Investment Pitches

Pitch Summary:
We initiated a position in specialty insurance company, Beazley plc. The firm's diversified portfolio offerings include commercial property, specialty risk and cyber insurance. We find the growth and profitability profile of its property segment to be attractive as 100% of its business in North America is being generated by the booming Excess and Surplus (E&S) market—an area that caters to non-traditional, high-risk insurance needs. Cyber also presents an exciting structural growth opportunity for the company, particularly since insurance penetration of information assets is low. Looking ahead, we find Beazley's earnings outlook to be attractive, supported by its robust business mix, solid margins and improving capital profile.

BSD Analysis:
Ariel's investment in Beazley focuses on the company's exposure to high-growth specialty insurance markets. The fund is particularly attracted to Beazley's property segment, which generates 100% of its North American business from the rapidly expanding Excess and Surplus market that serves non-traditional, high-risk insurance needs. The cyber insurance opportunity represents a structural growth theme given low current penetration rates for information asset coverage. The investment thesis is supported by Beazley's diversified portfolio across commercial property, specialty risk, and cyber insurance, combined with solid margins and an improving capital profile. This represents a play on specialty insurance market growth with attractive profitability characteristics.

Pitch Summary:
We bought global bank and financial services provider, Barclays PLC. We expect shares to benefit from a recovery in global capital markets and net interest income (NII) growth driven by macroeconomic hedging and asset flows. The bank is also planning to expand its investment banking advisory business. Moreover, its U.S. credit card business presents opportunities for either a potential sale or a quicker earnings recovery. Taken together, we see a reasonable path for Barclays to pursue its return targets, which include the distribution of £3 billion and £10 billion to shareholders through dividends and share repurchases between 2024 and 2026 and achieving a return on tangible common equity of about 12%.

BSD Analysis:
Ariel's bull case for Barclays centers on multiple revenue growth catalysts and attractive shareholder return targets. The fund expects the bank to benefit from a recovery in global capital markets activity and net interest income growth driven by macroeconomic hedging strategies and improved asset flows. The expansion of investment banking advisory services provides additional upside potential. The U.S. credit card business represents optionality through either divestiture or operational improvement. Management's ambitious return targets include distributing £10 billion to shareholders through 2026 and achieving 12% return on tangible common equity. This investment reflects confidence in Barclays' ability to execute on multiple strategic initiatives while delivering substantial capital returns to shareholders.

Pitch Summary:
We added research-based biopharmaceutical company, AbbVie, Inc. (ABBV) following a recent pullback in shares related to a Phase 2 clinical failure for schizophrenia drug, Emraclidine. Despite the setback, we believe AbbVie's core inflammation and immunology (I&I) business is set to outperform. We expect next-generation I&I drugs, Skyrizi and Rinvoq, used in the treatment of inflammatory bowel disease, to be key long-term revenue drivers.

BSD Analysis:
Ariel initiated a position in AbbVie following a share price decline triggered by a Phase 2 clinical trial failure for the schizophrenia drug Emraclidine. The fund views this setback as a buying opportunity, focusing on the strength of AbbVie's core inflammation and immunology franchise. The investment thesis centers on the growth potential of next-generation I&I drugs Skyrizi and Rinvoq, particularly for inflammatory bowel disease treatment. This represents a classic contrarian value play where temporary clinical disappointment creates an attractive entry point for a fundamentally strong pharmaceutical franchise. The manager appears confident that the core I&I business will drive long-term revenue growth despite near-term pipeline setbacks.

Pitch Summary:
Global financial services company, Capital One Financial Corporation (COF) was another top performer during the period. Shares rallied following the U.S. election as investors believe the potential Discover Financial Services (DFS) acquisition is more likely to close. The new administration is expected to be more accommodative of bank mergers and acquisitions. In our view, the deal would produce significant long-term earnings accretion. COF will be able to leverage DFS' proprietary payments network, enabling direct interaction with merchants and consumers. This closed loop dynamic should lead to higher volumes of credit card conversions boosting its shares. At current levels, we view the long-term outlook to be attractive, given favorable business trends, stabilizing delinquency rates within the credit card industry, upside from the DFS acquisition and COF's enhanced focus on technology.

BSD Analysis:
Ariel presents a compelling bull case for Capital One centered on the strategic value of its pending Discover Financial Services acquisition. The fund believes the new administration's more accommodative stance toward bank M&A increases the likelihood of deal closure. The investment thesis hinges on COF's ability to leverage DFS's proprietary payments network to create a closed-loop system that drives higher credit card conversion volumes. The manager views current valuation levels as attractive given multiple positive catalysts including stabilizing credit card delinquency rates, potential earnings accretion from the DFS deal, and the company's enhanced technology focus. This represents a classic value play on a financial services consolidation opportunity with clear operational synergies.

Pitch Summary:
We initiated a position in Sega Sammy Holdings Inc., a Japanese holding company specializing in the development of video games and the production of pachinko and pachislot machines. We believe the company is poised to deliver higher earnings, driven by robust growth within its video game segment. This is largely due to the company's new multiplatform storytelling strategy centered around the firm's core intellectual property: Sonic, Atlus, and Like a Dragon. We believe it will help drive sales of both old and new titles, thereby boosting margins. Meanwhile, the pachinko and pachislot segment remains a profitable and stable cash flow generator for the company.

BSD Analysis:
Ariel initiated a position in Sega Sammy based on a compelling transformation story in the video game segment supported by stable cash flows from gaming machines. The manager highlights the company's new multiplatform storytelling strategy leveraging core intellectual properties including Sonic, Atlus, and Like a Dragon franchises. This strategic shift should drive sales across both legacy and new titles while improving margins through better content monetization. The IP-centric approach provides multiple revenue streams and extends the lifecycle of valuable gaming franchises across platforms and media. The pachinko and pachislot segment provides a stable, profitable cash flow foundation that supports investment in video game growth initiatives. The investment thesis combines growth from video game transformation with defensive cash generation from traditional gaming machines. As the multiplatform strategy gains traction, Sega Sammy should benefit from higher earnings driven by improved content utilization and margin expansion in the video game business.

Pitch Summary:
We added shares of leading pure-play producer of memory semiconductor products, SK Hynix Inc. In our view, SK Hynix is well positioned to benefit from increased deployment of its leading-edge High Bandwidth Memory (HBM) products, which are experiencing rapid demand growth to power Artificial Intelligence (AI).

BSD Analysis:
Ariel initiated a position in SK Hynix to capitalize on the artificial intelligence-driven memory semiconductor boom, particularly in High Bandwidth Memory products. The manager positions SK Hynix as a leading pure-play memory producer, emphasizing its technological leadership in HBM products that are critical for AI applications. The investment thesis centers on the rapid demand growth for HBM products as AI deployment accelerates across industries, creating a structural tailwind for specialized memory solutions. SK Hynix's leading-edge technology and manufacturing capabilities position it to capture disproportionate share of this high-growth, high-margin market segment. The AI theme provides a multi-year growth driver as data centers, cloud providers, and technology companies increase their AI infrastructure investments. As a pure-play memory producer, SK Hynix offers concentrated exposure to this secular trend without the diversification that might dilute returns from other semiconductor segments.

Pitch Summary:
We purchased Redeia Corp SA, a Spain-based electricity provider. We believe Redeia's ability to generate robust earnings growth with further upside from additional regulatory drivers is currently being underappreciated by the market.

BSD Analysis:
While Ariel's commentary on Redeia is brief, the manager clearly views the Spanish electricity provider as an undervalued opportunity with multiple growth catalysts. The investment thesis centers on the company's ability to generate robust earnings growth, suggesting strong operational fundamentals and market positioning. The reference to "additional regulatory drivers" implies potential policy support or regulatory changes that could provide further upside beyond current market expectations. As a Spanish electricity provider, Redeia likely benefits from the country's energy transition initiatives and grid modernization efforts. The manager's assessment that these growth prospects are "underappreciated by the market" suggests an attractive valuation entry point for a utility with above-average growth potential. The position appears to be a value play on Spanish energy infrastructure with regulatory tailwinds.

Pitch Summary:
We also bought leading European telecommunications services operator, Orange SA. The company offers mobile, fixed-line and broadband services to roughly 300 million customers across 26 countries. Orange SA has a strong market presence in France and Spain and is expanding operations across the Middle East and Africa (MEA). We believe positive subscriber trends and rational price increases across these markets will support long term revenue growth. For instance, Orange is gaining market share on its network and service quality in France; benefitting from merger synergies and monetizing the fiber business in Spain; and offering mobile data services to significantly under-penetrated regions in MEA. Meanwhile, as the company completes its fiber-roll-out in France, we expect higher profitability, free cash flow generation and increasing shareholder returns.

BSD Analysis:
Ariel initiated a position in Orange SA based on multiple growth drivers across its geographic footprint and improving profitability from infrastructure investments. The manager highlights positive subscriber trends and rational pricing across Orange's 26-country footprint serving 300 million customers, providing diversified revenue streams. In France, the company is gaining market share through superior network and service quality, while the fiber rollout completion should drive higher profitability and free cash flow generation. Spanish operations benefit from merger synergies and fiber business monetization, creating additional value. The MEA expansion targets significantly under-penetrated mobile data markets, offering substantial growth potential in emerging regions. The investment thesis centers on Orange's ability to drive long-term revenue growth through market share gains, pricing discipline, and geographic expansion while improving margins through infrastructure optimization. As fiber investments mature, the manager expects enhanced cash generation and increased shareholder returns.

Pitch Summary:
We initiated a position in specialty insurance company, Beazley plc. The firm's diversified portfolio offerings include commercial property, specialty risk and cyber insurance. We find the growth and profitability profile of its property segment to be attractive as 100% of its business in North America is being generated by the booming Excess and Surplus (E&S) market—an area that caters to non-traditional, high-risk insurance needs. Cyber also presents an exciting structural growth opportunity for the company, particularly since insurance penetration of information assets is low. Looking ahead, we find Beazley's earnings outlook to be attractive, supported by its robust business mix, solid margins and improving capital profile.

BSD Analysis:
Ariel initiated a position in Beazley based on its exposure to high-growth specialty insurance markets with attractive profitability profiles. The manager highlights the property segment's exclusive focus on the booming Excess and Surplus market in North America, which caters to non-traditional, high-risk insurance needs and commands premium pricing. The cyber insurance opportunity represents a structural growth driver given low insurance penetration of information assets and increasing cyber threats across industries. Beazley's diversified portfolio across commercial property, specialty risk, and cyber insurance provides multiple growth vectors while reducing concentration risk. The investment thesis is supported by the company's robust business mix, solid margins, and improving capital profile, which should drive attractive earnings growth. As specialty insurance markets continue to harden and cyber risks proliferate, Beazley is well-positioned to capture disproportionate growth and profitability in these expanding market segments.

Pitch Summary:
We added global bank and financial services provider, Barclays PLC. We expect shares to benefit from a recovery in global capital markets and net interest income (NII) growth driven by macroeconomic hedging and asset flows. The bank is also planning to expand its investment banking advisory business. Moreover, its U.S. credit card business presents opportunities for either a potential sale or a quicker earnings recovery. Taken together, we see a reasonable path for Barclays to pursue its return targets, which include the distribution of £3 billion and £10 billion to shareholders through dividends and share repurchases between 2024 and 2026 and achieving a return on tangible common equity of about 12%.

BSD Analysis:
Ariel initiated a position in Barclays based on multiple catalysts for earnings recovery and attractive shareholder return targets. The manager expects the bank to benefit from a recovery in global capital markets and net interest income growth driven by macroeconomic hedging and improved asset flows. The planned expansion of investment banking advisory services should capture market share in a recovering fee environment. The U.S. credit card business presents strategic optionality through either a potential sale or accelerated earnings recovery, providing additional value creation opportunities. The investment thesis is anchored by management's ambitious but achievable return targets including £10 billion in shareholder distributions through 2026 and a 12% return on tangible common equity. These targets demonstrate management's confidence in the business transformation and provide clear benchmarks for value creation. At current valuations, Ariel sees an attractive opportunity to participate in Barclays' earnings recovery and capital return program.

Pitch Summary:
Finally, China-based E-commerce company, JD.com, Inc. detracted from performance in the period. The stock came under pressure as some investors took profits on solid earnings performance, while others became concerned with the implications tariffs could have on the Chinese economy. In our view, this share price action runs counter to the company's solid business fundamentals. The home appliance trade-in program and popular shopping event, Singles' Day, generated significant consumer spending across various product categories. Additionally, the company's strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams continues to aid the top- and bottom-lines. Despite the near-term noise, we continue to view the company's strategic positioning favorably and like JD.com's long-term growth prospects.

BSD Analysis:
Ariel maintains conviction in JD.com despite near-term pressure from profit-taking and tariff concerns, viewing the sell-off as disconnected from strong fundamentals. The manager highlights successful consumer engagement through the home appliance trade-in program and Singles' Day shopping event, demonstrating the platform's ability to drive spending across multiple categories. Strategic initiatives including general merchandise diversification, third-party marketplace expansion, and advertising monetization are successfully driving both revenue and profit growth. The investment thesis centers on JD.com's strong competitive positioning in Chinese e-commerce and ability to execute on multiple growth drivers. Despite geopolitical noise around tariffs, the manager believes the company's operational excellence and strategic positioning support attractive long-term growth prospects. The current weakness presents an opportunity to own a leading Chinese e-commerce platform at attractive valuations.

Pitch Summary:
French pharmaceutical company, Sanofi also underperformed. The new administration's decision to appoint a well-known vaccine critic as the future Secretary of the U.S. Department of Health and Human Services (HHS) weighed on pharmaceutical shares industrywide. In our view, the sell-off is an overreaction, as the vaccine business is a small part of Sanofi's total revenue. Moreover, vaccine effectiveness is supported by strong scientific evidence and real-world data, particularly for young, elderly and at-risk patients. At current valuation levels, we view Sanofi's vaccine business and its Respiratory Syncytial Virus (RSV) Antibody as underappreciated and believe the immunology pipeline continues to be overlooked. Also, we remain optimistic Dupixent will be a key long-term growth driver.

BSD Analysis:
Ariel views the Sanofi sell-off as an overreaction to political noise, creating an attractive entry point for a quality pharmaceutical franchise. The manager dismisses vaccine-related concerns as the business represents a small portion of total revenue, and emphasizes strong scientific evidence supporting vaccine effectiveness. The investment thesis focuses on underappreciated assets including the vaccine business and RSV antibody, which should benefit from demographic trends and seasonal demand. The overlooked immunology pipeline provides additional upside optionality beyond current market recognition. Dupixent, Sanofi's blockbuster immunology drug, remains a key long-term growth driver with significant market expansion potential. At current valuations, the manager sees an opportunity to own a diversified pharmaceutical leader with multiple growth catalysts trading at a discount due to temporary political headwinds rather than fundamental deterioration.

Pitch Summary:
In contrast, French multinational tire manufacturer, Michelin (CDGE) was a notable underperformer in the period due to a challenging macro environment. Weaker-than-expected consumer demand caused a sharp decline in volumes resulting in to a top- and bottom-line earnings miss. Subsequently, management cut 2024 guidance and announced plans to close two of its factories by 2026 to reduce costs. Nonetheless, we remain enthusiastic about Michelin's strong global competitive position and pricing strategy. In our view, shares are trading at a large discount to historical multiples despite a stronger balance sheet, higher free cash flow generation and attractive returns of capital to shareholders.

BSD Analysis:
Despite near-term headwinds, Ariel maintains conviction in Michelin as a contrarian value opportunity trading at compelling valuations. The manager acknowledges the challenging macro environment that led to volume declines and earnings misses, but views this as cyclical rather than structural. Management's proactive cost reduction through factory closures demonstrates disciplined capital allocation during downturns. The investment thesis centers on Michelin's strong global competitive position and pricing power, which should drive recovery when demand normalizes. The manager emphasizes improved financial metrics including a stronger balance sheet, higher free cash flow generation, and attractive capital returns to shareholders. At current valuations representing a significant discount to historical multiples, Ariel sees an asymmetric risk-reward opportunity as the tire market recovers and operational improvements materialize.

Pitch Summary:
Additionally, Emaar Properties PJSC, a property investment and development company in the MENA region, traded higher over the period on strong earnings results, highlighted by record quarterly residential sales, healthy margins and robust free cash flow. Additionally, the company announced an attractive long-term dividend policy to return capital to shareholders. Looking ahead, we believe Emaar Properties will continue to benefit from the post COVID recovery in Dubai's real estate market, which has been amplified by a large number of expatriates entering the country.

BSD Analysis:
Ariel views Emaar Properties as a beneficiary of Dubai's robust real estate recovery with strong operational momentum. The company delivered record quarterly residential sales with healthy margins and robust free cash flow generation, demonstrating pricing power and operational efficiency. The announcement of an attractive long-term dividend policy signals management's confidence in sustainable cash generation and commitment to shareholder returns. The manager sees a structural tailwind from Dubai's post-COVID recovery, amplified by significant expatriate inflows that are driving housing demand. This demographic trend should provide sustained support for residential sales and pricing, positioning Emaar to capitalize on the market recovery. The combination of strong fundamentals and favorable market dynamics creates an attractive investment opportunity in the MENA real estate sector.

Pitch Summary:
New holding, Italian bank, Banca Monte dei Paschi also increased following a quarterly earnings beat and subsequent raise in full year guidance. The Italian government also sold a portion of its stake in the firm further aiding share price appreciation. We believe the bank can provide long-term earnings stability through its recent actions to reduce interest rate sensitivity and improve asset quality, thereby enhancing profitability and the balance sheet. Additionally, the bank's increased payout ratio to 75% and attractive cash yield—the highest among European Union banks—bolsters our positive outlook. Furthermore, we think a favorable interest rate outlook alongside the company's solid capital profile and robust trading book as well as the potential for consolidation in the Italian banking sector presents additional upside potential.

BSD Analysis:
Ariel initiated a position in Banca Monte dei Paschi following strong quarterly results and improved guidance, viewing it as a turnaround story with multiple catalysts. The manager emphasizes the bank's strategic efforts to reduce interest rate sensitivity and improve asset quality, which should drive sustainable earnings stability. The 75% payout ratio and highest cash yield among EU banks demonstrates management's commitment to shareholder returns and confidence in capital generation. The partial government stake sale removes an overhang and signals confidence in the bank's recovery. With a favorable interest rate environment, solid capital profile, and robust trading operations, the manager sees multiple drivers for outperformance. The potential for Italian banking sector consolidation adds an additional upside catalyst to the investment thesis.

Pitch Summary:
Germany-based kidney dialysis services and products provider, Fresenius Medical Care AG advanced in the period following solid quarterly earnings results driven by an inflection in the U.S. market as treatment volumes returned to positive growth. Subsequently, management upgraded its 2024 outlook and reaffirmed guidance for 2025. Meanwhile, the company continues to successfully execute on its goal to exit non-core assets in Latin America and invest in Europe and Asia. Additionally, a new ruling from the Centers for Medicare & Medicaid Services (CMS) for 2025 that increases payments to end-stage renal disease facilities further aided shares. At current valuation levels, we believe the Fresenius remains well-positioned from a risk/reward standpoint.

BSD Analysis:
Ariel presents a compelling bull case for Fresenius Medical Care based on operational improvements and regulatory tailwinds. The manager highlights a critical inflection point in the U.S. market with treatment volumes returning to positive growth, suggesting the company has navigated post-pandemic headwinds successfully. Management's upgraded 2024 outlook and reaffirmed 2025 guidance demonstrate confidence in the business trajectory. The strategic portfolio optimization through Latin American asset exits and increased focus on Europe and Asia should improve capital allocation efficiency. The favorable CMS ruling increasing payments to end-stage renal disease facilities provides a meaningful regulatory tailwind for 2025. At current valuations, the manager sees an attractive risk-adjusted opportunity as these fundamental improvements materialize.

Pitch Summary:
Lastly, shares of manufacturer and distributor of floorcovering products, Mohawk Industries Inc. (MHK) declined in the period as consumer demand and pricing remain under pressure due to secular headwinds in the housing market. Although quarterly earnings results were in-line with expectations, management lowered near-term guidance to account for losses resulting from recent U.S. hurricanes. Meanwhile, management continues to successfully execute on productivity and cost restructuring initiatives, while also preparing the business for share gains as demand recovers. In our view, MHK's healthy balance sheet and progress managing through economic cycles should help the company benefit from long-term growth in residential remodeling, new home construction and commercial projects.

BSD Analysis:
Ariel maintains a constructive long-term view on Mohawk Industries despite near-term housing market headwinds pressuring demand and pricing. While recent hurricane-related losses prompted reduced guidance, the manager emphasizes management's successful execution of productivity improvements and cost restructuring initiatives. These operational enhancements position the company to capture market share as housing demand eventually recovers. Ariel highlights Mohawk's healthy balance sheet and proven ability to navigate economic cycles as key competitive advantages. The investment thesis centers on the company's exposure to long-term growth drivers including residential remodeling, new home construction, and commercial development projects. The manager appears confident that current market challenges are cyclical rather than structural, positioning Mohawk for outperformance when housing markets normalize.

Pitch Summary:
Logistics and cash management services provider, Brink's Company (BCO) also underperformed in the period. Despite the delivery of strong organic revenue growth and margin improvement across both the ATM managed services and digital retail solutions segments, currency headwinds and softness in its global services business drove an earnings miss. Although management lowered full year guidance, BCO continues to win margin accretive business, such as its recently announced long-term partnership with Sainsbury's, one of the largest supermarkets in the United Kingdom. Meanwhile, the company is making substantial investments in its technology platforms and returning capital to shareholders through dividends and share repurchases.

BSD Analysis:
Despite recent underperformance, Ariel maintains confidence in Brink's Company's fundamental business trajectory. The manager highlights strong organic revenue growth and margin expansion in key segments including ATM managed services and digital retail solutions. While currency headwinds and global services weakness impacted near-term results, the underlying operational performance remains solid. The recent partnership with Sainsbury's demonstrates Brink's ability to secure high-quality, margin-accretive contracts with major retailers. Management's substantial technology investments position the company for digital transformation and operational efficiency gains. The combination of dividend payments and share repurchases reflects strong cash generation and disciplined capital allocation. Ariel's bullish stance appears based on the company's market-leading position in cash management services and successful transition to higher-margin digital solutions.

Pitch Summary:
In contrast, leading spirits manufacturer, MGP Ingredients, Inc. (MGPI) was the largest performance detractor over the period. The company pre-announced a quarterly earnings miss resulting in a subsequent reduction to full-year 2024 guidance and a downward revision to 2025 estimates. Lower consumer demand for whisky has resulted in weaker-than-anticipated sales and significantly higher inventory levels at distributors. In response, MGPI has reduced its distillery production to only meet its own brand needs. While concerns around inventory levels give us near-term pause, we believe MGPI's future growth is tied to its transition from distilling solutions to selling its own branded spirits.

BSD Analysis:
Ariel acknowledges significant near-term headwinds facing MGP Ingredients following disappointing quarterly results and reduced guidance. The company faces challenging market dynamics with weakening consumer demand for whiskey leading to elevated distributor inventory levels. Management's decision to curtail distillery production to focus only on internal brand needs reflects the severity of current market conditions. Despite these concerns, Ariel maintains a longer-term perspective on the company's strategic transformation from contract distilling to branded spirits. This transition represents a higher-margin business model with greater control over pricing and distribution. However, the manager expresses caution about near-term performance given inventory overhang and demand weakness. The investment thesis depends on successful execution of the brand strategy and eventual market recovery.

Pitch Summary:
Additionally, shares of luxury adventure travel services company, Lindblad Expeditions Holdings, Inc. (LIND) jumped as earnings results exceeded consensus estimates on strength from both the cruise and land-based experience businesses. LIND also announced a leadership succession plan. Founder and long-time CEO, Sven-Olof Lindblad will be stepping into a new position as co-chair of the board of directors and cruise industry veteran, Natalya Leahy is joining the organization as CEO. The company is also bringing on experienced private company CFO, Rick Goldberg. Looking ahead, we expect LIND will increasingly benefit from both its new management structure and strategic relationship with Disney/National Geographic. We believe the expanded fleet and co-branded omnichannel marketing campaign will provide meaningful tailwinds for multiple expansion over the long-term.

BSD Analysis:
Ariel maintains a bullish outlook on Lindblad Expeditions following strong earnings that beat consensus across both cruise and land-based segments. The manager views the leadership transition positively, with founder Sven-Olof Lindblad moving to co-chair while bringing in cruise industry veteran Natalya Leahy as CEO and experienced CFO Rick Goldberg. This management refresh is expected to drive operational improvements and strategic execution. The investment thesis centers on Lindblad's unique positioning in luxury adventure travel and its strategic partnership with Disney/National Geographic. The expanded fleet capacity combined with co-branded marketing initiatives should drive revenue growth and market share gains. Ariel expects these factors to support multiple expansion over the long term as the company scales its differentiated expedition cruise model.