ARIEL INVESTMENTS, LLC

The fund underwent a period of active rebalancing during the quarter. The activity summary indicates a defensive posture, with 32 stakes reduced compared to only 11 increases. This suggests the manager was pruning positions that may have reached full valuation or reallocating capital to maintain target weights. Despite the high number of reductions, the portfolio value increased, indicating that the underlying asset prices performed well, offsetting the divestitures.

Key Holdings

The portfolio exhibits a high level of concentration in its top tier, with the largest position, Sphere Entertainment Co (SPHR), accounting for 7.40% of the total portfolio value ($372.36M). The top ten positions are substantial, collectively representing a significant portion of the fund's assets. Notably, the top four holdings—SPHR, Norwegian Cruise Line, Resideo Technologies, and Jones Lang LaSalle—range between 5.6% and 7.4% allocation, indicating strong conviction in these specific consumer cyclical and real estate names.