Ariel Investments March 2016 Commentary

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Ariel Investments March 2016 Commentary

Ariel Investments commentary for the month ended March 31, 2016.

H/T Dataroma

As we examined the results of our three traditional value mutual funds this quarter, there was one common detrimental thread– the lack of utilities stocks. The sector has been on a tear, meaning that our avoidance of the area hurt short-term returns broadly. This commentary will address the performance issue, explain why people seem to gravitate toward this sector, and why we generally avoid utilities companies.

Klarman: Concentrate On Risk, Not Reward