Alternatively, several positions weighed on performance during the period. Global leader in for-profit education, Adtalem Global Education (ATGE, Financial) traded lower throughout the quarter. Shares were impacted by the announcement of President Biden’s American Families Plan which includes a proposal for two years of “free” community college. Mixed quarterly earnings results and the resignation of the company’s Chief Financial Officer, General Counsel and long-time board member also weighed on performance. Nonetheless, ATGE reiterated full year revenue guidance, raised earnings-per-share expectations, and remains confident in its attractive post-acquisition earnings power. While investors remain skeptical of the near-term backdrop, we believe ATGE is on the path to be number one in undergrad and graduate nursing enrollment in the U.S. and the largest producer of African-American MDs, PhDs and nurses in the country.
From John Rogers (Trades, Portfolio)' Ariel Fund second-quarter 2021 commentary.
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