The positive results for Ariel Fund were largely driven by strong stock selection within the producer durables and financial services sectors, contributing +149 basis points and +120 basis points, respectively to returns relative to the Russell 2500 Value Index. Bar code manufacturer, Zebra Technologies (NASDAQ:ZBRA) was the top performer within the producer durables sector, delivering +34.09% gain. Broad based demand both geographically and by product end market drove a top and bottom line earnings beat. The company also made significant progress reducing its financial leverage by surpassing the full year debt pay down commitment by more than 50%. Moreover, management issued quarterly and full year 2018 guidance that exceeded consensus estimates. We continue to believe ZBRA remains underpriced relative to its intrinsic value.
From John Rogers (Trades, Portfolio)' first quarter 2018 Ariel Fund shareholder letter.
