Skip to content
Product_Domestic_Hero Banner

Ariel Small/Mid Cap Value

This separately managed account strategy invests in high-quality, undervalued small and medium-sized companies.

Our Portfolio Managers

John (1)
John W. Rogers, Jr.

Founder, Chairman, Co-CEO & Chief Investment Officer

JOHN_MILLER_optimized
John P. Miller, CFA®

Senior Vice President

Products_Domestic_Philosophy(2)(optimized)

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

Teamwork

Long-tenured colleagues
Collective experience leveraged
Aligned incentives
Inclusion

We Reject

Short termism

Trading mentality
Risk on/risk off investing
Overpaying

Group think

Conventional wisdom
Closet indexing
Volatility equals risk

All-purpose strategies

Go anywhere approaches
Thematic investing
Macro-economic prognostications

Individualism

Job hoppers
Smartest in the room mentality
Winner takes all
Elitism

*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.

Industry Weightings

(as of 12/31/2022)
(as of 12/31/2022) Ending Weight (%) Russell 2500™ Value Index (%) Russell 2500™ Index (%) S&P 500® Index (%)
Consumer Discretionary
Ending Weight (%)
35.38
Russell 2500™ Value Index (%)
14.25
Russell 2500™ Index (%)
14.07
S&P 500® Index (%)
13.03
Financials
Ending Weight (%)
25.00
Russell 2500™ Value Index (%)
21.72
Russell 2500™ Index (%)
15.99
S&P 500® Index (%)
11.28
Industrials
Ending Weight (%)
20.98
Russell 2500™ Value Index (%)
18.18
Russell 2500™ Index (%)
20.24
S&P 500® Index (%)
13.06
Health Care
Ending Weight (%)
7.21
Russell 2500™ Value Index (%)
8.77
Russell 2500™ Index (%)
12.74
S&P 500® Index (%)
15.02
Real Estate
Ending Weight (%)
5.59
Russell 2500™ Value Index (%)
11.46
Russell 2500™ Index (%)
8.03
S&P 500® Index (%)
2.81
Consumer Staples
Ending Weight (%)
2.33
Russell 2500™ Value Index (%)
2.81
Russell 2500™ Index (%)
3.04
S&P 500® Index (%)
6.53
Utilities
Ending Weight (%)
2.14
Russell 2500™ Value Index (%)
4.79
Russell 2500™ Index (%)
3.58
S&P 500® Index (%)
3.45
Cash
Ending Weight (%)
1.37
Russell 2500™ Value Index (%)
0.00
Russell 2500™ Index (%)
0.00
S&P 500® Index (%)
0.00
Basic Materials
Ending Weight (%)
0.00
Russell 2500™ Value Index (%)
4.80
Russell 2500™ Index (%)
4.25
S&P 500® Index (%)
1.98
Energy
Ending Weight (%)
0.00
Russell 2500™ Value Index (%)
5.12
Russell 2500™ Index (%)
5.92
S&P 500® Index (%)
5.44
Technology
Ending Weight (%)
0.00
Russell 2500™ Value Index (%)
6.68
Russell 2500™ Index (%)
10.72
S&P 500® Index (%)
24.74
Telecommunications
Ending Weight (%)
0.00
Russell 2500™ Value Index (%)
1.41
Russell 2500™ Index (%)
1.42
S&P 500® Index (%)
2.66

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.

Ariel Investments, LLC (Ariel) is a Delaware limited liability company and federally registered investment adviser regulated by the U.S. Securities and Exchange Commission. Ariel is headquartered in Chicago, Illinois, with offices in New York, San Francisco, and Sydney. Ariel offers investment strategies that seek long-term capital appreciation by investing primarily in equity securities. Ariel utilizes a bottom-up, fundamental analysis to select quality company stocks. Taking a long-term view and applying independent thinking to our investment decisions, Ariel spans the market cap spectrum from small to large and covers the globe with international and global offerings. Ariel claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

The Ariel Small/Mid Cap Value Composite seeks long-term capital appreciation by investing in small/mid cap undervalued companies that show strong potential for growth. The Ariel Small/Mid Cap Value Composite differs from its benchmark, the Russell 2500™ Value Index, with fewer holdings concentrated in fewer sectors.

Performance results are net of transaction costs and reflect the reinvestment of dividends and other earnings. Net returns reflect the deduction of the maximum advisory fee in effect for the respective period. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size. Fee information is available upon request and may also be found in Ariel’s Form ADV, Part 2. Results shown may be preliminary. Returns are calculated in U.S. dollars. Past performance does not guarantee future results. Investing in small and mid-cap stocks is more risky and more volatile than investing in large-cap stocks. The intrinsic value of the stocks in which the portfolio invests may never be recognized by the broader market. The portfolio 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.

The Ariel Small/Mid Cap Value Composite has been examined for the periods from January 1, 2001 through December 31, 2021. A copy of the examination report is available upon request. Click here to obtain a GIPS Composite Report.

Indexes are unmanaged. An investor cannot invest directly in an index.

The Russell 2500™ Value Index measures the performance of the small to mid-cap value segment of the U.S. equity universe. It includes those Russell 2500 companies with relatively lower price-to-book ratios, lower forecasted growth values and lower sales per share historical growth. Its inception date is July 1, 1995.

The Russell 2500™ Index measures the performance of the small to mid-cap segment of the U.S. equity universe, commonly referred to as “smid” cap. The Russell 2500 Index is a subset of the Russell 3000® Index. It includes approximately 2500 of the smallest securities based on a combination of their market cap and current index membership. Its inception date is June 1, 1990.

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.

Ending Weight is the value of the holding relative to the portfolio’s total assets as of the report date.