Finally, global leader in for- profit education, Adtalem Global Education (ATGE, Financial), traded lower alongside the release of theBiden Administration’s proposal for Gainful-Employment regulations, however management does not expect the new rules to be problematic. Shares came under further pressure following an investor day where ATGE lowered its financial outlook for 2024 on plans to increase its marketing spend to improve brand awareness and invest in the student experience to enhance growth and retention. Although 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 2023 commentary.
