John Rogers

Last Update: 01-10-2017

Number of Stocks: 185
Number of New Stocks: 8

Total Value: $8,267 Mil
Q/Q Turnover: 4%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

John Rogers Watch

  • British American Tobacco Proposes Merger With Reynolds

    British American Tobacco (LSE:BATS)(BTI) presented a merger proposal to Reynolds American Inc. (NYSE:RAI) on Friday with a total offer of $47 billion.

    The London-based tobacco company already owns 42.2% of Reynolds. British American is offering $56.50 per share for the remaining 57.8% of the company, of which $24.13 would be in cash and the remaining $32.37 would be in British American shares. The proposal represents a 20% premium over Reynolds’ closing price on Oct. 20.


  • Ariel Fund 3rd Quarter Commentary

    Quarter Ended September 30, 2016


  • Ariel Appreciation Fund 3rd Quarter Commentary

    Equity markets shook off the malaise that took hold at the end of the second quarter—remember Brexit?—to post a strong quarter all around. Returns were especially good in domestic small caps and international stocks. While the S&P 500 Index advanced +3.85%; the Russell 2000 Index jumped +9.05%; and the MSCI EAFE Index rose +6.43%. The third quarter was the best period for the MSCI EAFE Index in nearly three years, and the best for the Russell 2000 Index in almost two years. We do not believe much changed to drive this result: we simply think people recognized the economy is sound and interest rates remain low—a good environment for equities. This quarter, Ariel Appreciation Fund rose +7.00%, outperforming the Russell Midcap Value Index’s +4.45% rise, as well as the +4.52% return of the Russell Midcap Index.

    Some of our holdings rose nicely during the quarter. Cutting tools maker Kennametal Inc. (NYSE:KMT) jumped +32.19% as its modernization efforts started to gain traction. To a large extent this means more automation, which increases efficiency and slashes costs. The company is also focusing on its more profitable, large customers and shedding smaller ones. We see these moves as an essential part of making its moat wider and better; we think the financial benefits will be significant and long lasting. Also, asset manager and financial advisory firm


  • John Rogers' Ariel Funds Commentary for Month of September

    Equities had strong returns in the third quarter of 2016, and predictably the urge to sell U.S. stocks is rising. One group advances the “take some chips off the table” strategy. After small caps of the Russell 2000 Index leapt +9.05% and the S&P 500 Index’s large caps advanced +3.85% this quarter, they wish to capture gains by going to cash. Others make a valuation argument: the S&P 500 Index has a price/earnings (P/E) ratio approaching 25x, above the long-term average of 16x. From this perspective, equities are expensive and are likely to revert toward the mean. These views are common: more than half of professional investors expect either a bear market or a correction.


  • John Rogers Trims Spartan Motors, Gaia

    John Rogers (Trades, Portfolio) is the Founder of Ariel Investment LLC. He manages a portfolio composed of 192 stocks with a total value of $7,965 million. According to GuruFocus Real-Time picks, the most recent trades, done during the third quarter, are the following.

    The investor reduced his stake in Spartan Motors Inc. (NASDAQ:SPAR) by 18.27% with an impact of -0.05% on the portfolio.


  • Pier 1 Imports Swallows Poison Pill

    The board of Pier 1 Imports Inc. (NYSE:PIR) announced it had adopted a shareholders’ rights agreement on Tuesday.

    The agreement, sometimes called a poison pill, is designed to keep away unwanted takeovers. However, in this case, the agreement simply does not allow any person or group to acquire ownership of 10% or more of the company’s outstanding common stock.


  • Ariel Funds Comments on Harman Intl Industries Inc.

    Also, Harman Intl Industries, Inc. (NYSE:HAR) fell -19.07% in the second quarter, after a disappointing earnings report. The company missed estimates and also lowered its full-year guidance. Results in its professional unit were considerably weaker, down more than 5% from a year earlier. We continue to think the shift toward “infotainment” will turn the brand around.

    From John Rogers (Trades, Portfolio)' second quarter 2016 Ariel Global Fund commentary.   

  • Ariel Funds Comments on Baidu Inc.

    Other holdings experienced a short-term struggle. Baidu, Inc. (NASDAQ:BIDU) shares fell -13.48% in the second quarter. Chinese regulators opened an investigation on news that a university student died after using the site to find alternative treatments for cancer. Baidu implemented changes, such as capping the number of ads per page to 30% and establishing a 1 billion yuan fund to fight fraud.

    From John Rogers (Trades, Portfolio)' second quarter 2016 Ariel Global Fund commentary.   

  • Ariel Funds Comments on GlaxoSmithKline plc

    In addition, GlaxoSmithKline plc (NYSE:GSK) rallied +7.74%1 in the second quarter, after reporting profit growth for the first time since 2013. Glaxo is seeing benefits from its purchase of Novartis’ vaccines unit. Demand for vaccines and new drugs helped offset declines in the sales of blockbuster asthma medication Advair.

    From John Rogers (Trades, Portfolio)' second quarter 2016 Ariel Global Fund commentary.   

  • Ariel Funds Comments on Johnson & Johnson

    Medical giant Johnson & Johnson (NYSE:JNJ) rallied +12.66%, due to a strong earnings report. In April the company beat analysts’ estimates and also raised guidance for the year. Earnings were driven by strong sales of drugs like Stelara and Xarelto. At this point pharmaceuticals are the company’s largest business division—ahead of powerhouses such as medical devices and consumer health products. We think the trajectory of the business continues to point upward.


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