Ariel Fund Focus: High Exposure to Financials & Healthcare

Introduction

The Ariel Appreciation Fund, managed by John W. Rogers Jr., presents a concentrated investment strategy as of December 31, 2025. The portfolio is characterized by significant holdings in specific sectors, primarily Financial Services and Healthcare, with a total value exceeding $9 billion.

Top Holdings Analysis

The fund's largest individual holding by value is Madison Square Garden Entertainment (MSGE), representing approximately $370 million, or 4.01% of the portfolio. Other significant positions include Affiliated Managers Group (AMG), Norwegian Cruise Lines Holdings (NCLH), Sphere Entertainment (SPHR), and Jones Lang LaSalle (JLL), each accounting for over $300 million in value.

• MSGE: Largest position, 4.01% allocation, but saw an 11% reduction in shares.
• AMG: 3.68% allocation, experienced a 6.46% decrease in shares.
• NCLH: 3.46% allocation, largest share increase (18.76%) among top holdings.
• SPHR: 3.25% allocation, saw a significant 47.14% reduction in shares.
• JLL: 3.25% allocation, moderate decrease of 6.06% in shares.

Concentration in Financial Services and Healthcare

The fund demonstrates a clear preference for Financial Services and Healthcare sectors. Financial Services includes holdings like AMG, JLL, and LAZ, collectively representing a substantial portion of the portfolio. Healthcare is represented by CRL, NVST, and PBH. This sector concentration is a defining characteristic of the Ariel Appreciation Fund's investment approach.

Recent Changes in HoldingsSeveral holdings show notable changes from the previous period:

• NCLH: Cruise line holdings increased significantly by 18.76% in shares.
• OSW: OneSpaWorld saw a healthy 6.23% increase in shares.
• PBH: Prestige Consumer Healthcare increased by 14.12% in shares.
• MSGE: Experienced an 11% reduction in shares.
• AMG: Holdings decreased by 6.46%.
• SPHR: Suffered a substantial 47.14% reduction in shares.

These changes reflect the fund manager's active decision-making process, adjusting positions based on perceived opportunities or risks.

Investment Strategy FocusThe Ariel Appreciation Fund appears to employ an investment strategy focused on achieving capital appreciation through concentrated holdings in specific sectors, particularly Financial Services and Healthcare. The fund manager, John W. Rogers Jr., likely seeks opportunities in companies with strong growth potential within these sectors. The significant allocation to Financial Services (including managers and REITs) and Healthcare (across various sub-sectors) suggests a strategic tilt towards industries perceived as having favorable long-term prospects.