Ariel Investments 40 Followers

Summary

For the quarter ending June 30, 2026, the Ariel Focused Value Composite's +2.06% gross of fees (+1.96% net of fees) return trailed its primary benchmark.

The significant difference in tech exposure between our portfolio and its benchmarks explains our performance shortfall.

A very large portion of the Russell 1000 Value Index has de facto become an AI-infrastructure investment.

We buy what others are selling, and we see the greatest opportunity in the areas currently being shunned.

We continue to believe that higher inflation favors the hard assets and cash-generative businesses we own.

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Dear Clients and Friends

For the quarter ending June 30, 2026, the Ariel Focused Value Composite's +2.06% gross of fees (+1.96% net of fees) return trailed its primary benchmark, the Russell 1000 Value Index, which gained +13.87%, and similarly lagged the broader market as measured by the S&P 500 which rose +15.20%.…