Ariel Global Fund Added Walt Disney Company (DIS) Citing Growth Signals

Ariel Investments, an investment management company, released its “Ariel Global Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter marked a period of extremes. The stocks fell after the “Liberation Day” tariff announcement in early April and rebounded following the pause in tariff implementation. Enthusiasm for artificial intelligence (AI) themed stocks and robust corporate earnings results lifted global and U.S. indices to new highs. Against this backdrop, the Ariel Global fund traded +7.38% higher in the quarter, compared to the +11.53% return of the MSCI ACWI Index and +5.84% return of the MSCI ACWI Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Ariel Global Fund highlighted stocks such as The Walt Disney Company (NYSE:DIS). The Walt Disney Company (NYSE:DIS) is an entertainment company that operates through the Entertainment, Sports, and Experiences segments.  The one-month return of The Walt Disney Company (NYSE:DIS) was -1.55%, and its shares gained 23.14% of their value over the last 52 weeks. On September 16, 2025, The Walt Disney Company (NYSE:DIS) stock closed at $115.23 per share, with a market capitalization of $207.176 billion.

Ariel Global Fund stated the following regarding The Walt Disney Company (NYSE:DIS) in its second quarter 2025 investor letter:

"We also bought The Walt Disney Company (NYSE:DIS), the storied entertainment conglomerate whose businesses span media networks, film studios, theme parks, cruise ships and consumer products. A recent pullback in the stock provided an attractive entry point. In our view, growth in Disney+ subscribers, higher average revenue per user (APRU), margin expansion in the streaming segment and greater license sales amid successful releases will result in substantial operating income growth, bolstering the company’s overall margins and free cash flow generation."

The Walt Disney Company (NYSE:DIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 111 hedge fund portfolios held The Walt Disney Company (NYSE:DIS) at the end of the second quarter, which was 104 in the previous quarter.  While we acknowledge the potential of The Walt Disney Company (NYSE:DIS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered The Walt Disney Company (NYSE:DIS) and shared the list of unrivaled stocks of the next 3 years. In its Q2 2025 investor letter, Sound Shore Management shared its confidence in The Walt Disney Company's (NYSE:DIS) upside potential. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.