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Ariel Investments, an investment management company, released its "Small Cap Value Fund" Q2 2026 investor letter. A copy of the letter can be downloaded here. Ariel Investments said its Small Cap Value Tax-Exempt Composite gained 17.19% gross and 17.04% net in the second quarter of 2026, matching the Russell 2000 Value Index but trailing the Russell 2000's 21.49% return. The rebound was supported by easing geopolitical tensions, lower oil prices, resilient earnings, and renewed strength in technology and AI-related stocks, with strong stock selection also aiding performance. The fund enters the second half with a measured outlook, citing uneven global growth, geopolitical risks, persistent inflation, and elevated borrowing costs as potential sources of volatility. The firm remains focused on long-term value creation through disciplined, bottom-up research and investments in durable businesses with strong balance sheets, capable management, and sustainable competitive advantages. In addition, please check the Fund's top five holdings to know its best picks in 2026.

In its second-quarter 2026 investor letter, Ariel Small Cap Value Fund highlighted stocks like The Brink's Company (NYSE:BCO). The Brink's Company (NYSE:BCO) provides cash and valuables management, secure logistics, and ATM services to financial institutions, retailers, and other businesses. The one-month return of The Brink's Company (NYSE:BCO) was 13.28% while its shares traded between $84.99 and $136.37 over the last 52 weeks. On July 31, 2026, The Brink's Company (NYSE:BCO) stock closed at approximately $117.48 per share, with a market capitalization of about $4.878 billion.

Ariel Small Cap Value Fund stated the following regarding The Brink's Company (NYSE:BCO) in its Q2 2026 investor letter:

Logistics and cash management services provider, Brink's Company (NYSE:BCO), also underperformed, despite posting an earnings beat and reaffirming its full-year outlook. Cost pressures were largely contained, while underlying performance remained solid—with growth across key businesses and continued momentum in ATM Managed Services and Digital Retail Solutions. Still, the market reacted negatively to the announced acquisition of NCR Atleos because of the financial leverage and potential integration risk. In our view, BCO's long-term story remains compelling. The pending NCR Atleos acquisition is expected to expand scale and strengthen the company's position in outsourced cash and payment infrastructure. Supported by resilient operations and a consistent execution track record, we believe the market is underappreciating the company's long-term earnings power.

The Brink's Company (NYSE:BCO) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 44 hedge fund portfolios held The Brink's Company (NYSE:BCO) at the end of the first quarter, which was 37 in the previous quarter. While we acknowledge the risk and potential of The Brink's Company (NYSE:BCO) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered The Brink's Company (NYSE:BCO) and shared the company's Earnings Call Transcript. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.