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Ariel Global Fund Q3 Letter Spotlights First Solar Surge, IntelNVIDIA Partnership, New Stakes in Humana and M&T

The fund returned 4.99% for the quarter versus 7.62% for MSCI ACWI despite an AI-driven market rally following the first U.S. rate cut.

Overview

  • Ariel released its Q3 2025 investor letter outlining performance, portfolio moves, and a market backdrop it attributes to AI enthusiasm, resilient earnings and targeted policy easing.
  • First Solar was the top quarterly contributor after an earnings beat and higher full-year guidance, with Ariel citing regained pricing power and potential support from a Section 232 polysilicon probe.
  • Intel gained on an announced partnership with NVIDIA to co-develop custom data center and PC solutions integrating NVLink with Intel’s x86 platform, and NVIDIA intends to invest $5 billion in Intel stock pending regulatory approval.
  • Ariel initiated Humana, noting a 2025 downgrade of its largest Medicare Advantage plan that removes 2026 bonus eligibility but could be reversed by 2027 Star ratings.
  • The fund bought M&T Bank for its dense regional franchise, reduced commercial real estate risk, fee-generating agency licenses and exposure to private credit partnerships.