Still holding Oracle stock but trimmed 'significantly,' says Ariel Investments' Bobrinskoy

分组1 - Small cap value stocks are experiencing a significant breakout this quarter, contrasting with the previous trend dominated by large cap growth stocks [2][3] - Historically, small cap value has been the best investment segment, but it has been undervalued in recent years until this quarter [2][3] - The current performance of small cap value is attributed to its relative affordability compared to the overall market, particularly the S&P 500 [3][4] 分组2 - Smaller stocks are heavily weighted in sectors such as industrials, home building, energy, and financials, which benefit from a positively sloped yield curve [5][6] - The normalization of the yield curve is advantageous for financials, which in turn supports small cap value stocks [6] - Recent data shows a 20% increase in new home sales, indicating positive momentum in the home building sector [7] 分组3 - Oracle, previously identified as a tech value stock, has seen its valuation increase significantly, moving from $146 to $350, thus no longer qualifying as a value stock [8][10] - Despite Oracle's high valuation, its strong fundamentals and business momentum justify holding onto a portion of the investment [10][11] - The strategy of trimming positions in overvalued stocks while maintaining stakes in fundamentally strong companies is emphasized [11]