Ariel Investments, an investment management company, released its “Ariel Global Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equities rallied in the third quarter, driven by AI enthusiasm, resilient corporate earnings, the first U.S. rate cut of the year, and targeted policy easing across key regions. Against this backdrop, the Ariel Global fund traded +4.99% higher in the quarter, compared to the +7.62% return of the MSCI ACWI Index and +6.13% return of the ...

Core Insights - Diamond Hill Capital's "Large Cap Fund" reported a decline in portfolio performance, underperforming the Russell 1000 Value Index in Q3 2025 despite a market rally [1][3] - The Russell 3000 Index gained 8% in Q3 2025, leading to over 14% returns for the calendar year [1] Company Highlights - FedEx Corporation (NYSE:FDX) was highlighted as a new position in the Diamond Hill Large Cap Fund's Q3 2025 investor letter [3] - FedEx's one-month return was 8.06%, but it experienced a 9.57% decline in share value over the past 52 weeks, closing at $256.10 on November 5, 2025, with a market capitalization of $60.428 billion [2][4] - The company reported a 3% year-over-year revenue increase in Q1 2026, attributed to strong performance in U.S. domestic package services [4] Investment Sentiment - FedEx is not among the top 30 most popular stocks among hedge funds, with 67 hedge fund portfolios holding its shares at the end of Q2 2025, an increase from 62 in the previous quarter [4] - While FedEx is recognized for its potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]

Group 1: Fund Performance - Longleaf Partners Fund returned -0.33% in Q3 2025, underperforming the S&P 500's 8.12% and the Russell 1000 Value's 5.33% [1] - The firm is dissatisfied with the portfolio's flat performance, focusing on investments in real assets and brands that generate growing free cash flow (FCF) per share [1] - The fund anticipates that its ~10x FCF multiple could rise to the mid-teens as management implements strategies to improve margins and increase share repurchases [1] Group 2: FedEx Corporation Overview - FedEx Corporation (NYSE:FDX) had a one-month return of 1.44% and a 52-week loss of 11.34%, closing at $238.17 per share with a market capitalization of $56.925 billion on October 23, 2025 [2] - The company is focused on operational improvements despite a challenging macro environment, with expectations for significant value realization from the separation of its Freight unit next year [3] Group 3: Investment Sentiment - FedEx Corporation is not among the 30 most popular stocks among hedge funds, with 67 hedge fund portfolios holding the stock at the end of Q2 2025, up from 62 in the previous quarter [4] - The company's revenue increased by 3% year-over-year, driven by strength in U.S. domestic package services [4] - While FedEx shows potential as an investment, certain AI stocks are considered to offer greater upside potential and less downside risk [4]