Some of our holdings held up relatively well in the very difficult quarter. Cruise line Royal Caribbean Cruises Ltd. (NYSE:RCL) returned +13.66% after topping earnings estimates. Analysts had expected the company to earn $0.73 per share, but it actually earned $0.84. Counterintuitively, falling oil prices did not propel the beat; instead, bookings in the Caribbean and China were stronger than expected. Moreover, the company lifted its guidance for the full year. We think most investors have been too pessimistic regarding Royal’s prospects and remain so.
From John Rogers (Trades, Portfolio)' Ariel Fund Third Quarter 2015 shareholder letter.
