John Rogers

Last Update: 05-11-2017

Number of Stocks: 188
Number of New Stocks: 11

Total Value: $8,505 Mil
Q/Q Turnover: 5%

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

John Rogers Watch

  • John Rogers' 1st Quarter 2016 Ariel Fund Commentary

    The first quarter of 2016 was flat in some places and down slightly in others, but we doubt most investors remember it that way. The carnage in January was harsh, and daily volatility has been high, so many likely think of it as a rough three months. Yet the last half of the quarter largely recouped the losses from the first half. Among the three broad indexes tracking our asset classes, one was up a small amount and the other two were down. U.S. large caps were up a small amount. On the other hand, domestic small caps slipped a bit and foreign stocks were down. When U.S. large caps are up while U.S. small caps and foreign stocks retreat, we generally think it says more about sentiment than economics. That is, U.S. large caps are seen as providing stability whereas small caps and foreign stocks are seen as more risky. The discrepancy between domestic value and growth indexes says the same. That is, growth indexes from the large-, mid-, and small- cap universe ranged from less than +1% up to down nearly -5%, while the value counterparts were up more than +1% to +4%. For more than a year investor sentiment has gone up and down without a strong trend.

      


  • Gilead, Fossil Among Stocks Trading Below Lynch Earnings Line

    Former Magellan fund manager Peter Lynch devised a method of determining whether stocks are over or undervalued by equating $1 in earnings with $15 in stock price. The earnings line was introduced in his best-selling book “One Up on Wall Street.”


    A graph comparing the Peter Lynch earnings line with the actual stock price can be found on the summary pages of each stock on GuruFocus. The Peter Lynch Screen is also available to automatically search for high-performing undervalued stocks. Five of these picks are listed below.

      


  • Ariel Investments Discusses Banks

    Charles Bobrinskoy of Ariel Investments likes banks because they seem inexpensive and had only short-term problems. He thinks Citigroup (NYSE:C) is too difficult to analyze, but JPMorgan (NYSE:JPM) is attractive.
      


  • John Rogers' Ariel Investments March Commentary

    As we examined the results of our three traditional value mutual funds this quarter, there was one common detrimental thread— the lack of utilities stocks. The sector has been on a tear, meaning that our avoidance of the area hurt short-term returns broadly. This commentary will address the performance issue, explain why people seem to gravitate toward this sector, and why we generally avoid utilities companies.

      


  • John Rogers Ups Stake in Anixter International

    Guru John Rogers (Trades, Portfolio) got into investing in middle school. When Rogers was just 12 years old, his father began to purchase securities for his son's Christmas and birthday presents. This is when Rogers began to gain an interest in reading about the stock market. Rogers attended Princeton University where he majored in economics, and he continued his ambitious approach to learning after his graduation.


    Rogers began working as a stockbroker shortly after his graduation at William Blair & Co. before he founded Ariel Investments in 1983. Ariel Investments began as a small and mid-cap value manager, and evolved strategically looking for companies that have attractive intrinsic value through extensive research. Ariel Investments currently has 88 employees with $10 billion in assets under management.

      


  • John Rogers Invests in Bristow Group, Kindred Biosciences

    John Rogers (Trades, Portfolio), founder of Ariel Investment LLC, added to two stakes in his portfolio – Bristow Group Inc. (NYSE:BRS) and Kindred Biosciences Inc. (NASDAQ:KIN) – on March 31.


    The guru raised his stake in Bristow Group, a British helicopter services provider, nearly 24% with the acquisition of 1,895,773 shares for $18.92 per share. The deal had a 0.43% impact on Rogers’ portfolio.

      


  • John Rogers' Recent Trades

    John Rogers (Trades, Portfolio) is the founder of Ariel Investment LLC, which he started in 1983. As of 2008, the firm had over $15.5 billion in assets under management. The following are his first trades during the first quarter:


    His stake in Cowen Group Inc. (COWN) has been raised by 53.76%. The deal had an impact of 0.16% on the portfolio.

      


  • Low PS Stocks That Are Still Expensive

    According to GuruFocus' All-in-One Screener, the following are companies with a market cap above $5 billion that are trading with a very low P/S ratio.


    Progressive Corp. (PGR) is trading at about $35.48 with a P/S ratio of 1.00 and an estimated P/E multiple of 16.40. The company has a market cap of $20.73 billion and over the last 10 years, the stock has risen by 37%. During the last 52 weeks, the price has been as high as $35.50 and as low as $26.44.

      


  • John Rogers Adds to Stake in Cowen Group

    John Rogers (Trades, Portfolio) began his passion for investing at the ripe age of 12, when his father began buying him securities for Christmas and his birthday. As Rogers grew older, his passion for investing grew with him. Rogers attended Princeton University, where he majored in economics, and his thirst for learning about equities continued to grow. He then founded Ariel Investments in 1983.


    In the first quarter of 2016, Rogers added 3,957,480 shares of Cowen Group Inc. (NASDAQ:COWN).

      


  • Stocks Fall to 5-Year Lows

    According to GuruFocus, these guru stocks have reached their five-year lows: Rosetta Stone Inc. (NYSE:RST), Aegerion Pharmaceuticals Inc. (NASDAQ:AEGR), JMP Group LLC (NYSE:JMP) and Five Star Quality Care Inc. (NASDAQ:FVE).


    Rosetta Stone reached $6.85

      


  • John Rogers' Ariel Investments Commentary on February

    Lately people have been talking a lot about volatility in the stock market. Oftentimes when volatility is being discussed, the market is falling rather than rising. Strictly speaking, volatility addresses the “dispersion of returns,” or how much prices bounce around— whether up or down. It may surprise some that when standard monthly measurements are used, the broad markets have actually moved from a low level of volatility to a more normal level as returns have shifted to flat or down in recent months. The discussion of volatility does have merit—when using other measurements one can see why people are talking about it.

      


  • Tilson Explains New Short in Lumber Liquidators in 1 Word: Cancer

    Whitney Tilson (Trades, Portfolio), founder of Kase Capital Management, released a presentation Tuesday regarding his new short position in Lumber Liquidators (NYSE:LL), outlining six main reasons that may lead to a 50-50 chance of the company reaching bankruptcy.


    Tilson first announced a short position in the flooring company in November 2013 on allegations that Lumber Liquidators was selling Chinese-made flooring tainted with formaldehyde, putting customers at risk for cancer. He then covered the short this past December on a tip that company management was unaware that it was selling toxic flooring. With no “smoking gun,” Tilson wrote in the presentation that “the company was sloppy and naïve, but not evil.”

      


  • Viacom, AutoNation Among Undervalued Guru Stocks

    According to GuruFocus' All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair value is far above the current price. The following stocks are trading with a wide margin of safety and at least five gurus are shareholders.


    Viacom Inc. (VIAB) is trading at the price of $38, but the Peter Lynch earnings line gives the company a fair price of $69.91, giving the stock a margin of safety of 45%. It is trading with a PE ratio of 9.29 that is ranked lower than 85% of its competitors in the Global Media – Diversified industry. It is currently 47.20% below its 52-week high and 28.93% above its 52-week low.

      


  • Guru Stocks With High, Growing Dividend Yields

    The following are companies with high and growing dividend yields that gurus are buying according to GuruFocus' All-in-One Screener.


    The Western Union Co. (WU) has a trailing dividend yield of 3.44% with a three-year growth rate of 13.40% and a five-year growth rate of 19.20%. The stock is now trading with a trailing 12-month P/E multiple of 11.10 and an estimated forward P/E multiple of 10.29. During the last 12 months, the stock price has dropped by 7%.

      


  • John Rogers Trims Stake in Newell Rubbermaid

    John Rogers (Trades, Portfolio), founder of Ariel Investment, bought a dozen new stakes and sold a handful in the fourth quarter, but most were comparatively small. By far his largest and most numerous trades were additions or reductions to existing stakes in his portfolio.


    Rogers’ most significant fourth-quarter transaction was the reduction of his stake in Newell Rubbermaid Inc. (NYSE:NWL), an Atlanta-based consumer goods company, by nearly 60%. Rogers sold 1,966,048 shares for an average price of $43.83 per share. The deal had a -0.97% impact on Rogers’ portfolio.

      


  • John Rogers' Ariel Investments Monthly Commentary - January

    This January there have been two hot news topics: the volatile and declining stock market and the 2016 Presidential race. As for the market headlines, some report it as the worst open to a stock market year ever, but it certainly is not the worst January return in history. In politics, both primary races are more heavily contested than one would have imagined at first blush. Here, we have no desire to be partisan or to predict any outcome. Our point is simply to emphasize that while the stock market and the political arena might sizzle in the short term, only the long term really matters.

      


  • John Rogers Comments on Nordstrom Inc.

    Upscale department store Nordstrom, Inc. (NYSE:JWN) declined -25.11% after missing earnings. Broad-based weakness, largely driven by slow traffic, caused the company to earn $0.57 per share during the quarter—well short of the expected $0.72. Nordstrom slashed prices to clear inventory, which was painful short term but now puts it in shape to succeed from this point forward.

    From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund 4th quarter 2015 commentary.  


  • John Rogers Comments on Mattel

    Toy-maker Mattel, Inc. (NASDAQ:MAT) returned +31.09% after naysayers started turning positive. For some time this company and the whole industry have been in the doghouse. But consultants and analysts have become more positive on the toy business and, at Mattel, on key brands Barbie and Fisher Price. As often happens with broad predictions of immense change, we think the notion that children will suddenly stop playing with Barbie dolls and switch wholesale to digital entertainment goes way too far.

    From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund 4th quarter 2015 commentary.  


  • 10 Fund Managers Are Totally Wrong on GlaxoSmithKline

    There are four big positions by guru investors in GlaxoSmithKline (GSK)  starting with Ken Fisher (Trades, Portfolio) who owns 11.5 million shares, John Rogers (Trades, Portfolio) taking 1.4 million shares, Charles Brandes (Trades, Portfolio) with 4.6 million shares and ending with HOTCHKIS & WILEY at 12.4 million shares.


      


  • The Latest Chuck Royce Investment You’ve Never Heard Of

    When I saw the Real-Time Pick from Chuck Royce (Trades, Portfolio), as tracked by GuruFocus, in Perceptron (NASDAQ:PRCP), I was sceptical. Come on, a company called Perceptron? That sounds too much like the Transformers. I never forgot Peter Lynch's advice to always go for the companies with boring names. Don’t go for the -trons, but the Pep Boys & Mannies (PBY) of the world. Even so, I dutifully decided to check it out, and what I found was remarkably interesting.


    Royce Investments is a small cap specialist boutique targeting mainly companies with market caps of up to $5 billion. They are very much a value-oriented fund, so this pick is a little bit surprising.

      


  • John Rogers Comments on China Mobile Ltd.

    Chinese telecommunications giant China Mobile Ltd. (NYSE:CHL) slipped -4.91%1 amidst broad weakness in Chinese equites and due to concerns over its own slowing customer growth. We think the company’s fundamentals remain solid, so we have been adding to our position.

    From John Rogers (Trades, Portfolio)' fourth quarter 2015 Ariel Global Fund Commentary.  


  • John Rogers Comments on Acacia Research Corp

    Other holdings fell amidst the volatility the past three months. Intellectual property and patent expert Acacia Research Corp. (NASDAQ:ACTG) stock fell -52.14% when it lost a lawsuit that many had expected it to win. In our view, Acacia lost the first trial because the jury lacked intellectual patent knowledge. We believe a favorable verdict is merely delayed and not permanently lost; the lawsuit will be refiled in Germany, where it will be decided by a panel of judges who have technical expertise. We have added to the shares because we remain confident in the original thesis.

    From John Rogers (Trades, Portfolio)' fourth quarter 2015 Ariel Global Fund Commentary.  


  • John Rogers Comments on Microsoft Corp

    Computing giant Microsoft Corp. (NASDAQ:MSFT) gained +25.95% after reporting continued growth and operating momentum in cloud-based businesses such as Azure cloud and Office 365. The company also benefitted as it guided to lower-than-expected expenses for the full year. We continue to hold the shares.

    From John Rogers (Trades, Portfolio)' fourth quarter 2015 Ariel Global Fund Commentary.  


  • John Rogers Comments on Baidu Inc.

    Some of our holdings posted solid gains for the quarter. Internet search provider Baidu, Inc. (NASDAQ:BIDU) outperformed after reporting better-than-expected quarterly earnings and announcing a $2 billion share buyback, rising +37.57% for the quarter. We continue to admire Baidu’s business strategy shift toward mobile and locally-focused services such as movie tickets, home delivery and car services. As such, we have been adding to our position.

    From John Rogers (Trades, Portfolio)' fourth quarter 2015 Ariel Global Fund Commentary.  


  • John Rogers Comments on Zebra Technologies Corp

    We also purchased shares of Zebra Technologies Corp. (NASDAQ:ZBRA), the leading global supplier of thermal printing solutions. A current holding in our small cap separate account portfolio (and also an Ariel Fund holding more than a decade ago), we added this bar-code maker to the Fund because we view Zebra as an industry leader with a strong management team, positioned to benefit from global demand for asset tracking solutions.

    From John Rogers (Trades, Portfolio)' fourth quarter 2015 Ariel Fund Commentary.  


  • John Rogers Comments on Madison Square Garden Co

    In the last quarter of the year, we acquired two new securities in Ariel Fund. We gained a new position in integrated sports, entertainment and media business company The Madison Square Garden Co (NYSE:MSG) as it completed its spin-off from MSG Networks Inc (MSGN), the company that was formerly known as Madison Square Garden Co. We already held shares of the former Madison Square Garden, whose main business focuses on media as a regional sports network. Thenew Madison Square Garden’s business focuses on sports and entertainment with various sports teams and theaters as some of the brands under its belt.

    From John Rogers (Trades, Portfolio)' fourth quarter 2015 Ariel Fund Commentary.  


  • John Rogers Comments on Sotheby’s

    Auctioneer Sotheby’s (NYSE:BID) sold off -19.17% as it became clearer the art cycle is late in its growth phase. Management is acknowledging that buyers’ discernment on quality is increasing: good lots that once sold at high prices have not reached estimated prices recently. Unfortunately, the market also viewed the company’s auction of A. Alfred Taubman, the owner of Sotheby’s before it went public in 1988, unfavorably.

    From John Rogers (Trades, Portfolio)' fourth quarter 2015 Ariel Fund Commentary.  


  • John Rogers Comments on Kennametal Inc.

    Other holdings fell amidst the volatility the past three months. Cutting tool and tooling systems maker Kennametal Inc. (NYSE:KMT) returned -22.33% as end demand has been weaker than previously expected. That cyclical issue has crimped cash flows, making it rather challenging for new CEO Don Nolan to fully execute his plan to improve efficiency via modernization.

    From John Rogers (Trades, Portfolio)' fourth quarter 2015 Ariel Fund Commentary.  


  • John Rogers Comments on Interpublic Group of Cos.

    Advertising concern Interpublic Group of Cos., Inc. (NYSE:IPG) advanced +22.32% after a strong quarterly earnings report. Based on revenues and margin that were better than the prior year, the company earned $0.27 per share—ahead of the $0.25 per share expectation. We still think advertising is expanding in ways that drive Interpublic Group’s success, while the crowed is pessimistic about ads in general and established advertising firms in specific.

    From John Rogers (Trades, Portfolio)' fourth quarter 2015 Ariel Fund Commentary.  


  • John Rogers Comments on Blount Intl Inc.

    Some of our holdings posted solid gains for the quarter. Chainsaw chain-maker Blount Intl, Inc. (NYSE:BLT) leapt +76.12% on news of its upcoming acquisition. On December 10th it entered a definitive agreement to be acquired by American Securities LLC and P2 Capital Partners, LLC for $ 10 cash per share—an 86% premium to its closing price the day before. While we think the company may be worth even more than its sale price, we view the buyout as a very efficient way to quickly capture much of its value. In fact, we wrote extensively about this stock in our third quarter letter as one of the most undervalued industrial stocks in the portfolio.

    From John Rogers (Trades, Portfolio)' fourth quarter 2015 Ariel Fund Commentary.  


  • Ariel Global Fund 4th Quarter Commentary From John Rogers

    Investments in foreign securities may underperform and may be more volatile than comparable U.S. stocks because of the risks involving foreign economies and markets, foreign political systems, foreign regulatory standards, and foreign currencies and taxes. The use of currency derivatives and exchange-traded funds (ETFs) may increase investment losses and expenses, and create more volatility. Investments in emerging and developing markets present additional risks, such as difficulties in selling on a timely basis and at an acceptable price. The intrinsic value of the stocks in which the Fund invests may never be recognized by the broader market.

      


  • Ariel Fund Quarterly Commentary From John Rogers

    Investing in small- and mid-cap stocks is riskier and more volatile than investing in large-cap stocks. The intrinsic value of the stocks in which the Fund invests may never be recognized by the broader market. Ariel Fund often invests a significant portion of its assets in companies within the financial services and consumer discretionary sectors, and its performance may suffer if these sectors underperform the overall stock market.


    Performance data quoted represents past performance. Past performance does not guarantee future results. All performance assumes the reinvestment of dividends and capital gains, and represents returns of the Investor Class shares. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the period ended December 31, 2015, the average annual total returns of Ariel Fund (Investor Class) for the 1-, 5- and 10-year periods were -4.10%, +10.43% and +6.62%, respectively. The Fund’s Investor Class shares had an annual expense ratio of 1.03% for the year ended September 30, 2014 and an annual expense ratio of 1.02% for the year ended September 30, 2015. Performance data current to the most recent month-end for Ariel Fund may be obtained by visiting our website, arielinvestments.com.

      


  • Ariel Investments Monthly Commentary for December

    For equity markets, this was the worst December since 2007. International benchmarks as well as domestic large-cap and small-cap indexes all posted losses. We have not seen such widespread December losses in seven years. Yet somehow, with the holiday fanfare and the endless political news, stock market returns did not garner big headlines.

      


  • John Rogers Increases Stake in Toy-Maker Mattel

    John Rogers (Trades, Portfolio) founded Ariel Investment LLC in 1983. He has concentrated his investment selection on small and medium-sized companies whose share prices are undervalued. During the third quarter, Rogers increased many stakes in his portfolio, and the following were some of the largest trades.


    Mattel Inc. (NASDAQ:MAT)

      


  • A John Rogers Holding That Could Take Flight in 2016

    Guru John Rogers (Trades, Portfolio) is the founder of Ariel Investment LLC. His specialty is in undervalued small and medium-sized companies. Rogers favors companies that are statistically cheap when comparing the price of their stock to potential earnings or when comparing the price of the stocks to the intrinsic values of the stocks. His portfolio is monitored on GuruFocus and I want to highlight one specific company he holds, an $800 million market cap called Bristow Group (NYSE:BRS).


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  • John Rogers Identifies the Best Value Stocks for 2016

    Is John Rogers (Trades, Portfolio) concerned about the Fed raising interest rates?


    Not at all. Rogers says that if the Fed were to raise rates four or five times consecutively, then there may be issues. But as of now, it is a not a problem.

      


  • Guru John Rogers Raises Stake in Helping Animals

    Guru John Rogers (Trades, Portfolio) is the founder of Ariel Investments, which is located in Chicago. It specializes in small and mid-cap stocks based in the U.S.


    Rogers has added 801,010 shares of Kindred Biosciences Inc. (NASDAQ:KIN) in the third quarter of 2015, a 45% increase in his holding. He now owns a total of 2,551,234 shares in the stock.

      


  • John Rogers' Holdings Trading Below Peter Lynch Earnings Line

    John Rogers (Trades, Portfolio) is the founder of Ariel Investment LLC, the investment firm he started in 1983. The portfolio is composed of 189 stocks, and the following are a few of his holdings that are trading with a very wide margin of safety, according to the Peter Lynch earnings line.


    Gilead Sciences Inc. (GILD) is trading at about $100 per share, while the Peter Lynch earnings line gives the stock a fair price of $153, giving it a margin of safety of 34%.

      


  • John Rogers Sells Position in CVS

    John Rogers (Trades, Portfolio) founded Ariel Investment LLC in 1983. His fund seeks to purchase companies whose prospects include high barriers to entry, sustainable competitive advantages, and predictable fundamentals that allow for double-digit cash earnings growth. During the third quarter, he sold eight stocks and all of them brought him a gain. The maximum gain he got was from CVS Health Corp. (NYSE:CVS) at 63%.


    Rogers has exited his position in Bob Evans Farms Inc. (BOBE). The firm held 205,686 shares. The stock has had a long-term position in the portfolio since 2010. Over the last two quarters, the investor had been reducing his stake by 0.70% and 1.58%. This quarter the he sold out his stake and gained 31%. The deal had an impact of -0.12% on the portfolio.

      


  • Ariel Investments' Monthly Commentary

    Ariel Investments, founded by guru John Rogers (Trades, Portfolio), just published its monthly commentary, and it continues where it left off other months  reiterating value is out of fashion. However it brings out the data to back this up and shows that, over the trailing one-year, three-year, five-year and 10-year periods, growth has outperformed value.


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  • John Rogers Comments on Gilead Sciences Inc.

    Biotechnology leader Gilead Sciences, Inc. (NASDAQ:GILD) dropped -15.90% on recent concerns over drug pricing. Gilead actually reported quarterly earnings that were better than expected. We continue to hold the shares, based on our belief that the market is overly focused on pricing and underestimating future sales that we think are likely to grow.

      


  • John Rogers Comments on Ruckus Wireless Inc.

    Wireless infrastructure expert Ruckus Wireless, Inc. (NYSE:RKUS) gained +14.89% after reporting better-than-expected second quarter earnings. Sales and margins beat expectations, and management guided third quarter sales above analysts’ estimates. The company saw strength across many of its business segments and a rebound in its education vertical driven by higher spending. We continue to hold the shares.

      


  • John Rogers Comments on Southern Co

    Utilities firm Southern Co. (NYSE:SO) jumped +7.56% after reporting quarterly earnings that beat expectations and management’s previous guidance. Southern also raised guidance for the third quarter aboveconsensus expectations. The company’s results were primarily driven by growth in customer load (which measures demand in the utilities field) as well as rate increases. We think the company’s fundamental improvement is likely to continue.

      


  • John Rogers' 3rd Quarter Commentary for Ariel Global Fund

    Investments in foreign securities may underperform and may be more volatile than comparable U.S. stocks because of the risks involving foreign economies and markets, foreign political systems, foreign regulatory standards, and foreign currencies and taxes. The use of currency derivatives and exchange-traded funds (ETFs) may increase investment losses and expenses, and create more volatility. Investments in emerging and developing markets present additional risks, such as difficulties in selling on a timely basis and at an acceptable price. The intrinsic value of the stocks in which the Fund invests may never be recognized by the broader market.

      


  • John Rogers Comments on Dialog Semiconductor Plc

    Other holdings underperformed in the falling market. Semiconductor maker Dialog Semiconductor plc (XTER:DLG) slid -26.10% after announcing it will buy Atmel Corp. (NASDAQ:ATML) for roughly $4.6 billion in stock and cash. The market disliked the deal, which it considered to be too large. We disagree: the logic makes sense to us, because it would diversify Dialog’s reliance on the mobile phone industry. We continue to hold the shares.

      


  • John Rogers Adds to Stakes in Mattel, Bristow, Baidu in 3rd Quarter

    One of John Rogers (Trades, Portfolio)’ responsibilities at Ariel Investment, which he founded in 1983, is the management of Ariel Fund, and he has been successful at it. In the difficult investing environment of 2014, Ariel Fund enjoyed returns of almost 11%. The Fund’s returns were even better in 2013 (nearly 45%) and 2012 (exceeding 20%).


    Consequently, his personal trading activity is worth a long look, and Rogers’ new purchases and additions to existing stakes in the third quarter deserve attention.

      


  • John Rogers Comments on Gaiam Inc.

    Lifestyle and media company Gaiam, Inc. (NASDAQ:GAIA), which we owned previously in our micro-cap strategy, recent sold off enough to make it, in our eyes, a bargain. Gaiam’s strong brand in yoga and fitness, its media library of more than 6,000 exclusive titles, and its distribution network of more than 38,000 retail locations are all valuable assets. Strong and incentivized leadership plus an attractive valuation were additional key factors in our purchase.

      


  • John Rogers Comments on Electro Scientific Industries Inc.

    Electro Scientific Industries, Inc. (NASDAQ:ESIO) is an innovator in laser-based manufacturing tools for the microtechnology industry. We established a small position after: the stock sold off to a price below tangible asset value; management improved its market strategy; and there were significant positive changes in corporate governance.

      


  • John Rogers Comments on Broadwind Energy Inc.

    Wind energy expert Broadwind Energy, Inc. (NASDAQ:BWEN) makes wind towers, performs maintenance and repair on wind turbines, and builds and remanufactures precision gears and gearing systems for the oil and gas, wind, mining, and steel industries. Recent manufacturing issues, which we believe are short -term in nature, have caused the stock to trade at roughly half of tangible asset value. With an improving balance sheet that will be in a net cash position by year-end, we initiated a small position in the company.

      


  • John Rogers Comments on Bristow Group Inc.

    Helicopter services specialist Bristow Group Inc. (NYSE:BRS), a holding in other Ariel portfolios, recently made a major push into the search and rescue (SAR) field with a multi-year United Kingdom contract. Depressed conditions in the energy sector have caused the stock to trade well below the value of its helicopter fleet, providing what we believe is an attractive entry point.

      


  • John Rogers Comments on Rentech Inc.

    Clean energy solutions firm Rentech, Inc. (NASDAQ:RTK) dropped -47.66% despite multiple pieces of good news. The company’s earnings for the quarter were solid, it is paying down its debt as expected, and most importantly Rentech Nitrogen Partners LP (NYSE:RNF) is being purchased by another company. While Rentech Nitrogen Partners is a separate entity, Rentech, Inc. owns 60% of it, and the cash purchase comes at a good price. We think the sell-off came largely because the company is being incorrectly caught up in the commodities and natural resources rout. In our view it now stands as one of the better bargains in the portfolio.

      


  • John Rogers Comments on Pendrell Corp

    Other holdings underperformed in the falling market. Intellectual property company Pendrell Corp. (NASDAQ:PCO) fell -47.45% as it lost a high-profile court case. Specifically, a federal jury ruled Google, Inc. (NASDAQ:GOOG) and Samsung Electronics Co., Ltd. had not infringed upon the firm’s intellectual property. The company has a similar but larger case pending against Apple Inc. (NASDAQ:AAPL), and investors are now pessimistic about that outcome. The company holds the rights to many intellectual properties, so we are not concerned about just one case.

      


  • John Rogers Comments on First American Financial Corp.

    Mortgage insurer First American Financial Corp. (NYSE:FAF) gained +5.68% due to a strong earnings report. Wall Street anticipated solid revenue growth but once again underappreciated the company’s powerful operating leverage. As a result, the company’s $0.83 per share in operating earnings smashed the $0.67 consensus estimate. We continue to think the company is in very good shape in a soft but improving housing market and can do even better if housing fully recovers.

      


  • John Rogers Comments on Brooks Automation Inc.

    Automation specialist Brooks Automation, Inc. (NASDAQ:BRKS) rose +3.27% in the falling market due to a strong earnings report. The company’s better-than-expected quarter came from sequential improvements in sales growth, cost management and product mix. The company continues to be debt-free and holds roughly 30% of its market capitalization in cash. The company is a straightforward example of the type of company we seek in our deep value strategy: no debt, high cash, profitable, and cheap on an asset basis.

      


  • John Rogers' Monthly Commentary on the Ariel Fund for October

    What a difference a month makes! As you know, investors and the financial press were worried by the end of September given widespread losses during the third quarter. As we noted in our quarterly commentaries: “Equities had a difficult quarter across regions, market cap ranges and styles. The U.S. large-cap S&P 500 Index fell -6.44%, the U.S. small-cap Russell 2000 Index dropped -11.92%, while the international, developed large-cap MSCI EAFE Index slid -10.23%.” Then, in what must have come as a big surprise to the hand-wringers, October happened. For the single month, the returns of the indexes cited above were: S&P 500 up +8.44%; Russell 2000 up +5.63%; MSCI EAFE up +7.82%. October’s gains do not change the tough returns from January through September, but we think you will agree the 2015 markets look quite different just one month later. Before October, the three broad indexes we watch closely were down significantly in 2015, while the twelve-month numbers were uninspiring. There is a different picture today, as you can see below:


    At this point in the year, the large-caps at home and abroad both have modest gains, and U.S. small-caps are off a minor amount. Over the last twelve months, the international and U.S. small-cap returns appear flat to us, with U.S. large-caps up a meaningful amount. That is a much more positive description than anyone could muster just one month ago.

      


  • John Rogers Comments on Baidu Inc.

    Internet search firm Baidu, Inc. (NASDAQ:BIDU) fell -30.98% after reporting weaker-than-expected second quarter earnings and guiding third quarter sales below analysts’ consensus. Baidu is improving its search engine capabilities by investing in mobile and more locally-focused services such as movie tickets, home delivery and car services. We have been adding to our position.

    From John Rogers (Trades, Portfolio)' Ariel International Fund third quarter 2015 shareholder letter.  


  • John Rogers Comments on Dialog Semiconductor plc

    Other holdings underperformed in the falling market. Semiconductor maker Dialog Semiconductor plc (XTER:DLG) slid -26.10% after announcing it will buy Atmel Corp. for roughly $4.6 billion in stock and cash. The market disliked the deal, which it considered to be too large. We disagree: the logic makes sense to us, because it would diversify Dialog’s reliance on the mobile phone industry. We continue to hold the shares.

    From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund third quarter 2015 shareholder letter.  


  • John Rogers Comments on Ryanair Holdings plc

    Discount airline Ryanair Holdings plc (NASDAQ:RYAAY) jumped +9.74% after the company raised its profit guidance by 25% for the year, well ahead of prior guidance and analysts’ estimates. The company cited strong summer traffic and fare pricing as driving improved fundamentals. We have been paring back our position on strength.

    From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund third quarter 2015 shareholder letter.  


  • John Rogers Comments on Progressive Corp

    During the quarter, we purchased Progressive Corp. (NYSE:PGR) in Ariel Appreciation Fund. Progressive is the fourth-largest auto insurer by market share in the U.S. Investors are skeptical of the company’s growth potential and margin sustainability (given intense competition, a recent move into homeowners and rising frequency losses). We, however, see this as an opportunity for long-term investors to own a rare example of a differentiated insurer, well-positioned to benefit from continued share gains, direct channel efficiencies and eventually, rising interest rates. We did not exit any positions during the quarter.

    From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund third quarter 2015 shareholder letter.  


  • John Rogers Comments on Kennametal Inc.

    Specialty cutting tool maker Kennametal Inc. (NYSE:KMT) returned -26.58% despite a reasonable earnings report. The company’s adjusted earnings were $ 0.46 per share, and unadjusted earnings were $0.26 per share; the expectation had been $0.24. The market focused on the bottom line, which was down nearly -42% from the year before. End-market demand is temporarily weak, and energy-related customers—which are a small part of the overall base—have shown especially low demand. Short-term we think the company will work its way through the challenges, and long-term we think the market is overlooking the company’s strong positioning in an important niche.

    From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund Third Quarter 2015 shareholder letter.  


  • John Rogers Comments on Bristow Group Inc.

    Other holdings underperformed in the falling market. Helicopter services specialist Bristow Group Inc. (NYSE:BRS) descended -50.45% amid a turbulent environment. As you know, oil prices have plummeted, causing Bristow’s customers to swiftly downshift—especially in the North Sea. Earnings were therefore only $0.56 per share, well below the $0.91 estimate; management also lowered guidance for the year. While these are not long-term issues in our view, the stock is likely to be volatile over the short term. We continue to believe in the company’s business model, management team and long-term position.

    From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund Third Quarter 2015 shareholder letter.  


  • John Rogers Comments on First American Financial Corp

    Some of our holdings held up relatively well in the very difficult quarter. Mortgage insurer First American Financial Corp. (NYSE:FAF) gained +5.68% due to a strong earnings report. Wall Street anticipated solid revenue growth but once again underappreciated the company’s powerful operating leverage. As a result, the company’s $0.83 per share in operating earnings smashed the $0.67 consensus estimate. We continue to think the company is in very good shape in a soft but improving housing market and can do even better if housing fully recovers.

    From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund Third Quarter 2015 shareholder letter.  


  • John Rogers Comments on U.S. Silica Holdings Inc.

    Industrial sand specialist U.S. Silica Holdings, Inc. (NYSE:SLCA) fell -51.67% in sympathy with a beleaguered competitor. Specifically, Emerge Energy Services LP (NYSE:EMES), which operates within a constrictive MLP structure (where it must distribute most of its profits), has sharply slashed its distribution guidance this year. The market simplistically applied Emerge’s woes to U.S. Silica, whose standard equity structure gives it far greater maneuverability. At the current price, Silica trades at a deep discount to our estimate of its intrinsic value.

    From John Rogers (Trades, Portfolio)' Ariel Fund Third Quarter 2015 shareholder letter.  


  • John Rogers Comments on Bristow Group Inc.

    Other holdings underperformed in the falling market. Helicopter services specialist Bristow Group Inc. (NYSE:BRS) descended -50.45% amid a turbulent environment. As you know, oil prices have plummeted, causing Bristow’s customers to swiftly downshift—especially in the North Sea. Earnings were therefore only $0.56 per share, well below the $0.91 estimate; management also lowered guidance for the year. While these are not long-term issues in our view, the stock is likely to be volatile over the short term. We continue to believe in the company’s business model, management team and long-term position.

    From John Rogers (Trades, Portfolio)' Ariel Fund Third Quarter 2015 shareholder letter.  


  • John Rogers Comments on J.M. Smucker Co.

    Jam, peanut butter and coffee king J.M. Smucker Co. (NYSE:SJM) rose +5.88% after topping quarterly expectations. Its adjusted EPS of $1.32 was significantly better than analysts’ comparable $1.23 estimate. The coffee segment grew nicely due to the introduction of Dunkin’ Donuts K-Cups. Additionally, Smucker’s acquisition of Big Heart Pet Brands is already going well. The gradual transformation of the business over the past few years has been impressive, and we expect more fundamental improvement.

    From John Rogers (Trades, Portfolio)' Ariel Fund Third Quarter 2015 shareholder letter.  


  • John Rogers Comments on Royal Caribbean Cruises Ltd.

    Some of our holdings held up relatively well in the very difficult quarter. Cruise line Royal Caribbean Cruises Ltd. (NYSE:RCL) returned +13.66% after topping earnings estimates. Analysts had expected the company to earn $0.73 per share, but it actually earned $0.84. Counterintuitively, falling oil prices did not propel the beat; instead, bookings in the Caribbean and China were stronger than expected. Moreover, the company lifted its guidance for the full year. We think most investors have been too pessimistic regarding Royal’s prospects and remain so.

    From John Rogers (Trades, Portfolio)' Ariel Fund Third Quarter 2015 shareholder letter.  


  • John Rogers' Ariel International Fund Third Quarter Comemntary

    Investments in foreign securities may underperform and may be more volatile than comparable U.S. stocks because of the risks involving foreign economies and markets, foreign political systems, foreign regulatory standards, and foreign currencies and taxes. The use of currency derivatives and exchange-traded funds (ETFs) may increase investment losses and expenses, and create more volatility. Investments in emerging and developing markets present additional risks, such as difficulties in selling on a timely basis and at an acceptable price. The intrinsic value of the stocks in which the Fund invests may never be recognized by the broader market.

      


  • John Rogers' Ariel Appreciation Fund Third Quarter Commentary

    Investing in mid-cap stocks is riskier and more volatile than investing in large-cap stocks. The intrinsic value of the stocks in which the Fund invests may never be recognized by the broader market. Ariel Appreciation Fund often invests a significant portion of its assets in companies within the financial services and consumer discretionary sectors and its performance may suffer if these sectors underperform the overall stock market.


    Performance data quoted represents past performance. Past performance does not guarantee future results. All performance assumes the reinvestment of dividends and capital gains, and represents returns of the Investor Class shares. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the period ended September 30, 2015, the average annual total returns of Ariel Appreciation Fund (Investor Class) for the 1-, 5- and 10-year periods were - 3.89%, +11.92% and +7.22%, respectively. The Fund’s Investor Class shares had an annual expense ratio of 1.12% for the year ended September 30, 2014. Performance data current to the most recent month-end for Ariel Appreciation Fund may be obtained by visiting our website, arielinvestments.com.

      


  • John Rogers' Ariel Fund Third Quarter Commentary

    Investing in small- and mid-cap stocks is riskier and more volatile than investing in large-cap stocks. The intrinsic value of the stocks in which the Fund invests may never be recognized by the broader market. Ariel Fund often invests a significant portion of its assets in companies within the financial services and consumer discretionary sectors, and its performance may suffer if these sectors underperform the overall stock market.

      


  • Johnson & Johnson´s Dividend Discount Model Suggests Value of $139.6 Per Share

    In this article, let´s take a look at Johnson & Johnson (NYSE:JNJ), which has reported better-than-expected earnings but a decline in revenues. The EPS for the third quarter was $1.49, beating estimates by $0.04. However, revenue of $17.1 billion misses by $350 million.


    Relative valuation and dividend yield

      


  • John Rogers' Ariel Funds Monthly Commentary - September

    Given the current commotion, we think it makes sense for investors and market pundits to pause and put the recent equity returns in perspective. That is, unless you have been actively avoiding newspapers and television, you already know that stocks’ performance in the recent quarter was rough, with almost nowhere to run to and nowhere to hide. As investors who have adopted a tortoise as our corporate logo, we certainly have not been looking to run and have no interest in hiding; instead, we march slowly on with our long-term goal in mind. Given that, here is what we think of the markets at this point.

      


  • John Rogers Adds to Stake in Anixter International

    John Rogers (Trades, Portfolio), founder of Ariel Investment LLC, raised his stake in Anixter International Inc. (NYSE:AXE), a Glenview, Ill.-based distributor of communications and security products, electrical and electronic wire and cable and fasteners, by 10.53% on Sept. 30.


    Rogers bought 297,881 shares for an average price of $57.78 per share. The purchase increased his position to 3,126,186 shares and had a 0.19% impact on his portfolio. Late Friday, the stock sold for $63.63 per share.

      


  • John Rogers - Industrials, Media Are 'Cheap'

    Ariel Investments' CEO John Rogers (Trades, Portfolio) thinks the market's downturn is only temporary and the bull market will resume. He also discusses areas he thinks are undeservedly discounted, naming specific stocks: Kennametal (NYSE:KMT), Tegna (NYSE:TGNA), KKR & Co. (NYSE:KKR), Lazard (NYSE:LAZ), CBS (NYSE:CBS) and Meredith (NYSE:MDP).
      


  • John Rogers' Ariel Fund August Commentary

    Recent volatility has sparked a feverish conversation about the state of the stock market. Given the wild swings of late, suddenly words such as “panic,” “crash” and “bear market” have slipped back into the lexicon. Even though it has been more than six years since the financial crisis crested, nerves are still jittery.

      


  • John Rogers Acquires Stake in Tegna in Second Quarter

    John Rogers (Trades, Portfolio), founder of Ariel Investment LLC, where he is a portfolio manager, also writes a column for Forbes called “Patient Investor.” That’s a good description of Rogers’ investment philosophy; he believes good returns can be accomplished through patience, independent thinking and an eye to the long term.


    Rogers also manages portfolios for Ariel Fund, which enjoyed returns of 44.68% last year and 20.32% the year before that.

      


  • John Rogers Comments on Chesapeake Energy Corp.

    Also, natural gas explorer Chesapeake Energy Corp. (NYSE:CHK) declined -20.65% as clouds continued to hang over the stock. The price of natural gas has declined nearly 40% over the past 12 months, and Chesapeake has become a favorite for short sellers as short interest has nearly quadrupled in just more than six months. Declines in prices for both natural gas and crude oil have brought increased scrutiny to Chesapeake debt level. We continue to own the stock.

      


  • John Rogers Comments on Lockheed Martin Corp.

    Defense and aeronautics company Lockheed Martin Corp. (NYSE:LMT) fell -7.68%, despite an earnings beat. Specifically, the company announced earnings of $2.74 per share; the Wall Street estimate had been $ 2.50. Revenues were actually a bit short of expectations, so the market took the stock down a bit, given its relatively full valuation. We continue to see it as a very high-quality enterprise with a strong competitive advantage.

      


  • John Rogers Comments on Goldman Sachs Inc.

    In addition, investment bank Goldman Sachs Group, Inc. (NYSE:GS) rose +11.42%, as it continued to be in a good spot. It did not have any particularly surprising news, but as the market advanced, big financial firms strongly outperformed. The market continues to see Goldman as one of the top leaders in the broad industry, and we agree with that sentiment.

    From John Rogers (Trades, Portfolio)' Ariel Focus Fund second quarter 2015 commentary.  


  • John Rogers Comments on Stanley Black & Decker Inc.

    Toolmaker Stanley Black & Decker, Inc. (NYSE:SWK) jumped +10.92% due to strong earnings. The market expected the company to earn $0.95 per share, while it managed to make $1.07. Revenues, gross margins and operating margins all advanced. We continue to see the company as having and nicely defending a good competitive position.

      


  • John Rogers' Ariel Focus Fund Second Quarter Commentary

    Investing in equity stocks is risky and subject to the volatility of the markets. Investing in small and mid-size companies is riskier and more volatile than investing in large companies. The intrinsic value of the stocks in which the portfolio invests may never be recognized by the broader market. Ariel Focus Fund is a nondiversified fund and therefore may be subject to greater volatility than a more diversified investment.


    Performance data quoted represents past performance. Past performance does not guarantee future results. All performance assumes the reinvestment of dividends and capital gains, and represents returns of the Investor Class shares. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the period ended June 30, 2015, the average annual total returns of Ariel Focus Fund (Investor Class) for the 1-year, 5-year and 10-year periods were -0.48%, +14.15% and +5.68%, respectively. As of September 30, 2014, Ariel Focus Fund’s Investor Class had an annual net expense ratio of 1.08% and a gross expense ratio of 1.40%. Effective February 1, 2014, Ariel Investments, LLC, the Adviser, has contractually agreed to waive fees or reimburse expenses (the "Expense Cap") in order to limit Ariel Focus Fund's total annual operating expenses to 1.00% of net assets for the Investor Class through the end of the fiscal year ending September 30, 2016. The Expense Cap prior to February 1, 2014 was 1.25% for the Investor Class. Performance data current to the most recent month-end for Ariel Focus Fund may be obtained by visiting our website, arielinvestments.com.

      


  • John Rogers Increases His Stake in Contango Oil & Gas Company

    John Rogers (Trades, Portfolio) of Ariel Investment LLC has increased his portfolio stake in Contango Oil & Gas Company (MCF). Rogers is the founder of Ariel Investment LLC which manages approximately $8.9 billion in equity assets. On July 31 he added 467,473 shares of Contango to his portfolio, increasing his allocation in the oil and gas sector to 4.96% and his portfolio position in Contango to 0.50%. After the share increase on July 31, Ariel Investment LLC holds 25% of the outstanding equity shares of Contango.


    Contango is 1 of 10 oil and gas holdings in John Rogers' (Trades, Portfolio) portfolio. With a market capitalization of $165 million it ranks ninth in market capitalization among its oil and gas peers.Contango Oil & Gas is an exploration and production company focused on resources in the Gulf of Mexico. The company recently released its earnings for the second quarter of 2015, reporting $35.3 million in revenue. In the second quarter the company reported a net loss of $19.5 million resulting in a loss per share of $1.03.

      


  • John Rogers' July Commentary From Ariel Investments

    Recently, we were pleased to read a Morningstar FundInvestor article entitled, “Risk Off,” written by Director of Fund Research and Editor Russel Kinnel. The piece discusses funds with betas and standard deviations that have fallen the last few years. Kinnel dedicates a paragraph each to six mutual funds with volatility that improved dramatically over the past three years, including our flagship Ariel Fund. He describes Ariel Fund as long having “the profile of being a bit to the cautious side, with fairly stable but low P/E stocks,” and we agree. He then notes that volatility spiked in the Great Recession of 2008-2009 and summarizes the aftermath in positive terms:


      


  • Ariel Capital Advisors Cuts Stake in Coca-Cola and 3M

    At the end of the second quarter of 2015, the hedge fund Ariel Capital Advisors reported a total value of its portfolio of $174,199,000 with an increase of 3.44% over the previous quarter.


    During the Q2 2015, the hedge-fund bought 282 new stocks and increased 51 stakes as reported in my previous article. The hedge fund did not sell out any of its stakes, but reduced 64 positions and the following are the most heavily weighted sales.

      


  • John Rogers' Ariel Fund Second Quarter 2015 Commentary

    Investing in small- and mid- cap stocks is riskier and more volatile than investing in large-cap stocks. The intrinsic value of the stocks in which the Fund invests may never be recognized by the broader market. Ariel Fund often invests a significant portion of its assets in companies within the financial services and consumer discretionary sectors, and its performance may suffer if these sectors underperform the overall stock market.


    Performance data quoted represents past performance. Past performance does not guarantee future results. All performance assumes the reinvestment of dividends and capital gains, and represents returns of the Investor Class shares. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the period ended June 30, 2015, the average annual total returns of Ariel Fund (Investor Class) for the 1-, 5- and 10 -year periods were +9.79%, +19.15% and +7.46%, respectively. Ariel Fund’s Investor Class shares had an annual expense ratio of 1.03% for the year ended September 30, 2014. Performance data current to the most recent month-end for Ariel Fund may be obtained by visiting our website, arielinvestments.com.

      


  • A Gas Company Expanding its Portfolio

    In a previous article, we determined that Praxair Inc. (NYSE:PX)´s intrinsic value was above the trading price by 11%, so according to our model and assumptions, the stock seems to be undervalued and subject to a potential “buy” recommendation.


    Manning & Napier Advisors, Inc has recently initiated a new position on Praxair with 30,886 shares, so in this article, let´s take a look at the company´s fundamentals.

      


  • The Market for Tobacco Alternatives Continues to Evolve

    In this article let's take a look at Philip Morris International Inc. (NYSE:PM), the global tobacco giant that sells cigarettes in over 200 countries, which manufactures and markets the number one cigarette brand: Marlboro.


    Next generation of ecigarettes

      


  • John Rogers' Undervalued Stocks Trading With Low P/E Ratio

    John Rogers (Trades, Portfolio) is the founder of Ariel Investment, LLC, which he started in 1983. He began as a small and mid-cap value manager, and evolved strategically to offer three approaches - all of which seek out attractive intrinsic value through relatively concentrated portfolios. The firm uses the market's short-term focus to uncover mispriced companies whose true value will be realized over time.


    His portfolio is composed of 187 stocks, four of which were bought during the last quarter. The total value of the portfolio is $8,922 million with 9% Q/Q turnover.

      


  • John Rogers Increases Holding in Tech Company Qumu

    John Rogers (Trades, Portfolio) of Ariel Investments upped his stake in Qumu Corp (NASDAQ:QUMU) by 56% on June 30, adding 630,204 shares at a price of $8.24 per share. His total holding in the company now amounts to 1,749,277 shares.


    c31ada75f93bc19b0ac999d7ed49c537.png

      


  • John Rogers' Ariel Funds June Commentary

    Last month, we studied year-to-date returns, and this month, we will comment on year-to-date flows. We see returns and flows as two different tools for measuring investment sentiment and think using them in combination is superior to depending solely on one. Recall that in examining U.S. stock returns last month, we noted returns were positive across the board, with growth outperforming value. To us that suggests optimism and an embracing of risk for U.S. equity investors.


    We now turn to asset flows in mutual funds. Last year when we examined 56 categories in the taxable bond, U.S. equity and international equity groups, we saw a fairly clear picture. Investors were hunting for yield, especially in bonds, and seeking safety in equity categories. They were avoiding growth fare and aggressive international investments. All in, we saw broad caution in the first half of 2014. The picture is different and a bit more cloudy this year.

      


  • John Rogers' Investment in Anixter International Inc

    Anixter International Inc. (NYSE:AXE) is a distributor of enterprise cabling and security solutions, electrical and electronic wire and cable products, and OEM supplies. The company is chaired by Sam Zell, the billionaire best known for his real estate business Equity Residential.


    After Zell, the next largest shareholder is Ariel Investments, LLC - John Rogers (Trades, Portfolio) - who added heavily to his position last quarter, bringing his total shares to 2.23 million.

      


  • Top Micro-Cap Picks From the Gurus

    Much like small-cap stocks, micro caps (generally defined as capitalizations between $50-300 million) offer opportunities for very large growth, but also present significant risk and volatility.


    Over the last year, the Russell Microcap Index returned 11.19%, slightly underperforming the Russell 3000 return of 11.86%. When looking over a three-year period, the Microcap index returned 20.89% compared to Russell 3000’s 19.92%.

      


  • John Rogers' Ariel Funds Monthly Commentary - May 2015

    Month Ended May 31, 2015

      


  • Five-year lows: Acacia Research Corporation, Park Electrochemical Corp, Bill Barrett Corporation, Black Box Corp

    According to GuruFocus list of five-year lows, these Guru stocks have reached their five-year lows: Acacia Research Corporation, Park Electrochemical Corp, Bill Barrett Corporation, Black Box Corp


    Acacia Research Corporation reached $9.62

      


  • Ariel Investments' Top Undervalued Stocks

    Ariel Investment, founded by John Rogers (Trades, Portfolio) in 1983, is a firm that looks closely at a company's intrinsic value and its margin of safety (of at least 40%). The prices are given ample time to reflect intrinsic vlaue.


    The firm currently owns 187 positions in its portfolio, valued around $8.9 billion and has a 9% quarter over quarter turnover rate.

      


  • John Rogers' Recent Buy: Versar Inc

    John Rogers (Trades, Portfolio) is the Founder of Ariel Investment, LLC, which he started in 1983. As of Q1 2015 the portfolio has a value of $8,922 million and is composed of 187 stocks.


    On April he increased by 47.61% his stake in Versar Inc (VSR) a project and program management firm that provides the government, municipalities, and the private sector with solutions for infrastructure, facilities management, construction, environmental quality, professional services, defense and homeland security needs.

      


  • John Rogers' Investment Propels Two Stakes into His Personal Top 10

    John Rogers (Trades, Portfolio), founder of Ariel Investment, LLC, is known to like to invest in small and medium-sized companies whose share prices are undervalued, believing that patience, independent thinking and a long-term outlook are critical to achieving good returns. Ariel had a 44.68% return in 2013 and a 20.32% return in 2012.


    In the first quarter, Rogers made additions to two stakes – Kennametal Inc (NYSE:KMT) and Blount International Inc (NYSE:BLT) – that were sufficient to land them in his Top 10 by volume.

      


  • 5-year lows: American Public Education Inc, Quiksilver Inc, RealNetworks Inc, Universal Technical Institute Inc.

    According to GuruFocus list of 5-year lows, these Guru stocks have reached their 5-year lows: American Public Education Inc, Quiksilver Inc, RealNetworks Inc, Universal Technical Institute Inc.


    American Public Education Inc reached $23.26

      


  • Risk & Reward with Gilead Sciences Inc. (GILD)

    I realize that biotech stocks are not really value investments, per se. They constantly need R&D to keep up with competitors and the competitive advantages from drug patents have a limited, albeit long, time frame. However, with Gilead (NASDAQ:GILD) there could be some reward owning at this level.


    The Company’s areas of focus include human immunodeficiency virus (HIV), liver diseases such as chronic hepatitis B virus (HBV) infection and chronic hepatitis C virus (HCV) infection, oncology or inflammation and serious cardiovascular and respiratory conditions.

      


  • John Rogers' Ariel Fund Monthly Commentary for April

    In the March monthly commentary, we discussed how our investment activity drove Ariel Fund’s strong bull market performance, examining focus, concentration and the trading of portfolio holdings. In our traditional value quarterly letter from the same period, we examined K. J. Martijn Cremers’s Patient Capital Outperformance: The Investment Skill of High Active Share Managers Who Trade Infrequently, to explore the benefits of being highly active managers with long holding periods. This month, we will bring the two topics together and dive deeper to study portfolio turnover.

      


  • 5-year lows: Bridgepoint Education, Pendrell Corp, Gulf Island Fabrication, and Commercial Vehicle Group Inc.

    According to GuruFocus list of 5-year lows, these Guru stocks have reached their 5-year lows: Bridgepoint Education Inc, Pendrell Corp, Gulf Island Fabrication Inc, and Commercial Vehicle Group Inc.


    Bridgepoint Education Inc (NYSE:BPI) Reached $8.78

      


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