What Makes Banco Bilbao Vizcaya Argentaria (BBVA) a Potential Investment?

Core Viewpoint - Ariel Investments' "Ariel Global Fund" experienced a +7.38% return in Q2 2025, underperforming compared to the MSCI ACWI Index (+11.53%) and MSCI ACWI Value Index (+5.84%) amid market volatility driven by tariff announcements and AI stock enthusiasm [1] Group 1: Fund Performance - The Ariel Global Fund's performance in Q2 2025 was marked by significant market fluctuations, with stocks initially falling after the "Liberation Day" tariff announcement and then rebounding due to a pause in tariff implementation [1] - The fund's return of +7.38% was lower than the broader market indices, indicating a challenging investment environment [1] Group 2: Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) - BBVA's stock had a one-month return of 1.54% and an impressive 81.97% increase over the last 52 weeks, closing at $19.18 per share with a market capitalization of $110.412 billion on September 16, 2025 [2] - The fund highlighted BBVA's strong market position in Mexico and its growth potential driven by market share gains and favorable demographics in Turkey, alongside the benefits from falling inflation and reduced policy rates [3] - A potential merger between BBVA and Banco Sabadell could unlock significant value through market share gains and cost synergies, despite BBVA's current shares trading at a discount relative to peers [3] Group 3: Hedge Fund Interest - BBVA was held by 10 hedge fund portfolios at the end of Q2 2025, a decrease from 12 in the previous quarter, indicating a decline in popularity among hedge funds [4] - While BBVA is recognized for its investment potential, the company noted that certain AI stocks may offer greater upside potential with less downside risk [4]