Core Insights - Ariel Fund's third-quarter 2025 performance was strong, returning +12.39%, outperforming the Russell 2500 Value Index's +8.17% but slightly lagging behind the Russell 2000 Value Index's +12.60% [1] - The rally in U.S. equities was driven by the Federal Reserve's first rate cut of the year, strong corporate earnings, and increased market participation, particularly in technology and small-cap stocks [1] Company Highlights - Sphere Entertainment Co. (NYSE:SPHR) showed a one-month return of 12.74% and a 52-week gain of 47.93%, closing at $65.15 per share with a market capitalization of $2.345 billion on October 23, 2025 [2] - The company is benefiting from strong business fundamentals and demand for its production of The Wizard of Oz, with expectations for continued financial growth as it scales concert residencies and launches the 'Sphere Network' of smaller venues [3] - Sphere Entertainment Co. holds a 33% stake in Madison Square Garden Entertainment (MSGE), and the redevelopment plans for Penn Station could enhance the value of MSG Entertainment's real estate and air rights [3] - The Las Vegas venue and the scalable franchise potential of Sphere Entertainment are viewed as compelling long-term investment opportunities that remain undervalued [3]