During the quarter, stocks in the portfolio performed quite well. Title insurer, First American Financial Corp. (NYSE:FAF) gained +14.67% after beating EPS consensus estimates by $0.10. Better-than-expected commercial revenues and a material lowering of the loss provision rate helped the company grow revenue by 10% versus the same period one year ago. The firm has faced several headwinds due to the sluggish U.S. housing market, but there are notable signs of improvement for spring selling season which should benefit FAF. We remain confident the stock still has upside as the U.S. housing market resumes its gradual recovery.
- From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund second quarter 2017 shareholder commentary.
