Past performance is not indicative of future results. An investment’s return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. All performance assumes the reinvestment of dividends and capital gains. Personal investors may also call 800-292-7435, Option 1, and institutional investors may contact 800-725-0140. Further disclosures and definitions related to the data above can be found at the bottom of this webpage.
We seek value amongst small- and medium-sized companies that are widely misunderstood, ignored and/or underfollowed. We want to own durable franchises with significant barriers-to-entry led by skilled management teams when their shares are mispriced.
Waiting for the Perfect Pitch
First, we find the businesses we want to own and then we patiently wait for the right entry price—one with an ample margin of safety.* Years of diligent research often culminate in a moment of action. Since value can be fleeting, we must be ready to pounce. By exploiting the dislocations that arise from short-term thinking, we drive long-term returns. We aim to arbitrage time.
Mitigating Risk
Maximizing shareholder returns is more than just math. We integrate all material issues, including sustainability-related factors, as part of the broader review of material risks and opportunities for any investment. These considerations are incorporated qualitatively in our bottom-up research, and quantitatively in our financial models—with proprietary Business Resilience Risk ratings assigned to every holding.
Looking Over the Horizon
Getting swept up in the euphoria or misery of the market can lead to emotional decisions and bad outcomes. Our job is to drown out the noise and think long-term. As disciplined, value investors, we look past today’s turbulence to see tomorrow’s possibilities.
*Attempting to purchase a stock with a margin of safety does not protect investors from the loss of their investment, volatility associated with stocks, declining fundamentals, external forces, or our incorrect assumptions.
Our contrarian views result from meticulous, fundamental bottom-up research.
We embrace
Active patience
Long investment horizon
Lower turnover
Margin of safety*
Independent thinking
Contrarian point of view
Benchmark agnostic
Volatility equals opportunity
Focused expertise
Small- and mid-cap value specialists
Deep industry knowledge
Bottom-up stock selection
Go anywhere approaches
Thematic investing
Macro-economic prognostications
Individualism
Job hoppers
Smartest in the room mentality
Winner takes all
Siloed decision-making
*Attempting to purchase a stock with a margin of safety does not protect investors from the loss of their investment, volatility associated with stocks, declining fundamentals, external forces, or our incorrect assumptions.
Our Investment Process
Investment universe clearly defined
Analysts specialize
Proprietary watchlist honed
Portfolio company executives queried
Business model and valuation studied
Investment hypothesis established
Devil’s advocate consulted
Sustainability-related issues identified
Preliminary report generated
Industry assessed/reassessed
Company scrutinized
Valuation models created/updated
Proprietary debt, business resilience risk and moat rating assigned/reviewed
Company management questioned
Comprehensive research report created
Investment thesis debated
Critical issues considered
Downside risk contemplated and quantified
Additional channel checks conducted
These portfolio construction practices may vary and are subject to change.
Portfolio managers make final buy and sell decisions
Top 10 Positions
(as of 03/31/2025)
Top 10 Positions Table for Ariel Appreciation Fund
Company
Ending Weight (%)
1. Mattel, Inc. (MAT)
4.0
2. Northern Trust Corporation (NTRS)
3.7
3. Interpublic Group of Companies, Inc. (IPG)
3.4
4. Generac Holdings, Inc. (GNRC)
3.3
5. First American Financial Corporation (FAF)
3.0
6. The Charles Schwab Corporation (SCHW)
2.9
7. The Middleby Corporation (MIDD)
2.9
8. CarMax, Inc. (KMX)
2.8
9. Labcorp Holdings, Inc. (LH)
2.7
10. J.M. Smucker Company (SJM)
2.7
Ending Weight is the value of the holding relative to the portfolio’s total assets as of the report date. Additional disclosures related to the data above can be found at the bottom of this page.
Industry Weightings
Weightings table for Ariel Appreciation Fund
(as of 03/31/2025)
(as of 03/31/2025)
Ending Weight (%)
Russell Midcap® Value Index (%)
Russell Midcap® Index (%)
S&P 500® Index (%)
Consumer Discretionary
Ending Weight (%)
28.66
Russell Midcap® Value Index (%)
12.92
Russell Midcap® Index (%)
14.26
S&P 500® Index (%)
14.27
Industrials
Ending Weight (%)
21.27
Russell Midcap® Value Index (%)
20.33
Russell Midcap® Index (%)
19.48
S&P 500® Index (%)
12.02
Financials
Ending Weight (%)
21.05
Russell Midcap® Value Index (%)
16.67
Russell Midcap® Index (%)
15.41
S&P 500® Index (%)
11.42
Health Care
Ending Weight (%)
12.32
Russell Midcap® Value Index (%)
7.64
Russell Midcap® Index (%)
8.69
S&P 500® Index (%)
10.67
Energy
Ending Weight (%)
4.98
Russell Midcap® Value Index (%)
6.41
Russell Midcap® Index (%)
6.10
S&P 500® Index (%)
3.71
Consumer Staples
Ending Weight (%)
4.88
Russell Midcap® Value Index (%)
5.84
Russell Midcap® Index (%)
5.34
S&P 500® Index (%)
4.71
Real Estate
Ending Weight (%)
4.74
Russell Midcap® Value Index (%)
10.20
Russell Midcap® Index (%)
7.97
S&P 500® Index (%)
2.27
Basic Materials
Ending Weight (%)
0.00
Russell Midcap® Value Index (%)
3.19
Russell Midcap® Index (%)
2.80
S&P 500® Index (%)
1.41
Technology
Ending Weight (%)
0.00
Russell Midcap® Value Index (%)
7.91
Russell Midcap® Index (%)
12.80
S&P 500® Index (%)
34.37
Telecommunications
Ending Weight (%)
0.00
Russell Midcap® Value Index (%)
1.06
Russell Midcap® Index (%)
0.84
S&P 500® Index (%)
2.33
Utilities
Ending Weight (%)
0.00
Russell Midcap® Value Index (%)
7.83
Russell Midcap® Index (%)
6.31
S&P 500® Index (%)
2.82
Short-Term Investments
Ending Weight (%)
0.37
Russell Midcap® Value Index (%)
0.00
Russell Midcap® Index (%)
0.00
S&P 500® Index (%)
0.00
Disclosures related to the data above can be found at the bottom of this page.
The following disclosures provide definitions relevant to the Key Facts / General Information about this Product, its Performance tables, Top 10 Positions tables, and Industry or Sector Weightings data tables shown above.
Investing in mid-cap stocks is more risky and volatile than investing in large-cap stocks. The intrinsic value of the stocks in which the Fund invests may never be recognized by the broader market. Ariel Appreciation Fund is often concentrated in fewer sectors than its benchmarks, and its performance may suffer if these sectors underperform the overall stock market. Investing in equity stocks is risky and subject to the volatility of the markets.
Performance data quoted represents past performance. Past performance does not guarantee future results. All performance assumes the reinvestment of dividends and capital gains. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.
Indexes are unmanaged. An investor cannot invest directly in an index.
The Russell Midcap® Value Index measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap Index companies with lower price-to-book ratios, lower forecasted growth values and lower sales per share historical growth. Its inception date is February 1, 1995.
The Russell Midcap® Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap Index is a subset of the Russell 1000® Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. Its inception date is November 1, 1991.
Russell® is a trademark of London Stock Exchange Group, which is the source and owner of the Russell Indexes’ trademarks, service marks and copyrights. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes or underlying data and no party may rely on any Russell Indexes and/or underlying data contained in this communication. No further distribution of Russell data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication.
The S&P 500® Index is widely regarded as the best gauge of large-cap U.S. equities. It includes 500 leading companies and covers approximately 80% of available U.S. market capitalization. Its inception date is March 4, 1957.
Average Annual Total Return does not reflect a maximum 4.75% sales load charged prior to 07/15/94.
Ending Weight is the value of the holding relative to the portfolio’s total assets as of the report date.
