December 11, 2020
Mellody Hobson and John W. Rogers, Jr. say what worked over the past decade is unlikely to work over the next.
By clicking the above link, you'll leave this site and go to a third-party website. Ariel does not control the content or privacy practices of the other website and does not endorse or accept responsibility for the content, policies, activities, products or services offered on the site.
Investing in small- and mid-cap stocks is more risky and volatile than investing in large-cap stocks. The intrinsic value of such stocks may never be recognized by the broader market.
A growth investment strategy seeks stocks that are deemed to have superior growth potential. Growth stocks offer an established track record and are perceived to be less risky than value stocks. A value investment strategy seeks undervalued stocks that show a strong potential for growth. The intrinsic value of the stocks in which a value strategy invests may be based on incorrect assumptions or estimations, may be affected by declining fundamentals or external forces, and may never be recognized by the broader market.
An actively managed portfolio is more risky than a passively managed portfolio that replicates an index because it contains fewer stocks than its benchmark index. Indexes are unmanaged, and an investor cannot invest directly in an index. However, investors may invest in an index fund, which mimics the composition of an index. There are lower costs associated with index funds, as compared to actively managed funds.
This article candidly discusses a number of individual companies. These opinions are current as of the date of this article but are subject to change. The information provided in this article does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. The information contained in the article is not guaranteed as to its accuracy or completeness. For Ariel’s holdings schedules, visit each product or fund page on this site. Click here for a fund prospectus.