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Ariel Capital's John Rogers Trims Sotheby’s, DeVry, Hospira, IPG, Others

November 18, 2013 | About:
Sally Jones

Sally Jones

49 followers
Chicago-based Ariel Capital Management is led by Guru John Rogers who has earned a number of monikers, including “master wealth builder,” "the turtle” and “The Patient Investor,” after his column by the same name. He is also listed in a new book, “The World’s 99 Greatest Investors: the Secret of Success,” by Magnus Angenfelt.

The portfolio of John Rogers currently lists 173 stocks, 29 of them new, with a total value of $6.86 billion and a quarter-over-quarter turnover of 8%. The portfolio’s top sector weightings are consumer cyclical at 24.6%, financial services at 22.8% and industrials at 19.3%. John Rogers is averaging a 12-month return of 19.34%. In 2012, Ariel Fund returned 20.32% compared to the S&P’s 15.4%.

Here’s a review of Rogers’s four high-impact reductions made in the third quarter of 2013, starting with his reduction of Sotheby’s, reporting a net loss of $30.1 million, up 7% over last year. For the third quarter of 2013, the auctioneer reported revenue growth of 77% over last year in private sale commissions at $11.3 million, and a 16% increase in auction commission revenues of $6.6 million.

Sotheby’s (BID): Reduced

Impact to Portfolio: -0.56%

Current Shares: 2,211,204

Up 79% over 12 months, Sotheby’s, an auctioneer of authenticated fine art, antiques and decorative art, jewelry and collectibles, has a market cap of $3.6 billion. Shares trade with a P/E of 34.40. The dividend yield is 0.30%.

Guru Action: As of Sept. 30, 2013, John Rogers reduced his position by 29.32%, unloading 917,170 shares at an average price of $44.52 per share, for a gain of 17.8%.

The current share price is around $51.93, with a change from average up 17%.

Over a remarkable five-year history, John Rogers gained 104% on 3,689,083 shares bought at an average price of $25.67 per share. Selling 8,289,427 shares at an average price of $25.14 per share, he made a gain of 109%.

See more guru trading in third quarter, and recent insider activity.

Track historical pricing, revenue and net income:

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Interpublic Group of Companies Inc. (IPG): Reduced

Impact to Portfolio: -0.49%

Current Shares: 14,479,119

Up 73% over 12 months, Interpublic Group of Companies Inc. , a global advertising and marketing services company, has a market cap of $7.14 billion. Shares trade with a P/E of 22.60. The dividend yield is 1.70%.

Guru Action: As of Sept. 30, 2013, John Rogers reduced his position by 12.56%, selling 2,080,387 shares at an average price of $16.12 per share, for a gain of 6.4%.

The current share price is around $16.95, with a change from average up 5%.

Overall, John Rogers gained 122% on 21,692,035 shares bought at an average price of $7.74 per share. Selling 30,636,836 shares at an average price of $8.36 per share, he gained 105%.

Gurus were very active in the third quarter, and insiders were selling.

Track historical pricing, revenue and net income:

1384805455984.png

DeVry Education Group Inc. (DV): Reduced

Impact to Portfolio: -0.41%

Current Shares: 2,911,676

Up 39% over 12 months, DeVry Education Group Inc. has a market cap of $2.27 billion. Shares trade with a P/E of 243.20. The dividend yield is 0.90%.

Guru Action: As of Sept. 30, 2013, John Rogers reduced his position by 21.74%, unloading 808,789 shares at an average price of $30.83 per share, for a gain of 16%.

The current share price is around $35.77, with a change from average up 16%.

Over a trading history of mixed results, John Rogers had a loss of 12% on 7,894,436 shares bought at an average price of $40.62 per share. Selling 4,982,760 shares at an average price of $34.12 per share, he made a gain of 5%.

See more guru trading in third quarter, and recent insider activity.

Track historical pricing, revenue and net income:

1384805048287.png

Hospira Inc. (HSP): Reduced

Impact to Portfolio: -0.23%

Current Shares: 4,436,305

Up 33% over 12 months, the drug manufacturer Hospira Inc. has a market cap of $6.53 billion. Shares trade with a P/B of 2.20. The company does not pay a dividend.

Guru Action: As of Sept. 30, 2013, John Rogers reduced his position by 7.79%, unloading 374,800 shares at an average price of $39.85 per share, for a loss of 1.2%.

The current share price is around $39.50, with a change from average down 1%.

Over a five-year history, John Rogers gained 11% on 5,851,513 shares bought at an average price of $35.53 per share. Selling 1,415,208 shares at an average price of $41.03 per share, he took a loss of 4%.

Check out recent guru trading and insider selling.

Track historical pricing, revenue and net income:

1384805241711.png

John W. Rogers, Jr., founded Ariel Capital Management LLC in 1983. Rogers is the firm’s chairman, CEO and CIO, as well as the lead portfolio manager of the Ariel Small and Small/Mid Cap Value Products and Ariel Fund. He is also the co-portfolio manager of the Ariel Mid Cap Value Product and Ariel Appreciation Fund.

Here is the complete portfolio of John Rogers.



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GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction.

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.3/5 (3 votes)

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