Fund Performance - Ariel Fund delivered a +3.22% return in Q4 2025, in line with Russell 2500 Value Index (+3.15%) and Russell 2000 Value Index (+3.26%) [1] - For the trailing one-year period, the Fund advanced 14.15%, outperforming Russell 2500 Value Index (+12.73%) and Russell 2000 Value Index (+12.59%) [1] - The Fund's 5- and 10-year average annual returns were +9.36% and +9.51%, respectively [1] Market Conditions - Performance attributed to resilient corporate earnings, easing inflation, and rising expectations for accommodative monetary policy [1] - Continued enthusiasm around artificial intelligence and cloud infrastructure supported markets, although gains were concentrated in a narrow group of large-cap stocks [1] Outlook and Strategy - The firm maintains a measured and cautious outlook for 2026, citing geopolitical risks, fiscal constraints, labor market dynamics, and elevated market concentration as potential volatility sources [1] - Management reaffirmed a long-term, bottom-up approach, emphasizing strong balance sheets, durable fundamentals, and valuation discipline [1] Company Focus: DENTSPLY SIRONA Inc. - DENTSPLY SIRONA Inc. is a dental equipment and consumables manufacturer with a one-month return of -10.25% and a market capitalization of approximately $2.47 billion [2] - The company has faced challenges in its core capital equipment business due to lower-cost technology alternatives, but the dental market is viewed favorably for its steady growth and lower reimbursement risk [3] - Management is executing a strategic reset focused on innovative product development, operational efficiencies, and emerging market growth to strengthen competitive positioning [3]