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 Eversource Energy (NYSE:ES). Eversource Energy (NYSE:ES) is a utility company that delivers electricity and natural gas to residential and commercial customers across the northeastern United States. The one-month return of Eversource Energy (NYSE:ES) was -8.46% while its shares traded between $52.28 and $76.41 over the last 52 weeks. On March 30, 2026, Eversource Energy (NYSE:ES) stock closed at approximately $68.41 per share, with a market capitalization of about $25.71 billion.
Ariel Investments’ Global Fund stated the following regarding Eversource Energy (NYSE:ES) in its Q4 2025 investor letter:
“Lastly, we initiated a position in Eversource Energy (NYSE:ES), a regulated utility serving customers across Connecticut, New Hampshire and Western Massachusetts. Following a challenging year, we thought the divestiture of non-core assets and the completion of a major offshore wind project would contribute to greater operational stability. However, when these leading indicators were no longer moving in the right direction, we exited the position.”
Eversource Energy (NYSE:ES) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 42 hedge fund portfolios held Eversource Energy (NYSE:ES) at the end of the fourth quarter, which was 41 in the previous quarter. While we acknowledge the risk and potential of Eversource Energy (NYSE:ES) 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 Eversource Energy (NYSE:ES) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Eversource Energy (NYSE:ES) and shared the list of the quality stocks with the highest dividends. 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.
