Ariel Investments Reports Q3 Outperformance Across Value Strategies as Stock Picks Drive Results

Overview

• Ariel said its Q3 composites topped benchmarks, including Small Cap Concentrated Value at +15.08% gross versus the Russell 2000 Value at +12.60% and Mid Cap Value at +9.62% versus the Russell Midcap Value at +6.18%.
• Brink’s rallied after exceeding quarterly earnings and raising guidance, with broad organic growth, stronger profitability, and accelerating free cash flow highlighted in the letter.
• Kennametal fell on disappointing results and a restated 2026 outlook below consensus, with management expecting another EPS decline as volumes soften and end markets remain weak.
• Norwegian Cruise Line advanced on resilient demand, healthy onboard spending, reaccelerating bookings, and balance-sheet de-leveraging, and it remains outside the global minimum tax due to its Bermuda domicile.
• Ariel initiated The Middleby Corporation, citing long-term automation demand despite near-term pressure, while CarMax was the largest detractor on lower unit sales and higher loan-loss provisions that the firm views as cyclical.