Ariel Investments
Ariel Investments Small Cap Value Strategy
US Small-cap Value
Dec 2025 → Sep 2026
Our archive holds 4 letters from this strategy, behind 12 investment theses and positions in 29 companies. Every quote below is copied verbatim from the letter it came from.
4 letters in 2 years · follow all of Ariel Investments for every strategy.
Performance
as of Sep 30, 2026 · net of fees · USD · Tax-Exempt Composite
- 1Y+17.5%index +20.8%
Index: Russell 2000 Value Index
| 1Y | |
|---|---|
| Ariel Investments Small Cap Value Strategy | +17.5% |
| Russell 2000 Value Index | +20.8% |
Disclaimer
These figures are copied from the manager’s latest letter, as of Sep 30, 2026. They were extracted automatically, have not been verified by HF Best Ideas and may contain errors. They cover a single share class, in the currency and fee basis stated above; other share classes and your own returns will differ. This is not investment advice, nor an offer to buy or sell any fund. Past performance does not predict future returns.
Read full disclosures →What it bought and sold
Conversely, we exited Leslie's, Inc. (LESL) as continued operating deterioration, elevated leverage and rising liquidity concerns weakened our conviction in the investment case.
Also during the quarter, we acquired ADI Global Distribution, Inc. (ADIG) following its spin-off from our existing holding, Resideo Technologies, Inc. (REZI).
We also exited niche IT consulting firm Hackett Group, Inc. (HCKT) to pursue other opportunities.
Also during the quarter, we initiated a position in Haemonetics Corporation (HAE), a developer and distributor of a broad portfolio of hematology products and solutions.
We successfully sold out of global leader in electrical protection and connection solutions, nVent Electric plc (NVT) as the name grew beyond the upper limit of Ariel Small Cap Value’s capitalization range in the quarter.
By comparison, we exited specialty cutting tool insert maker, Kennametal, Inc. (KMT) on valuation.
We added Masco Corporation (MAS), the world’s largest manufacturer of plumbing fixtures and a leading provider of paint in the United States.
Also held
- Midera Food Processing, Inc.
- Norwegian Cruise Line Holdings Ltd.
- Generac Holdings, Inc.
- Middleby Corporation
- Zebra Technologies Corporation
- Haemonetics Corporation
- OneSpaWorld Holdings Ltd.
- Resideo Technologies, Inc.
- Charles River Laboratories International, Inc.
- Sphere Entertainment Company
- Sphere Entertainment Co.
- Prestige Consumer Healthcare Inc.
- OneSpaWorld Holdings, Ltd.
- Core Laboratories Inc.
- Brink's Company
- Lindblad Expeditions Holdings, Inc.
- Jones Lang LaSalle, Inc.
- Affiliated Managers Group, Inc.
- Madison Square Garden Entertainment Corporation
- Knowles Corporation
- First American Financial Corporation
- Core Laboratories NV
- Prestige Consumer Healthcare, Inc.
- Norwegian Cruise Line Holdings, Ltd.
- WEX, Inc.
Its investment theses
- Haemonetics CorporationSep 2026Haemonetics develops hematology products and solutions with improving profitability and plasma-franchise momentum supporting long-term growth.
- Generac Holdings Inc.Sep 2026Generac Holdings makes power generation equipment and is gaining exposure to data center power demand while preserving resilience in its core residential business.
- ADI Global Distribution, Inc.Sep 2026ADI Global Distribution is a market-share leader in security and smart-home distribution with scale advantages, growth potential, and strong cash generation.
- Sphere Entertainment Co.Jun 2026Sphere Entertainment Co. is leveraging strong demand and a potential global network of venues to drive margin expansion and long-term growth.
- Haemonetics CorporationJun 2026Haemonetics Corporation provides hematology and plasma collection solutions that should benefit from demographics, rising plasma demand, and healthcare innovation.
- Masco CorporationJun 2026Masco Corporation is a branded plumbing and paint leader with scale, strong brand equity, and margin expansion potential.
- Generac Holdings, Inc.Dec 2025Generac Holdings, Inc. is a leading power generation equipment maker with secular tailwinds in backup power and data centers supporting long-term growth and cash flow.
- RLI Corp.Dec 2025RLI Corp. is a specialty insurer with niche expertise and disciplined underwriting that supports resilient profitability and long-term earnings growth.
- FactSet Research Systems, Inc.Dec 2025FactSet Research Systems, Inc. provides deeply embedded financial data with high switching costs and scalable datasets, with AI concerns seen as overblown and efficiency gains ahead.
- Affiliated Managers Group, Inc.Dec 2025Affiliated Managers Group, Inc. benefits from strong demand for tax-aware and alternative strategies, strategic partnerships, and disciplined capital allocation to drive earnings growth.