Ariel Fund’s Q2 2025 Investor Letter

Ariel Investments, an investment management company, released its “Ariel Fund” second-quarter 2025 investor letter. The second quarter was a volatile period. Stocks fell sharply in early April following the “Liberation Day” tariff announcement, pushing the market close to bear market territory. Later, the pause in plans led to a strong recovery. Excitement for artificial intelligence (AI) stocks reignited, with positive economic data and strong corporate earnings driving U.S. indices to new all-time highs. Growth stocks outperformed value stocks, and large caps continued to outperform their small-cap counterparts. Against this backdrop, Ariel Fund returned 6.96% in the quarter, lagging behind both the Russell 2500 Value Index’s +7.29% return and exceeding the Russell 2000 Value Index’s +4.97% gain. For more information on the fund’s top picks in 2025, please check its top five holdings.

A copy of Ariel Fund’s Q2 2025 investor letter can be downloaded here.