Ariel Investments, an investment management company, released its “Ariel Global Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Ariel Global Fund delivered solid results in 2025, rising +23.30% for the year and outperforming both the MSCI ACWI and MSCI ACWI Value indices, although it lagged benchmarks in the fourth quarter with a +2.88% return versus +3.29% and +3.66%, respectively, for the indexes. The quarter unfolded against a constructive global backdrop, as moderating inflation, easing financial conditions, and resilient corporate earnings supported equities, with strength led by U.S. mega-cap technology stocks, improving conditions in Europe and Japan, and a strong full-year rebound in China. Performance was driven primarily by stock selection, with gains in financials and information technology offset by weakness in consumer discretionary and healthcare holdings, while several individual positions faced short-term pressures from higher costs, restructuring charges, or softer demand. Looking ahead, management remains optimistic on international equities, citing improving corporate fundamentals, supportive policy environments, and attractive valuations relative to growth prospects, while emphasizing that increasing market dispersion and a broadening of leadership beyond U.S. mega-cap stocks create a favorable environment for active, bottom-up stock selection focused on companies with strong balance sheets, durable earnings, and long-term structural growth drivers. In addition, you can check the Fund’s top 5 holdings for its best picks for 2025.
In its fourth-quarter 2025 investor letter, Ariel Investments’ Global Fund highlighted stocks like AT&T Inc. (NYSE:T). AT&T Inc. (NYSE:T) is a telecommunications company providing wireless, broadband, and media services to consumers and businesses across the United States. The one-month return of AT&T Inc. (NYSE:T) was 3.73% while its shares traded between $22.95 and $29.79 over the last 52 weeks. On March 30, 2026, AT&T Inc. (NYSE:T) stock closed at approximately $28.78 per share, with a market capitalization of about $200.71 billion.
Ariel Investments’ Global Fund stated the following regarding AT&T Inc. (NYSE:T) in its Q4 2025 investor letter:
“We added AT&T, Inc. (NYSE:T), a leading U.S. telecom provider offering wireless and fiber services. The company is building out the largest fiber network in the U.S., which not only delivers strong returns but also strengthens its wireless business through service convergence. Fiber is emerging as the preferred broadband technology and combining fiber with wireless has shown to reduce churn and improve customer lifetime value. Meanwhile, AT&T is returning excess capital to shareholders through dividends and buybacks, while the industry’s competitive yet rational pricing environment supports stability. We see this as a compelling long-term opportunity driven by scale, convergence and disciplined capital deployment.”
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AT&T Inc. (NYSE:T) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 77 hedge fund portfolios held AT&T Inc. (NYSE:T) at the end of the fourth quarter, which was 84 in the previous quarter. While we acknowledge the risk and potential of AT&T Inc. (NYSE:T) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AT&T Inc. (NYSE:T) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered AT&T Inc. (NYSE:T) and shared the list of best undervalued stocks under $50 to invest in now. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
