Group 1: Market Overview - US equities experienced a rally in the third quarter of 2025, supported by a favorable macro environment despite concerns regarding tariffs, inflation, and labor market softness [1] - The Ariel Small Cap Value Tax-Exempt Composite achieved a return of +12.80% gross of fees (+12.65% net of fees), outperforming the Russell 2000 Value Index (+12.60%) and the Russell 2000 Index (+12.39%) [1] Group 2: Kennametal Inc. (NYSE:KMT) Performance - Kennametal Inc. reported a one-month return of 23.98%, but its shares declined by 2.88% over the last 52 weeks, closing at $27.66 per share with a market capitalization of $2.109 billion on November 27, 2025 [2] - The company faced disappointing quarterly results and restated its 2026 guidance below consensus, anticipating another down year for EPS due to negative volumes and end-market weakness [3] Group 3: Future Outlook for Kennametal Inc. - An expected inflection in organic growth is anticipated in the second half of 2026, driven by improving U.S. industrial activity, potential Fed rate cuts, reshoring trends, rising global auto production, and sustained strength in aerospace and defense [3] - Kennametal Inc. remains committed to shareholder returns through cash dividends and is focused on disciplined execution, simplification, modernization efforts, and a long-standing capital return strategy [3] Group 4: Hedge Fund Interest - Kennametal Inc. was held by 29 hedge fund portfolios at the end of the third quarter, a decrease from 32 in the previous quarter [4] - While Kennametal Inc. is recognized for its investment potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]