Ariel Investments 40 Followers

Summary

Our portfolios trailed their respective benchmarks during the quarter.

Information technology detracted most across all portfolios.

We initiated a position in Qualcomm, Inc. in our Global portfolio during the third quarter.

As 2026 draws to a close, we expect the next phase of the AI cycle to reward companies that convert investment into lasting returns—not simply those spending at scale.

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Dear Clients and Friends

The third quarter brought the first quarter's fault lines back into view. Oil prices and interest rates reclaimed the spotlight, lifting energy shares and pressuring long-duration assets. Beneath the surface, artificial intelligence (AI) infrastructure fundamentals remained strong, but returns diverged sharply: U.S. mega-cap technology advanced as Asian semiconductor suppliers surrendered part of their second-quarter gains amid renewed debate over cycle durability and capital costs.…