| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.85% | -2.47% | -2.47% |
Ariel Global Fund declined 2.47% in Q1 2026, outperforming the MSCI ACWI Index but trailing the MSCI ACWI Value Index amid volatile, geopolitically-driven markets. The fund's non-consensus value approach targets undervalued, misunderstood franchises across global markets. Key contributors included Intel, which beat revenue expectations with improved supply visibility, and FedEx, following a well-received investor day highlighting margin improvement initiatives and the planned Freight spin-off. Orange SA benefited from strong free cash flow outlook and acquisition synergies. Detractors included First Solar, pressured by policy uncertainty, and Kuaishou Technology, despite intact long-term thesis. The fund initiated ten new positions including Bayer AG, positioned for turnaround as legal risks diminish, and MediaTek, gaining AI chip exposure. Portfolio positioning emphasizes Communication Services, Utilities and Financials while avoiding Energy. Looking ahead, macroeconomic crosscurrents and geopolitical tensions will likely persist, but the evolving landscape creates opportunities for disciplined value investors, particularly outside the U.S. where valuations appear more balanced.
Ariel's non-consensus approach seeks to identify undervalued, out-of-favor franchises that are misunderstood and therefore mispriced, with the fund positioned to benefit from long-term value realization as fundamentals improve across a diversified global portfolio.
The investment environment is likely to remain unsettled, with macroeconomic crosscurrents and geopolitical developments continuing to exert a strong influence on market behavior. Volatility may persist, but historically such periods have also created opportunities for investors willing to look beyond the noise to identify long-term value across a broader set of sectors and regions. The evolving landscape is bringing new opportunities into focus, particularly outside the U.S., where valuations and earnings resilience appear more balanced.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| 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 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 | 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 | 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 | 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 | ES | Eversource Energy | Utilities | Multi-Utilities | Bear | New York Stock Exchange | Capital, Execution, Regulation, Risk, utilities | 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 | 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 | 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 | WBS | Webster Financial Corporation | Financials | Banks | Bull | New York Stock Exchange | banking, buybacks, Credit, Margins, valuation | 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 | ZBH | Zimmer Biomet Holdings, Inc. | Health Care | Health Care Equipment & Supplies | Bull | NYSE | margin expansion, market share, Medical devices, Orthopedics, product launches, turnaround | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 000660.KS | SK Hynix Inc. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | Korea Exchange | AI, DRAM, HBM, Korea, memory semiconductors, NVIDIA, Ssd, technology | 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 | 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 | 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 | 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 | 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 | 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 |
| 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 |
| 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 | 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 | 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 | WAL | Western Alliance Bancorp | Financials | Regional Banks | Bull | NYSE | balance sheet, Banking Crisis, Credit Concerns, Deposit Costs, diversified portfolio, recovery, regional bank, restructuring | 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 | 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 |
| 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 | 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 | 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 | 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 | STLA | Stellantis N.V. | Consumer Discretionary | Automobiles | Bull | NYSE | automotive, Electric Vehicles, Free Cash Flow, Global Manufacturing, Multi-brand Portfolio, operational excellence | 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 |
| 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 | 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 | 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 | 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 | 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 | 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 |
| 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 | 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 |
| 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 | 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 | 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 | 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 |
| 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 |
| TICKER | COMMENTARY |
|---|---|
| INTC | Shares of semiconductor chip manufacturer, Intel Corporation (INTC) rose after revenue beat expectations and management provided clearer visibility on easing 2026 supply constraints during the quarter. Investors reacted positively to guidance that shortages will peak in Q1 before supporting above-seasonal growth for the rest of the year. The stock also benefited from continued traction in Intel's manufacturing and foundry roadmap, including new Panther Lake Stock Keeping Units (SKUs) and active customer engagement on the 14A node, which could convert to commitments in late 2026. While margins will be pressured early in the year, Intel reiterated profitability should improve as supply normalizes and volumes scale. |
| FDX | FedEx Corporation, a global leader in package delivery, also contributed to performance this quarter, following a well-received investor day in February. The update provided greater clarity around the company's longer-term earnings trajectory and reinforced progress on margin improvement initiatives under new leadership. Operational execution continues to improve, with cost efficiencies being realized across the network and strengthening performance within the Express segment through DRIVE and Network 2.0 initiatives. A key development is the planned spin-off of FedEx Freight in June, which has the potential to unlock value while sharpening the company's focus. While macroeconomic uncertainty remains, we believe ongoing execution, portfolio simplification and a potential re-rating can create long-term value. |
| ORA.PA | Leading European telecommunications services operator based in France, Orange SA outperformed following its Capital Markets Day in February, which reinforced confidence in the company's strong free cash flow (FCF) outlook and dividend growth potential. While the stock has benefited from a broader telecom rotation, recent gains reflect increasing investor recognition of incremental FCF from the company's planned acquisition of MasOrange, Spain's leading operator, and value unlocked in Spain. The company has successfully executed on its France earnings turnaround despite a competitive pricing environment, supporting improved market sentiment. Looking ahead, we think Orange SA offers a favorable win-win setup, with either French consolidation improving long-term growth or a no deal scenario allowing for earlier and higher dividend growth. In both cases, the key driver remains robust cash generation and dividends converging toward FCF. We view Orange as undervalued and well-positioned for further upside as fundamentals continue to improve. |
| FSLR | By comparison, shares of First Solar, Inc. (FSLR), a U.S.-based company that makes solar panels and its technology, declined as investors confronted policy uncertainty and slow sales. Shifting dynamics around tariffs, FEOC (Foreign Entity of Concern) requirements and forthcoming safe harbor guidance led delayed customer orders, raising concerns about near-term cancellations and softer first quarter volumes. The latest tariff actions further clouded visibility into future cost structures. While these issues pressured the stock in the short-term, we believe First Solar's strong U.S.-based volume, pricing power and market position suggest a durable long-term growth outlook. |
| PUB.PA | Publicis Groupe SA shares also traded down during the period despite solid underlying fundamentals. The company continues to gain market share and recently delivered an earnings beat, supported by mid-single digit organic revenue growth, margin expansion and outperformance versus peers across geographies. Strong new business momentum has led management to suggest continued organic growth and further margin improvement, with the possibility for additional upside from AI-driven efficiencies over time. While the absence of share buybacks may have disappointed some investors, we like the company's preference for bolt-on acquisitions which we view as a good use of its strong balance sheet to drive differentiated capabilities and faster growth. We think Publicis's unified digital platform and advanced data and technology offerings are well-positioned to meet growing client demand across advertising, data, ecommerce and digital transformation. |
| 1024.HK | Finally, Kuaishou Technology, China's second largest short form video platform, detracted from performance during the quarter, though our broader investment thesis remains intact. The company continues to benefit from a large and highly engaged user base, particularly in lower-tier cities and rural markets, while advancing its strategic shift toward monetization through advertising and e-commerce. Near-term results have been subdued, but we are seeing progress in areas that should support longer-term growth. Investments in AI driven video creation and recommendation tools are improving content discovery and ad targeting, while lowering barriers for small businesses to participate in video advertising. Over time, we believe these initiatives have the potential to enhance advertiser returns, drive higher ad spend and strengthen Kuaishou's competitive positioning. With a growing share of advertising dollars and a clearer path toward margin expansion, we continue to see upside as execution improves. |
| BAYN.DE | We purchased leader in life sciences, healthcare and agriculture, Bayer AG, during the quarter. We believe the market remains anchored to the company's past challenges and is overlooking several catalysts that could materially improve the company's outlook. The stock has been weighed down for years by Roundup litigation, uneven crop protection trends and a disappointing drug pipeline. Looking ahead, Bayer's late-stage medicine Asundexian is showing encouraging results, and we believe a potential U.S. Supreme Court review of a key glyphosate case could pave the way for resolving most outstanding lawsuits, easing financial pressure and removing a major overhang. We think Bayer is entering the early stages of a turnaround and as legal risks diminish and the pharma pipeline strengthens, the stock has meaningful upside. |
| 6383.T | We initiated a position in Daifuku Co. Ltd. which is a leader in logistics automation and cleanroom systems. Its end-to-end capabilities—from consulting and engineering through manufacturing and service—position it at the center of rising demand across automation, e-commerce and semiconductor production. Daifuku's core intralogistics and cleanroom businesses continue to see strong global growth, supported by capacity expansion and the company's solid competitive advantages. Steady margin improvement reflects both disciplined execution and Daifuku's leadership in technology-driven markets. Demand linked to AI, advanced manufacturing and supply chain modernization further strengthens the multi-year outlook. With a strong moat, robust pipeline and exposure to powerful secular trends, we think Daifuku represents an attractive long-term investment opportunity. |
| ENGI.PA | We added ENGIE SA, a globally integrated utility with operations spanning power generation, regulated networks and energy retail. The company's recent acquisition of UK Power Networks (UKPN) increases its weighting toward regulated electricity distribution and we believe this enhances the stability of its earnings profile. Meanwhile, we think the growth in UKPN's regulated asset base is not yet fully reflected in market expectations. ENGIE also maintains a strong position in battery energy storage which, in our view, offers an additional avenue for value creation. Over time, deleveraging is expected to provide greater financial flexibility to support expansion across regulated and storage businesses. In parallel, a firmer European energy backdrop and continued investment in renewables may provide incremental support. |
| EUROB.AT | We bought Greece-based financial services and asset management company, Eurobank SA because we believe it is poised to significantly benefit from Greece's economic recovery. Eurobank should have the opportunity to expand its loan book over the next 5-7 years supported by sustained credit growth and macroeconomic tailwinds. Its focus on wealth management and recent acquisitions in Cyprus and Bulgaria strengthen our conviction. Meanwhile, we expect the country's absorption of European funds and private credit penetration to present further upside for shares. From our perspective, the company's diversified approach, sturdy capital position and competitive return on equity underscores our confidence in its long-term value. |
| FITB | We also initiated a position in diversified financial services company, Fifth Third Bancorp (FITB), during the quarter because we believe the market is undervaluing the strategic and financial potential of its merger with Comerica. The combination creates a top-tier U.S. bank with a significantly expanded presence across many of the country's fastest-growing markets. We see substantial upside to management's cost-synergy expectations given Comerica's higher expense base, as well as earlier-than-expected revenue benefits as Fifth Third improves deposit productivity and leverages its broader footprint. Additionally, we think Fifth Third's retail and digital banking strengths, paired with Comerica's middle market franchise, creates two stable, high-return recurring revenue engines. We believe the new Fifth Third is entering a phase of growth and profitability not yet reflected in consensus expectations. |
| IFX.DE | We repurchased Infineon Technologies, a global leader in power semiconductors. The company has strong exposure to long-term growth themes such as automotive electrification, industrial automation and AI infrastructure. It is a key beneficiary of rising AI power demand. Infineon's long-standing presence in server and data center power creates high customer trust and switching costs, limiting competitive disruption. While the automotive market remains challenging, the weakness is priced in, with early signs of stabilization in Europe and seasonal improvement in China. With AI power demand underpinning earnings in the near-term and autos demand stabilized at a cyclical trough, we view this as an attractive re-entry point to own the shares. |
| MKS.L | We bought British multinational retailer, Marks & Spencer Group plc because we believe the market is overlooking the meaningful progress the company has made in reshaping its brand and strengthening its core businesses. Over the past several years, M&S has rebuilt momentum, improved operational discipline and restored balance sheet health, yet, in our view, its valuation continues to reflect outdated perceptions of a challenged retailer. A recent cyberattack temporarily disrupted performance, but food remained resilient, and the fashion business is already recovering. As operations normalize, we are focused on the company's stronger fundamentals, upgraded credit profile and improving potential for capital returns. In our view, Marks & Spencer is entering the next phase of its turnaround. |
| 2454.TW | We initiated a position in MediaTek Inc., a global semiconductor designer, to gain additional exposure to the fast-growing AI and high-performance connectivity markets. The company is showing strong momentum in custom AI chips, supported by an expanding Application Specific Integrated Circuit (ASIC) pipeline that serves the tailored needs of large cloud customers. MediaTek is strengthening its competitive position through advanced chip design, sophisticated packaging and high bandwidth memory, which are essential for next generation AI infrastructure. We think the launch of its Wi-Fi 8 platform further positions the company to benefit as networks and devices move to higher speed wireless standards. Importantly, MediaTek is emerging as Google's second AI ASIC design partner, providing meaningful exposure to the fastest growing segment of AI spending. While its smartphone business may face headwinds in the near-term, we believe investor focus will increasingly shift to AI, which could support earnings growth and valuation upside from 2027 onward. |
| SZG.DE | Finally, we added producer of a wide range of steel products and tubes, Salzgitter AG as we see compelling upside in a company highly leveraged to a recovery in both the German and broader European economies. Improving steel dynamics and seasonal strength in key businesses suggest a steady rebound in performance. At the same time, Salzgitter's ambitious cost cutting program provides a clearer path to margin expansion. Beyond operational improvements, Salzgitter holds a collection of valuable strategic assets—including its stake in Aurubis, significant carbon credit reserves and proprietary technologies—that we think are not fully reflected in the share price. Adjusting for these assets suggests the core steel operations remain meaningfully undervalued. Regulatory developments, including potential trade defense measures and rising incentives for low carbon steel, further enhance our outlook. |
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