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 - 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 focusing on strong balance sheets, durable fundamentals, and valuation discipline [1] Company Highlight: Sphere Entertainment Co. - Sphere Entertainment Co. (NYSE:SPHR) was highlighted as a top contributor, with a one-month return of 22.51% and a market capitalization of approximately $4.05 billion [2][3] - The company is known for its immersive Sphere venues and large-scale events, with financial results improving due to robust consumer demand for "The Wizard of Oz" [3] - The success of "The Wizard of Oz" is expected to accelerate discussions for future venues, representing a compelling long-term growth opportunity [3]