John Rogers

Last Update: 06-09-2017

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

  • 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.

      


  • John Rogers' Ariel Global Fund 2nd Quarter Commentary

    For the second quarter in a row, investors will likely remember the harrowing ride better than the end result. That is, domestic stocks posted solid gains and foreign shares had relatively mild losses. In the meantime, however, there was Brexit. On June 23, 2016 the British people shocked the world by voting for the United Kingdom to exit the European Union—an enormously complex and economically risky decision. As you know, the market hates uncertainty. And so in response, foreign stocks plummeted - 10%, small caps dove -7%, and large caps sank -5%. But once investors fully digested the news, stocks jumped back up—nearly erasing their losses in the U.S. Overseas the short-term damage from Brexit still showed; the financial-heavy value indexes significantly lagged the core and growth indexes. In the end, U.S. value fare outpaced growth stocks for the second quarter in a row—definitively ending a very long run of outperformance from the growth side.

      


  • 10 Stocks John Rogers Keeps Buying

    John Rogers (Trades, Portfolio) is the founder of Ariel Investment LLC, which he started in 1983. He is also a long-term Forbes columnist, writing a column called "Patient Investor." In both the first and second quarters, the guru bought shares in the following stocks.


    Cullen/Frost Bankers Inc. (CFR)

      


  • Ariel Funds: Interest Rates Are Gravity That Pulls Stocks Down



  • Charles Bobrinkskoy of Ariel Funds: Stock Market Is Not That Expensive

    Ariel Investments Vice Chairman and Head of Investment Group Charles Bobrinkskoy advises investors not to try to time the Fed's interest rates decision and buy underpriced sectors. Light cyclicals and financials are very cheap right now, he said. He mentions powertrain company BorgWarner (NYSE:BWA) as an example of an attractve stock.


      


  • John Rogers' Ariel Investments August Commentary

    We think investing in the markets without knowing about recent shifts is a bit like trying to hit a piñata while blindfolded (of course). So in our commentaries we strive to give overviews to our investors. In May we examined year-to-date returns. As you may remember, value fare was outperforming growth, especially in smaller-cap stocks; a reversal of the growth-dominated rally that started in early 2009. This month we examine mutual fund flows, because they are another tool for measuring investment sentiment.

      


  • John Rogers Comments on Abbott Laboratories

    In addition, cardiovascular muscle devices maker St. Jude Medical, Inc. (NYSE:STJ) popped +42.39% after a takeout offer. Specifically, Abbott Laboratories (NYSE:ABT) offered $ 46.75 in cash and 0.9 shares of Abbott stock for each share of St. Jude. The stock jumped more than 25% on the news of the offering.

    From John Rogers (Trades, Portfolio)' second quarter 2016 market commentary.   


  • John Rogers Comments on KKR & Co. L.P.

    Also, private equity group KKR & Co. L.P. (NYSE:KKR) declined -15.00% due to a soft earnings report combined with Brexit fears. The company reported a loss of -$0.65 per share, well below consensus of -$0.34 per share. The key reason for the miss was an unfavorable mark-to-market on the balance sheet, largely due to its First Data Corp. (FDC) holding. Then, as Brexit occurred toward the end of the quarter, KKR was one of the hardest-hit stocks in the financial sector. We think the short-term earnings report and the overreaction to a political shift do little to harm the company’s long-term value.

    From John Rogers (Trades, Portfolio)' second quarter 2016 market commentary.   


  • John Rogers Comments on BorgWarner Inc.

    Other holdings experienced a short-term struggle. Powertrain expert BorgWarner Inc. (NYSE:BWA) returned -22.83% since we purchased it in February after lowering multi-year expectations. Although the company’s growth over the next couple of years may not be as strong as previously expected, it continues to grow. Plus its long-term prospects are excellent. The market continues to worry over the emergence of all-electric vehicles. Yet we believe BorgWarner still has a huge position in traditional as well as hybrid vehicles, which together, we think, will likely constitute a vast majority of the market for years to come. Moreover, it is not simply an American company but a global player. We continue to think the company’s present is solid and its future very bright.

    From John Rogers (Trades, Portfolio)' second quarter 2016 market commentary.   


  • John Rogers Comments on Barrick Gold Corp

    Some of our holdings performed well during the quarter. Gold miner Barrick Gold Corp. (NYSE:ABX) jumped +57.40% as the price of gold continued to rise. Specifically, gold rose from approximately $1,220 to $1,320 over the course of the quarter. The jump proved big for gold miners as their product jumped in price but their costs remained stable. Barrick remains the biggest and, we think, the best gold miner.

    From John Rogers (Trades, Portfolio)' second quarter 2016 market commentary.   


  • John Rogers' Ariel Focus Fund 2nd Quarter Commentary

    For the second quarter in a row, investors will likely remember the harrowing ride better than the end result. That is, domestic stocks posted solid gains and foreign shares had relatively mild losses. In the meantime, however, there was Brexit. On June 23, 2016 the British people shocked the world by voting for the United Kingdom to exit the European Union—an enormously complex and economically risky decision. As you know, the market hates uncertainty. And so in response, foreign stocks plummeted - 10%, small caps dove -7%, and large caps sank -5%. But once investors fully digested the news, stocks jumped back up—nearly erasing their losses in the U.S. Overseas the short-term damage from Brexit still showed; the financial-heavy value indexes significantly lagged the core and growth indexes. In the end, U.S. value fare outpaced growth stocks for the second quarter in a row—definitively ending a very long run of outperformance from the growth side.

      


  • John Rogers Buys MSG Networks

    John Rogers (Trades, Portfolio) of Ariel Investment LLC purchased 1,884,145 shares in MSG Networks Inc. (NYSE:MSGN) for an average price of $16.05 per share on July 31. He now holds 6,268,842 shares.


    Rogers has been involved with the company since the first quarter of 2011. The purchase had an impact of 0.36% on his portfolio.

      


  • John Rogers Discusses Buffett-Inspired Moats in July Commentary

    As you know, Ariel traces its philosophical lineage directly to the world’s greatest investor, Warren Buffett (Trades, Portfolio). Buffett’s beliefs and teachings have influenced many aspects of our core traditional value strategy, from the importance of staying within a well-defined circle of competence to the topic we will discuss this month: the economic moat1.  


  • John Rogers Comments on Viacom

    During the second quarter, we added media company Viacom, Inc. (NASDAQ:VIAB) to Ariel Fund. While acknowledging investor concerns toward the cable business model stemming from changing media consumption patterns and technology platforms, we view Viacom as an underappreciated security in the market. Also a current holding in Ariel Appreciation Fund, we believe Viacom’s content will provide attractive economics regardless of the distribution medium.

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


  • John Rogers Comments on Bristow Group Inc.

    Also, helicopter services company Bristow Group Inc. (NYSE:BRS) returned - 39.41% due to uncertainty in its business. As you know, oil prices increased more than +25% over the course of the quarter—which marginally improves its business in the intermediate term. Yet the market reacted poorly to its quarterly earnings report: it earned $0.13 per share versus the consensus of $0.55. Plus, management declined to give guidance for its oil and gas segment. While earnings are temporarily constrained we think the long-term opportunity remains sound.

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


  • John Rogers Comments on Lazard Ltd

    Other holdings experienced a short-term struggle. Asset manager and transaction advisor Lazard Ltd (NYSE:LAZ) fell -22.44% after a weak earnings report. Specifically, the company reported adjusted quarterly earnings of $0.50 per share, short of the consensus $0.65 expectation. Revenues were a bit light, while a higher compensation ratio drove the bulk of the miss. In addition, there were net outflows of $361 million in the quarter. We continue to believe the company has a considerable advantage in the crucial emerging markets investment niche.

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


  • John Rogers Comments on Dun & Bradstreet Corp

    In addition, credit specialist Dun & Bradstreet Corp. (NYSE:DNB) rose +18.67% after a strong earnings report. After some disappointing numbers in 2015, Wall Street lost faith that the company would get back to its traditional growth rates. This quarter revenues were strong in the U.S., margins were materially better than expected, and so the adjusted earnings per share hit $1.18 (well above the $0.95 consensus). We think Dun & Bradstreet has a solid plan to keep growing, so we plan to remain patient—as we have been all along.

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


  • John Rogers Comments on Silica Holdings

    Some of our holdings performed well during the quarter. High-quality industrial sand producer U.S. Silica Holdings, Inc. (NYSE:SLCA) surged +52.01% as oil prices recovered.


    Specifically, the price of crude oil moved fromapproximately $35 to $52 before settling back. This move gave investors confidence that oil and gas producers, U.S. Silica’s core customer base, will remain big customers of the firm. We continue to see Silica as having a significant logistical advantage over peers in its crucial niche.

      


  • John Rogers' Ariel Fund 2nd Quarter Commentary

    Quarter Ended June 30, 2016

      


  • Ariel Investments' Charlie Bobrinskoy Discusses European Stress Test Results

    European banks released their stress test results Friday, and Ariel Investments, led by John Rogers (Trades, Portfolio), worries about their safety.

    "There's too much risk to be investing in these names," he said. "They just don't represent a good risk-reward trade-off. Clearly the European bank authorities don't want to send a signal that there are real problems in the system. There are real problems in the system, particularly in Italy."   


  • John Rogers' Ariel Fund June Commentary

    Obviously, the Brexit vote was the big event this month, and what a short, strange trip it has been. On June 23rd, the United Kingdom’s citizens voted whether to Remain a part of the European Union (Bremain) or to Leave it (Brexit). This referendum was born in 2013, when Prime Minister David Cameron promised there would be a stay/go vote if he were re-elected. At the time, low rumblings came from some who were dissatisfied with the E.U.; Cameron firmly believed in the Union. He considered the referendum low risk—he was wrong. Leading up to the vote, the British political betting markets showed an 88% chance Bremain would win; public opinion polls leaned that way but less firmly. In the end, more than 30 million voters (greater than 70% of eligible voters) voted to leave the E.U. by a 52% to 48% margin. Experts were stunned, the media scrambled, and the British pound fell -10.67% (versus the dollar) in just two days. Cameron announced he would resign.

      


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