At an unprecedented moment in history, legendary value investors from Ariel Investments, Artisan Partners, GAMCO Investors, Harris Associates, Miller Value Partners and Southeastern Asset Management hosted “Invaluable Insights” — a virtual discussion on Tuesday, May 12th.
During a dynamic 90-minute conversation moderated by Ariel's Mellody Hobson, leading asset managers discussed and debated the challenges of managing portfolios during a global pandemic. With an average tenure of more than 34 years, these seven practitioners represent firms that collectively manage over $250 billion in assets:
- Rupal J. Bhansali – CIO, International and Global Equities, Ariel Investments
- G. Staley Cates – Vice Chairman, Southeastern Asset Management, Inc.
- Mario J. Gabelli, CFA – Founder, Chairman and CEO, GAMCO Investors, Inc.
- David G. Herro – Partner and CIO – International Equity, Harris Associates
- Bill Miller – Chairman and CIO, Miller Value Partners
- Daniel J. O’Keefe – Managing Director and Founding Partner Global Value, Artisan Partners
- John W. Rogers, Jr. – Chairman, Co-CEO and CIO, Ariel Investments
*As webcasts become more the norm of doing business from our homes, they are still not without their limitations. The audio during this recording at times becomes slightly distorted. Please know that sound quality is restored in a timely manner. Thank you and we hope that you enjoy this recording of Invaluable Insights.
Investing in small- and mid-cap stocks is more risky and volatile than investing in large-cap stocks. The intrinsic value of the stocks in which the Funds invests may never be recognized by the broader market. Ariel Fund and Ariel Appreciation Fund are often concentrated in fewer sectors that their benchmarks, and their performance may suffer if these sectors underperform the overall stock market. Investments in foreign securities may underperform and may be more volatile than comparable U.S. stocks because of the risks involving foreign economies and markets, foreign political systems, foreign regulatory standards, foreign currencies and taxes. The use of currency derivatives and exchange-traded funds (ETFs) may increase investment losses and expenses and create more volatility. Investments in emerging markets present additional risks, such as difficulties in selling on a timely basis and at an acceptable price. Past performance does not guarantee future results.
In this interview, the portfolio managers at Ariel Investments and other value investing firms candidly discuss individual securities, sectors, and markets. The opinions expressed are current as of the date of the interview, but are subject to change. The information provided does not constitute information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. This material should not be considered an offer for any of the securities referenced. The information contained in the interview is not guaranteed as to its accuracy or completeness.
This video mentions various sectors and specific stocks. One or more of the stocks mentioned were, as of the date of this broadcast, and may currently be held in Ariel Fund, Ariel Appreciation Fund, Ariel Focus Fund and/or Ariel Global Fund. Any holdings mentioned do not constitute all holdings in a Fund. Portfolio holdings are subject to change. The performance of any single portfolio holding is no indication of the performance of other portfolio holdings of Ariel Fund or Ariel Appreciation Fund. See current holdings information for Ariel Fund by clicking here, for Ariel Appreciation by clicking here, for Ariel Focus Fund by clicking here, for Ariel International Fund by clicking here, and for Ariel Global Fund by clicking here. Click here for a Fund prospectus.
In this presentation, Ms. Hobson states attributes the featured managers with having been “five-star managers”. Correction: These managers have each managed one or more mutual funds that have attained the designation of a 5-star rating from Morningstar, Inc. With regard to the fund managed by Ms. Bhansali that, as of the time of this presentation attained a 5-star rating, Ariel International Fund’s Overall Morningstar Rating™ is five stars for the Institutional Class among 638 Foreign Large Blend Funds for the period ended 03/31/20, and is derived only from the three-year and five-year ratings of four stars among 638 funds and five stars among 503 funds, respectively, in the category. The inception date of the Fund is 12/30/11 and therefore does not yet have performance or ratings for the ten-year period. Total returns (on which the rankings are based) would have been lower if certain fees and expenses had not been reduced during these periods. Rankings for the Investor Class differ. Past performance does not guarantee future results.
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
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