | JD | JD.com, Inc. | Consumer Discretionary | Internet & Direct Marketing Retail | Neutral | NASDAQ | China, e-commerce, food delivery, margin expansion, Position Trim, valuation | Login |
| Jun 30, 2025 | Fund Letters | Ariel Global Fund | 2319.HK | China Mengniu Dairy Company, Ltd. | Consumer Staples | Food Products | Bull | Hong Kong Stock Exchange | China, Cost management, Cyclical Recovery, Dairy Products, market share, supply chain | Login |
| Jun 30, 2025 | Fund Letters | Ariel Global Fund | SNY | Sanofi | Health Care | Pharmaceuticals | Bull | NASDAQ | Clinical trials, Dupixent, france, Immunology, pharmaceuticals, pipeline, tariffs | Login |
| Jun 30, 2025 | Fund Letters | Ariel Global Fund | 1590.TW | AirTAC International Group | Industrials | Industrial Machinery | Bull | Taiwan Stock Exchange | automotive, Chinese Stimulus, electronics, industrial machinery, market share, Pneumatic Equipment, Taiwan | Login |
| Jun 30, 2025 | Fund Letters | Ariel Global Fund | BBVA | Banco Bilbao Vizcaya Argentaria SA | Financials | Banks | Bull | NYSE | banking, Discount Valuation, merger, Mexico, Nearshoring, ROE, Spain, Turkey | Login |
| Jun 30, 2025 | Fund Letters | Ariel Global Fund | 6361.T | Ebara Corporation | Industrials | Industrial Machinery | Bull | Tokyo Stock Exchange | CMP Tools, Hybrid bonding, Industrial Equipment, Japan, margin expansion, Nand, semiconductor equipment | Login |
| Jun 30, 2025 | Fund Letters | Ariel Global Fund | FSLR | First Solar, Inc. | Information Technology | Solar | Bull | NASDAQ | AI Power, America First, Capacity Sold Out, domestic production, Ira, manufacturing, Solar | Login |
| Jun 30, 2025 | Fund Letters | Ariel Global Fund | LOTTO.MI | Lottomatica Group SpA | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | Borsa Italiana | AI platform, Digital transformation, Gaming, Italy, market consolidation, Omnichannel, Online Migration | Login |
| Jun 30, 2025 | Fund Letters | Ariel Global Fund | DIS | Walt Disney Company | Communication Services | Entertainment | Bull | NYSE | ARPU, Content, Disney, entertainment, Free Cash Flow, Streaming, theme parks | Login |
| Jun 30, 2025 | Fund Letters | Ariel Global Fund | ZBH | Zimmer Biomet Holdings, Inc. | Health Care | Health Care Equipment & Supplies | Bull | NYSE | margin expansion, market share, Medical devices, Orthopedics, product launches, turnaround | Login |
| Dec 31, 2024 | Fund Letters | Ariel Global Fund | COF | Capital One Financial Corporation | Financials | Consumer Finance | Bull | NYSE | banking, Bull, credit cards, financial services, M&A, Payments Network, technology | Login |
| Dec 31, 2024 | Fund Letters | Ariel Global Fund | ABBV | AbbVie Inc. | Health Care | Biotechnology | Bull | NYSE | biotechnology, Bull, Clinical trials, contrarian, Immunology, Inflammation, pharmaceuticals | Login |
| Dec 31, 2024 | Fund Letters | Ariel Global Fund | BARC.L | Barclays PLC | Financials | Diversified Banks | Bull | LSE | Bull, Capital markets, credit cards, Global Banking, investment banking, shareholder returns, UK | Login |
| Dec 31, 2024 | Fund Letters | Ariel Global Fund | BEZ.L | Beazley plc | Financials | Property & Casualty Insurance | Bull | LSE | Bull, Commercial Property, cyber insurance, Excess and Surplus, specialty insurance, Structural Growth, UK | Login |
| Dec 31, 2024 | Fund Letters | Ariel Global Fund | CNP | CenterPoint Energy Inc. | Utilities | Electric Utilities | Bull | NYSE | asset sales, Bull, contrarian, Electric Utilities, infrastructure, natural gas, Regulatory, Texas | Login |
| Dec 31, 2024 | Fund Letters | Ariel Global Fund | ORAN.PA | Orange SA | Communication Services | Integrated Telecommunication Services | Bull | Euronext Paris | Africa, Bull, Europe, Fiber Optic, infrastructure, market share, Middle East, telecommunications | Login |
| Dec 31, 2024 | Fund Letters | Ariel Global Fund | REE.MC | Redeia Corp SA | Utilities | Electric Utilities | Bull | Madrid Stock Exchange | Bull, Electric Utilities, regulated utility, Spain, Transmission, undervalued | Login |
| Dec 31, 2024 | Fund Letters | Ariel Global Fund | 000660.KS | SK Hynix Inc. | Information Technology | Semiconductors | Bull | Korea Stock Exchange | Artificial Intelligence, Bull, High-Bandwidth Memory, memory chips, semiconductors, South Korea, technology | Login |
| Dec 31, 2024 | Fund Letters | Ariel Global Fund | 6460.T | Sega Sammy Holdings Inc. | Communication Services | Interactive Media & Services | Bull | Tokyo Stock Exchange | Bull, entertainment, Gaming, Intellectual Property, Japan, Multiplatform, Pachinko, Video games | Login |
| Sep 30, 2024 | Fund Letters | Ariel Global Fund | JD | JD.com, Inc. | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | advertising, China, consumer spending, e-commerce, marketplace, retail, Stimulus, supply chain | Login |
| Sep 30, 2024 | Fund Letters | Ariel Global Fund | CHKP | Check Point Software Technologies Ltd. | Information Technology | Systems Software | Bull | NASDAQ | billings growth, capital allocation, cloud security, cybersecurity, Israel, platform, profitability, Software | Login |
| Sep 30, 2024 | Fund Letters | Ariel Global Fund | SNY | Sanofi | Health Care | Pharmaceuticals | Bull | NASDAQ | Clinical trials, Dermatitis, Dupixent, france, Immunology, pharmaceuticals, pipeline, vaccines | Login |
| Sep 30, 2024 | Fund Letters | Ariel Global Fund | 005930.KS | Samsung Electronics Company, Ltd. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | Korea Stock Exchange | AI infrastructure, Displays, Foundry, HBM, Korea, Memory, semiconductors, Smartphones | Login |
| Sep 30, 2024 | Fund Letters | Ariel Global Fund | 7270.T | Subaru Corporation | Consumer Discretionary | Automobile Manufacturers | Bull | Tokyo Stock Exchange | automotive, Electric Vehicles, foreign exchange, fundamentals, Incentives, Japan, market share | Login |
| Sep 30, 2024 | Fund Letters | Ariel Global Fund | STLA | Stellantis N.V. | Consumer Discretionary | Automobile Manufacturers | Bull | NYSE | automotive, buybacks, dividends, Electric Vehicles, Global, Inventory, operational excellence, profitability | Login |
| Sep 30, 2024 | Fund Letters | Ariel Global Fund | CMA | Comerica, Inc. | Financials | Regional Banks | Bull | NYSE | Commercial Banking, Deposits, Interest rates, Loans, regional bank, risk/reward, valuation, wealth management | Login |
| Sep 30, 2024 | Fund Letters | Ariel Global Fund | PUB.PA | Publicis Groupe SA | Communication Services | Advertising | Bull | Euronext Paris | advertising, Data Analytics, digital platform, Digital transformation, france, Marketing, Revenue Growth, technology | Login |
| Sep 30, 2024 | Fund Letters | Ariel Global Fund | TSCDY | Tesco plc | Consumer Staples | Food Retail | Bull | London Stock Exchange | competitive dynamics, Food Retail, market share, marketplace, operating margins, Pricing, retail media, UK | Login |
| Sep 30, 2024 | Fund Letters | Ariel Global Fund | WAL | Western Alliance Bancorp | Financials | Regional Banks | Bull | NYSE | balance sheet, Banking Crisis, Credit Concerns, Deposit Costs, diversified portfolio, recovery, regional bank, restructuring | Login |
| Jun 30, 2024 | Fund Letters | Ariel Global Fund | NTAP | NetApp Inc. | Information Technology | Technology Hardware, Storage & Peripherals | Bull | NASDAQ | AI, Cloud storage, Data Management, Digital transformation, Enterprise Storage, Hybrid Cloud, SaaS | Login |
| Jun 30, 2024 | Fund Letters | Ariel Global Fund | TSM | Taiwan Semiconductor Manufacturing Company, Ltd. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NYSE | Advanced Manufacturing, AI, Apple, Edge computing, Foundry, semiconductors, Taiwan | Login |
| Jun 30, 2024 | Fund Letters | Ariel Global Fund | ACKB BB | KB Financial Group | Financials | Banks | Bull | NYSE | Asia-Pacific, financial services, Korean Banking, net interest margin, shareholder returns, Value | Login |
| Jun 30, 2024 | Fund Letters | Ariel Global Fund | INTC | Intel Corporation | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | CPU, Foundry, manufacturing, PC Cycle, semiconductors, turnaround, Windows 11 | Login |
| Jun 30, 2024 | Fund Letters | Ariel Global Fund | CVS | CVS Health Corporation | Health Care | Health Care Providers & Services | Bull | NYSE | Aetna, Healthcare services, Insurance, Integrated Healthcare, Medicare Advantage, Pharmacy | Login |
| Jun 30, 2024 | Fund Letters | Ariel Global Fund | STLA | Stellantis N.V. | Consumer Discretionary | Automobiles | Bull | NYSE | automotive, Electric Vehicles, Free Cash Flow, Global Manufacturing, Multi-brand Portfolio, operational excellence | Login |
| Dec 31, 2023 | Fund Letters | Ariel Global Fund | INTC | Intel Corporation | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | AI, Cloud computing, Cyclical Recovery, Enterprise Upgrade, Foundry, Manufacturing Technology, semiconductors | Login |
| Dec 31, 2023 | Fund Letters | Ariel Global Fund | BVZN SW | Verizon Communications Inc. | Communication Services | Wireless Telecommunication Services | Bull | NYSE | defensive, dividend yield, Free Cash Flow, recurring revenue, telecommunications, total return, Value | Login |
| Dec 31, 2023 | Fund Letters | Ariel Global Fund | BIDU | Baidu, Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | AI, autonomous driving, China, cloud services, generative AI, Internet Search, margin expansion | Login |
| Dec 31, 2023 | Fund Letters | Ariel Global Fund | BMY | Bristol-Myers Squibb Company | Health Care | Pharmaceuticals | Bull | NYSE | biopharmaceuticals, Business Development, drug development, FDA approval, First-in-Class, Oncology, pipeline | Login |
| Dec 31, 2023 | Fund Letters | Ariel Global Fund | SUBARU | Subaru Corporation | Consumer Discretionary | Automobile Manufacturers | Bull | Tokyo Stock Exchange | business model, currency impact, EV Roadmap, Japanese Automaker, market share, North America, Raw Materials | Login |
| Dec 31, 2023 | Fund Letters | Ariel Global Fund | CNHI | CNH Industrial NV | Industrials | Agricultural & Farm Machinery | Bull | NYSE | agricultural machinery, cost savings, Cyclical Recovery, Farm Equipment, Margin Improvement, operational efficiency, Precision Agriculture | Login |
| Dec 31, 2023 | Fund Letters | Ariel Global Fund | ADDVA SS | DaVita Inc. | Health Care | Health Care Providers & Services | Bull | NYSE | Cardioprotective, Contrarian Investment, Dialysis Services, End-Stage Renal Disease, GLP-1 Impact, Healthcare services, Market Misunderstanding | Login |
| Dec 31, 2023 | Fund Letters | Ariel Global Fund | AIR FP|ICLR|LIN|MRVL|NOW|TSM | Taiwan Semiconductor Manufacturing Company Ltd. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NYSE | AI, Cyclical Entry, Forward PE, Foundry, market leader, semiconductors, technology leadership | Login |
| Sep 30, 2023 | Fund Letters | Ariel Global Fund | GSK.L | GSK plc | Health Care | Pharmaceuticals | Bull | London Stock Exchange | defensive, healthcare, pharmaceuticals, pipeline, RSV, Specialty medicines, UK, vaccines | Login |
| Sep 30, 2023 | Fund Letters | Ariel Global Fund | ML.PA | Michelin SCA | Consumer Discretionary | Tires & Rubber | Bull | Euronext Paris | Cyclical, france, Global, growth initiatives, manufacturing, mobility, Pricing power, Tires | Login |
| Sep 30, 2023 | Fund Letters | Ariel Global Fund | BVZN SW | Verizon Communications Inc. | Communication Services | Integrated Telecommunication Services | Bull | NYSE | 5G, Capital Spending, Free Cash Flow, infrastructure, telecommunications, US, valuation, Wireless | Login |
| Sep 30, 2023 | Fund Letters | Ariel Global Fund | AD8 AU|ARB AU|BAP AU|CAT AU|DHG AU|PME AU|PNI AU|RDX AU|TNE AU | Credicorp Ltd. | Financials | Banks | Bull | NYSE | banking, Digital transformation, Emerging markets, Financial Penetration, Fintech, market dominance, Peru, ROE | Login |
| Sep 30, 2023 | Fund Letters | Ariel Global Fund | ROG.SW | Roche Holding AG | Health Care | Pharmaceuticals | Bull | SIX Swiss Exchange | biotechnology, defensive, diagnostics, healthcare, Oncology, pharmaceuticals, pipeline, Switzerland | Login |
| Sep 30, 2023 | Fund Letters | Ariel Global Fund | BOLSAA.MX | Bolsa Mexicana de Valores S.A.B. de C.V. | Financials | Financial Exchanges & Data | Bull | Mexican Stock Exchange | Capital markets, Emerging markets, Financial infrastructure, Free Cash Flow, Mexico, Monopoly, net cash, stock exchange | Login |
| TICKER | COMMENTARY |
|---|---|
| INTC | Semiconductor manufacturer Intel Corporation's strong returns were fueled by robust demand in data center and AI markets and a notable improvement in profitability. The results highlight an early recovery in server CPUs while reinforcing Intel's growing role in next-generation AI infrastructure. Confidence is further underpinned by its integrated manufacturing model, which positions the company to benefit from tighter industry capacity and strengthening prices. In our view, Intel is progressing beyond a cyclical recovery toward a structurally stronger, AI-driven growth story. Increasing exposure to AI workloads, stabilization in core businesses and improving execution on advanced process technologies are rebuilding both competitiveness and earnings power. As its product roadmap and foundry strategy gain traction, we see further upside in earnings and valuation. In our view, the recent rally reflects improving fundamentals, but not the full extent of the opportunity. |
| 6981.T | Leading electronic components provider Murata Manufacturing Co., Ltd. advanced as investors increasingly priced in a multi-year growth upcycle propelled by rising demand for multilayer ceramic capacitors (MLCC) in AI data centers. Upward revisions to long-term profit expectations reinforced confidence in sustained earnings expansion, supported by favorable product mix and pricing dynamics. The shift toward higher-value, high-capacitance components, where Murata maintains a clear technological edge, is expanding margins, while tighter industry capacity supports higher prices. In our view, Murata stands to benefit from rapid AI infrastructure buildout, with servers emerging as a key growth driver. At the same time, growing adoption of Edge AI is increasing MLCC content per device, further supporting demand. We view the stock as a compelling long-term investment given its diversification into adjacent areas such as power solutions and radio frequency (RF) modules, improving fundamentals and the recovery in its devices segment. |
| 2454.TW | Shares of semiconductor manufacturer MediaTek Inc. also rose as investors grew more confident in its expanding role as a key supplier for Google's rapidly scaling cloud and AI infrastructure. Stronger expectations for Tensor Processing Unit (TPU) adoption, including faster deployment in upcoming generations, point to a steeper revenue ramp and improving long-term growth visibility. Its cloud ASIC business is also highly profitable, with margin gains and operating leverage set to lift overall earnings power. We believe potential wins with other hyperscalers add further upside and reinforce MediaTek's position in the AI supply chain. Meanwhile, momentum in flagship smartphones and AI-enabled devices broadens the growth story. Overall, accelerating AI demand, improving margins and multiple growth drivers have led to a positive re-rating of the shares. |
| T | Conversely, AT&T Inc. underperformed during the quarter as investors grew more concerned about competitive pressures in the U.S. telecommunications market. Although quarterly results were solid, modest increases in wireless churn and softer pricing weighed on sentiment, while recent capital raising by satellite providers fueled concerns about future industry disruption. We believe those fears are overstated, as viable satellite-based mobile services remain several years away and will require significant technological advances to compete at scale. In the meantime, AT&T continues to execute well, expanding its leading fiber network and strengthening its converged broadband and wireless offering, which we believe will support customer growth and market share gains. Given its attractive valuation, improving earnings outlook, and shareholder returns through dividends and share repurchases, we continue to view the recent weakness as an attractive opportunity. |
| BT-A.L | UK telecommunications provider BT Group plc declined as investors digested in-line earnings and unchanged guidance, offering limited incremental near-term upside. While EBITDA and cash flow modestly exceeded expectations, the absence of a meaningful upgrade to medium-term targets and limited clarity on capital returns weighed on sentiment. Continued weakness in the International segment and ongoing broadband line losses also tempered confidence, partially offsetting stabilizing trends in its wholesale fixed line infrastructure arm, Openreach and improving performance in Consumer. BT is ending a peak investment cycle, with fiber capital expenditures set to decline and cost efficiencies expected to meaningfully enhance free cash flow. At the same time, the competitive landscape is becoming more favorable, as smaller fiber competitors face funding constraints while BT accelerates its network rollout. Together with improving pricing dynamics and structurally rising data demand driven by AI and digital infrastructure, we believe BT is well positioned for a gradual re-rating as execution continues. |
| DIS | The Walt Disney Company (DIS) also traded lower during the quarter despite reporting better-than-expected earnings and raising aspects of its outlook. Investor sentiment was tempered by concerns that much of the earnings beat stemmed from the timing of sports programming costs rather than underlying operational strength, resulting in a weaker near-term outlook for the Sports segment. In addition, while management highlighted healthy demand across its parks and streaming businesses, investors remained cautious amid broader macroeconomic uncertainty and the potential impact of softer consumer spending. As a result, strong operating performance and improved shareholder returns, including an increased share repurchase authorization, were overshadowed by concerns around earnings sustainability and near-term visibility. Despite these headwinds, we continue to view Disney as a unique collection of high-quality media, streaming, parks and consumer franchises with significant potential. |
| COF | We reinitiated a position in Capital One Financial Corp. Its core credit card business is stabilizing, with credit trends improving following the post-pandemic normalization cycle, while earlier reserve builds support a more favorable provisioning outlook. Disciplined balance sheet management and strengthening net interest margin dynamics further support earnings growth. In addition, the Discover acquisition is expected to enhance Capital One's competitive position through ownership of a proprietary payments network, creating opportunities for meaningful synergies and greater strategic flexibility over time. We believe the market is underappreciating the company's earnings potential as credit costs normalize and returns improve. |
| DT | We bought Dynatrace (DT), a leading provider of observability and application performance monitoring software, as we believe the company is well positioned to benefit from the growing complexity of modern IT environments and the increasing adoption of artificial intelligence. Customer feedback and industry checks indicate healthy demand driven by strength in Dynatrace's core monitoring platform, growing traction in log analytics and emerging AI-related use cases. We are particularly attracted to the company's deep technical moat, which has resulted in strong customer retention and limited evidence of competitive displacement despite rapidly evolving AI technologies. As organizations invest more heavily in cloud infrastructure, automation and AI-enabled applications, we believe Dynatrace is positioned to capture more mission-critical software spending. With accelerating growth potential, strong free cash flow generation and an attractive valuation, we view Dynatrace as a compelling opportunity. |
| FXFH | We added FedEx Freight Holding Co., Ltd. following its spinoff from our existing holding, FedEx Corporation (FDX). As a standalone company, FedEx Freight is the leading pure-play less-than-truckload (LTL) carrier in North America, benefiting from unmatched scale, network density and a strong competitive position. We believe the separation from FedEx unlocks upside, as non-union LTL peers have historically commanded materially higher multiples. As a standalone business, FedEx Freight can sharpen its commercial strategy, improve pricing discipline and target a higher-quality freight mix. Margin expansion can also result from yield improvements, volume growth and cost efficiencies. Importantly, the broader LTL backdrop is improving, supported by a recovery in U.S. industrial activity and favorable supply dynamics. Overall, we view the company as a high-quality franchise with structural advantages and multiple levers that can create value. |
| FDX | We added FedEx Freight Holding Co., Ltd. following its spinoff from our existing holding, FedEx Corporation (FDX). |
| MRK.DE | We purchased Merck KGaA, a leading life science tools company, based on our conviction that a biopharma spending recovery is underway following a prolonged period of inventory destocking and funding constraints. The inflection is most evident in Process Solutions, Merck's mission-critical biologics manufacturing business, which benefits from recurring revenue, deep customer integration and high switching costs. Improving order trends are reinforcing confidence in both near-term performance and the company's longer-term growth outlook. While investor sentiment remains pressured by weaker demand in academia and China, we believe accelerating bioprocessing activity will be the primary driver of earnings growth. At current levels, we do not believe the stock price fully reflects the strength of Merck's competitive position or its improving earnings trajectory. |
| ORSTED.CO | We also bought Orsted AS, a leading offshore wind developer, following a sustained period of operational setbacks and political uncertainty. Cost overruns, project delays and policy challenges—particularly in U.S. offshore wind—undermined confidence and culminated in a large rights offering in 2025. In our view, the current valuation still reflects a business facing persistent execution risk, despite clear signs of improvement. Several of Orsted's largest projects are now well advanced, offering visibility into future cash flows. Meanwhile, management has strengthened the balance sheet, tightened capital allocation and shifted toward a lower-risk operating model. Looking ahead, rising electricity demand from U.S. data centers should support renewable power pricing, while Europe's increasing focus on energy security is expected to create a more favorable backdrop for offshore wind development. We do not believe the current valuation fully reflects Orsted's improving fundamentals or earnings potential. |
| PPL | We added PPL Corporation, a utility with an improving regulatory backdrop and a clear path to steady, visible earnings growth. Recent rate case outcomes in key jurisdictions have been more constructive than expected, enhancing return visibility and reducing near-term uncertainty. Favorable developments in Kentucky and Pennsylvania, alongside limited exposure to Rhode Island, support more stable earnings. Beyond its core utility operations, we think PPL's partnership with Blackstone to develop contracted generation assets introduces an additional growth lever with attractive, infrastructure-like returns. This initiative is well aligned with rising power demand, particularly from data center expansion. With improving regulatory clarity, a defined rate base growth outlook and incremental upside from new investments, we believe PPL offers a compelling and balanced total return opportunity. |
| 3759.HK | We purchased Pharmaron Beijing Co., Ltd., a global contract research and manufacturing organization that we expect to benefit from China's growing role in biopharma innovation. As large pharmaceutical companies increasingly source innovation externally, China's drug development ecosystem is gaining share, supported by lower costs, improving scientific capabilities and faster development timelines. Pharmaron's integrated platform across discovery, development and manufacturing allows it to participate across the drug lifecycle, positioning the company to capture this structural shift. Industry data suggests Chinese biotechs can advance programs faster and at lower costs than global peers, which is generating more out-licensing activity as well as demand for outsourced services. While prior concerns around regulatory scrutiny, geopolitical tensions and data integrity have weighed on sentiment, we believe these risks are now better understood and reflected in the current valuation. With improving growth visibility, continued new order momentum and meaningful operating leverage to a strengthening innovation cycle, we believe Pharmaron represents an attractive long-term investment opportunity. |
| 300124.SZ | We initiated a position in Shenzhen Inovance Technology Co., Ltd., China's leading industrial automation company, as evidence of a cyclical recovery in factory automation continues to build. After several years of inventory correction and weak capital spending, order trends are improving. Both Inovance and global peers are pointing to a stronger than expected rebound boosted by investments in electronics, semiconductors, logistics and the energy transition. Shares have lagged on concerns around electric vehicle (EV) demand, moderating share gains and margin pressure, but we view these risks as overstated. Inovance continues to gain share across core automation categories, benefiting from supply chain localization and an expanding product portfolio. Meanwhile, margins are expected to stabilize as pricing, mix and operating leverage improve. Beyond its core business, we see incremental upside from newer growth areas such as robotics, energy storage and data center power infrastructure. With demand recovering and earnings momentum building, we believe Inovance is well positioned for sustained long-term growth. |
| 2382.HK | We also added Sunny Optical Technology Group Co., Ltd., a global leader in optical components and imaging solutions. We believe the company is well positioned to benefit from growth across consumer electronics, AI and intelligent sensing. Its leading optical engineering capabilities and strong innovation track record have enabled it to gain share in premium smartphone cameras while expanding into attractive markets such as optical interconnects, robotics and extended reality. We are particularly encouraged by management's focus on the convergence of optics and AI, which we believe will expand the company's growth opportunities and strengthen its competitive position. Supported by a scaled manufacturing platform, deep customer relationships and growing opportunities beyond smartphones, we believe Sunny offers a compelling combination of technological leadership and durable growth. |
| 2359.HK | We purchased WuXi AppTec Co., Ltd., a leading global contract developer for manufacturing organization (CDMO), based on its integrated platform across the pharmaceutical value chain and deep relationships with multinational clients. Recent inclusion on the list mandated by Section 1260H of the U.S. National Defense Authorization Act (NDAA) has created a sentiment-driven dislocation, but we believe the direct operational impact is limited, as core client activities and existing contracts remain largely unaffected. Exposure to U.S. federal funding is minimal for most customers, further mitigating risk. We also see potential for the designation to be challenged or reversed, as seen in prior cases, which could act as a catalyst for sentiment recovery. In our view, the market is overreacting to geopolitical risks relative to the company's strong fundamentals and long-term growth profile. This creates an attractive entry point into a high-quality franchise with durable demand and a leading position in a structurally growing industry. |
| 600563.SS | We bought Xiamen Faratronic Co., Ltd., a global leader in film capacitors with strong positions across EVs and renewable energy applications. The company stands to benefit from electrification trends, with rising demand from new energy vehicles and data centers supporting future growth. We think Faratronic's scale, technology leadership and deep customer relationships provide a real advantage in these structurally expanding markets. We also expect an improving cost structure to support margin recovery in its EV business, helping lift overall profitability. Faratronic is a high-quality way to gain exposure to the global energy transition with accelerating earnings potential. |
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