Leading entertainment company, ViacomCBS Inc.(VIAC, Financial) was a top contributor for the fourth consecutive quarter. Shares continued to benefit from solid earnings results and continued investor enthusiasm surrounding the launch of Paramount+ and other international streaming video on demand services. As the price of ViacomCBS Inc. substantially increased during the period, management announced an equity offering and a mandatory convertible preferred stock offering to further support investment in its streaming services. Shares began to tumble on the news, as an overleveraged family office, Archegos Capital Management, became a forced seller of the company. As prices moved closer to our assessment of intrinsic value earlier in the quarter, we reduced our position size in the company, insulating our portfolios from the largest weekly decline in the stock's history and maintaining its status as a top contributor.
From John Rogers (Trades, Portfolio)' Ariel Fund first-quarter 2021 commentary.
