John W. Rogers Jr. - Ariel Appreciation Fund Investment Strategy (Dec 31, 2025)

As of Dec 31, 2025, the Ariel Appreciation Fund portfolio managed by John W. Rogers Jr. demonstrates a sophisticated investment approach with 157 positions and an average holding period of 950 quarters. The strategy focuses on Basic Materials, Communication Services, Consumer Cyclical, Consumer Defensive, Energy, Financial Services, Healthcare, Industrials, Real Estate, Technology, Utilities sectors with a typical position size of 0.7% of the portfolio.

The portfolio's risk management approach includes a maximum position size of 0.68% and sector diversification of 11%, exemplified by the case study of Madison Square Garden Entertainment Corp (MSGE). This strategic framework provides insights into John W. Rogers Jr.'s investment philosophy, risk management practices, and long-term value creation approach.

Key metrics revealing investment style, risk management, and performance characteristics

Metric	Value	Category	Description
Holding Period	2.6 years	Style	Average duration positions are maintained
Position Count	157	Style	Number of active positions in portfolio
Position Size	0.7%	Risk	Typical allocation per position
Win Rate	48.3%	Performance	Percentage of profitable positions
Average Return	855.3%	Performance	Mean return across positions
Sharpe Ratio	0.40	Performance	Return per unit of risk taken

Investment Case Study: Madison Square Garden Entertainment Corp (MSGE)

6/30/2023 - 3/27/2026

Total Return: -1.16%

Holding Period: 1001 days

Max Position Size: $274,114,914.00

Position Weight: 2.43%

6/30/2023: ENTRY(6,997,080.00 shares) @ $33.62

9/30/2023: INCREASE(199,654.00 shares) @ $32.91

12/31/2023: INCREASE(14,725.00 shares) @ $31.79

3/31/2024: DECREASE(-220,515.00 shares) @ $39.21

6/30/2024: DECREASE(-440,916.00 shares) @ $34.23

Entry Context: Initial position established based on fundamental analysis

Sector Conditions: Favorable market conditions in the sector

Risk Factors: