2024-07-04 05:00:00 ET
Summary
- Ariel Investments, LLC is a global value-based asset management firm founded four decades ago in 1983. Ariel serves individual and institutional investors through five no-load mutual funds and eleven separate account strategies.
- Ariel Emerging Markets Value Composite increased +9.00% gross of fees in the quarter, significantly outperforming both the MSCI EM Index and MSCI EM Value Index, which returned +2.37% and +1.31%, respectively.
- This quarter, we took profits in names that have strongly outperformed and redeployed proceeds towards six new opportunities we believe present greater upside potential.
- We purchased Vanguard FTSE Emerging Markets ETF as a cash alternative during the month.
Emerging market equities delivered positive returns in the first quarter as prospects for the global economy improved. Investor enthusiasm around artificial intelligence ((AI)) lifted the technology-heavy Taiwanese and South Korean markets; and India rallied on strong domestic growth driven by robust manufacturing activity and infrastructure spend as well as expectations for political and economic policy continuity following the Spring elections. By comparison, China remains challenged as mixed economic data, ongoing pressures in the real estate market and piecemeal stimulus measures continue to be problematic. Rising long-term interest rates in Brazil and concerns regarding greater government interference in some of the country's bellwether companies also weighed on investor sentiment. We believe the market is over-reacting to these challenges and stand ready to take advantage of such regional pullbacks as they present new, compelling mispriced opportunities. Against this backdrop, the Ariel Emerging Markets Value Composite increased +9.00% gross of fees (+8.74% net of fees) in the quarter, significantly outperforming both the MSCI EM Index and MSCI EM Value Index, which returned +2.37% and +1.31%, respectively....
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Ariel Investments Emerging Markets Value Q1 2024 Commentary