John Rogers

Last Update: 11-14-2017

Number of Stocks: 176
Number of New Stocks: 5

Total Value: $8,614 Mil
Q/Q Turnover: 5%

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

John Rogers Watch

  • John Rogers Comments on Keysight Technologies

    In the last quarter of the year, we added one new position in Ariel Appreciation Fund We purchased Keysight Technologies, Inc. (NYSE:KEYS), a leading test and measurement business for electronics. The company’s long history dates back to its formation as the measurement business of Hewlett-Packard (NYSE:HPE), which has resulted in deeply rooted relationships, leading market share, and a seat at the table during the development of new technologies. Recently spun-off from Agilent Technologies, Inc. (NYSE:A), investors are discarding the shares due to a perceived lack of near-term growth prospects. We see this as an attractive long-term opportunity to own a niche market leader with excellent free cash flow generation. We think it is well-positioned to benefit from several longer-term tailwinds, including 5G wireless testing and growing demand for modular solutions, software-based testing and recurring services.

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


  • John Rogers Comments on Thermo Fisher Scientific Inc.

    Also, scientific research supplier Thermo Fisher Scientific Inc. (NYSE:TMO) dropped –11.20% despite an earnings beat. The company reported earnings per share of $2.03 in late October, well ahead of the $1.97 consensus estimate; it also closed its acquisition of electron microscope maker FEI Company. Health care stocks were generally weak in November and December as investors rotated away from defensive stocks toward more aggressive ones. In our view, the company remains on the right track.

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


  • John Rogers Comments on Zimmer Biomet Holdings

    Other holdings underperformed. Orthopedic specialist Zimmer Biomet Holdings, Inc. (NYSE:ZBH) fell –20.44% after cutting guidance and admitting internal supply issues. Earnings were in-line, but revenue was negatively impacted by inventory for some high-end products. The company subsequently cut full-year earnings guidance from $8.00 per share to $ 7.95 per share. We view the supply problem as a short-term issue and believe the long-term future is bright for this best-in-class brand.

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


  • John Rogers Comments on Northern Trust Corp

    In addition, wealth management firm Northern Trust Corp. (NASDAQ:NTRS) surged +31.58% on broad news that boosted many financial companies. Donald Trump’s unexpected win is good news for banks, asset managers, and investment banks. And, as anticipated, in mid-December the Federal Reserve raised its federal funds target rate 25 basis points to the 0.50% to 0.75% range, which helps boost bank profits on deposits. The Northern Trust is performing well, but its recent rise was due to external events.

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


  • John Rogers Comments on Bristow Group Inc.

    Some holdings in the portfolio advanced considerably. Helicopter transportation company Bristow Group Inc. (NYSE:BRS) ascended +46.83% after recently secured financing put Wall Street at ease. The Street had worried the company would become financially distressed like a top competitor given the oil industry’s woes. Instead, Bristow arranged $300 million in debt, secured by a portion of its own helicopter fleet. In addition, oil rose during the year and the quarter, giving the stock a mild boost as well. We think its shares are undervalued given the company’s significant assets and depressed earnings.

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


  • John Rogers' Ariel Fund 4th Quarter Commentary

    Entering the fourth quarter of 2016, it appeared domestic stocks would have a solid year and international equities a lackluster, yet positive one. After a divergent quarter, we had a great year in the U.S. and a flat year abroad. For 2016, the large-cap S&P 500 Index gained +11.96%, the small-cap Russell 2000 Index leapt +21.31%, while the developed-market MSCI EAFE Index eked out a +1.00% gain. As many know, the big surge after the surprising U.S. Presidential Election became known as the “Trump Bump.” The disparity between large-caps’ single digit fourth quarter gains and small-caps’ big run stems from the President-Elect’s plan to slash corporate taxes. Perhaps more importantly, however, the gains suggest optimism the economic expansion will continue. Globally, pessimism has held sway for some time. Since a July 3, 2014 peak, the MSCI EAFE Index is down -9.23% cumulatively through December 31, 2016. This index is clearly in a bear market: down for two and a half years and at one point off -22.15% cumulatively. This quarter, Ariel Fund gained +7.75%, behind the Russell 2500 Value Index’s +9.34% gain but ahead of the +6.12% rise of the Russell 2500 Index.

      


  • John Rogers' Ariel Appreciation Fund 4th Quarter Commentary

    Quarter Ended December 31, 2016

      


  • John Rogers Muses on Risk in Ariel Funds December Commentary

    Happy New Year to you and Happy Birthday to our global portfolios! Two years ago we celebrated their three-year records and first set of Morningstar Ratings, so it makes sense to do so again as they turn five. We think we have reason to be proud of Ariel International Fund and Ariel Global Fund’s performance and hope you agree.

      


  • Gilead Sciences Must Answer to Investors After a Disappointing 2016

    Gilead Sciences Inc. (NASDAQ:GILD) delivered a poor performance last year. The stock lost over 24% in 2016, caused by a drop in sales of products that treat hepatitis C. According to Ben Levinsohn in a Barron's article, the decline was also attributed to the company’s lack of a plan for the future.


      


  • Gurus Expand Positions in Entertainment and Travel Companies

    Among the industries, the entertainment and travel industries have high institutional and insider ownership. Such companies include Cinemark Holdings Inc. (NYSE:CNK), Century Casinos Inc. (NASDAQ:CNTY) and Royal Caribbean Cruises Ltd. (NYSE:RCL). As gurus expand their positions in these companies, such companies have good value potential in early 2017.


    High institutional and insider ownership suggest strong value potential

      


  • John Rogers Boosts Berkshire, Rockwell Collins, Tiffany

    John Rogers (Trades, Portfolio) founded Ariel Investment LLC in 1983, and the firm now has a total value of $8.267 billion. During the third quarter the guru’s largest buys were the following:


    The investor raised his position in Berkshire Hathaway Inc. Class B (BRK.B) by 151.06% with an impact of 0.44% on the portfolio.

      


  • Ariel Investments Vice Chair Discusses Finding Attractive Stocks

    Ariel Investments Vice Chairman Bob Bobrinskoy spoke to CNBC Friday about how to find attractive stocks in the higher market. Bobrinskoy said investors should compare stocks to their intrinsic value rather than the market, which has gone up since October.


    Low-priced stocks were merely slightly harder to find, he said. His picks were: KKR & Co. (NYSE:KKR), Borgwarner (NYSE:BWA) and Zimmer Holdings (NYSE:ZBH). The investor also discussed the Dow, small caps and EU banks.

      


  • John Rogers' Ariel Fund November Commentary

    As you know, we have been commemorating the 30th anniversary of our flagship Ariel Fund throughout 2016. And while we have been able to describe how many U.S. equity funds have 30 years of history (207), and how many in that group have had the same manager (just 19), we had to wait for a very important number: the 30-year return figure. At long last, a week into November 2016 we received the 30-year since inception number, which we discuss below.

      


  • Chuck Royce’s Top 3 New Holdings

    Chuck Royce (Trades, Portfolio) of Royce & Associates bought 51 new holdings in the third quarter. His top three new holdings are American Woodmark Corp. (NASDAQ:AMWD), Houlihan Lokey Inc. (NYSE:HLI) and Skechers (NYSE:SKX).


    Royce is the chairman and portfolio manager at Royce & Associates. His firm utilizes an active, bottom-up, risk-conscious and fundamental investment approach. It invests primarily in smaller companies and seeks great stocks that are trading for less than they estimate the company is worth.

      


  • Snap-on: Ratcheting Up Margins and Other Vital Metrics

    Shares of Snap-on Inc. (NYSE:SNA) have jumped 13% since third-quarter earnings were announced a month ago.


    Snap-on is behind all those white vans that sell wrenches and sockets at auto repair shops and dealerships. At least, that is the traditional business; it now operates three other segments that make money as well.

      


  • John Rogers' Commentary for Month of October

    Month Ended October 31, 2016

      


  • Robert Olstein Continues to Buy eBay, Walt Disney

    Robert Olstein (Trades, Portfolio) is the chairman and chief investment officer of the Olstein Financial Alert Fund. In both the second and third quarters the guru bought shares in the following stocks:


    Charles River Laboratories International Inc. (CRL)

      


  • Ariel Manager Discusses Best and Worst Places to Have Money Right Now



  • John Rogers Comments on Contango Oil & Gas Co.

    In addition, natural resources firm Contango Oil & Gas Co. (MCF) dropped -16.50% due to a significant earnings miss. Analysts were expecting the company to lose $0.33 per share, but Contango lost $0.67. Revenues were down significantly versus the previous year, largely due to the slide in the price of oil. Despite the miss, the company has managed to reduce its debt balance to $111 million—a 4% decrease—this year. We think the company is better positioned than most of its peers, and as such believe the stock is positioned to outperform going forward.

      


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

    Other holdings fell back a bit. Jam, peanut butter and coffee company J.M. Smucker Co. (NYSE:SJM) retreated -10.64% due to a recent acquisition that has not met expectations. In 2015, the company moved into pet food as a part of its “center of the store” strategy with the purchase of Big Heart Pet Brands. That unit did not deliver the revenues or profits analysts expected. We believe the shortfall is mainly due to pet food cost deflation and a price war from its chief competitors. We think the management team will get things moving in the right direction and are content to own the stock at a cheaper multiple in the meantime.

      


  • John Rogers Comments on Zebra Technologies Corp

    Also, thermal printer maker Zebra Technologies Corp. (NASDAQ:ZBRA) rose +38.94% due to a strong quarter. After adjusting for a tax benefit, its earnings per share were $1.34, crushing the $1.05 expectation. The company held its flat full year guidance. Wall Street had not previously believed in the company’s turnaround, but is clearly waking up. We think these numbers are just the beginning of the company’s good news.

      


  • John Rogers Comments on Kennametal Inc.

    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.

      


  • John Rogers Comments on BOK Financial Corp.

    In the third quarter, we added new firm-wide holding BOK Financial Corp. (NASDAQ:BOKF) to Ariel Appreciation Fund. BOK Financial is a leading bank holding company that provides services to businesses and individuals located in the middle-south. Skilled underwriting capabilities and an experienced management differentiate BOK Financial from its competitors. Recent macroeconomic headwinds in the energy industry caused by depressed oil and natural gas prices have created significant pressure on the stock price. As a result, we see this as an opportunity to own a conservatively managed bank with a geographic niche.

      


  • John Rogers Comments on Viacom Inc.

    In addition, media firm Viacom, Inc. (NASDAQ:VIAB) declined -7.61% amidst its management shuffle. As you may know, the company ousted CEO Philippe Dauman in August and temporarily replaced him with Chief Operations Officer Tom Dooley. In late September, Dooley announced he was resigning, effective mid-November. Amidst the turbulence, the company declared a 50% cut in its quarterly dividend—a move we felt was prudent. Clearly in the short term the news from Viacom is unsettling, but we continue to believe in the company’s assets and competitive positioning long term.

      


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

    Other holdings fell back a bit. Jam, peanut butter and coffee company J.M. Smucker Co. (NYSE:SJM) retreated -10.64% due to a recent acquisition that has not met expectations. In 2015, the company moved into pet food as a part of its “center of the store” strategy with the purchase of Big Heart Pet Brands. That unit did not deliver the revenues or profits analysts expected. We believe the shortfall is mainly due to pet food cost deflation and a price war from its chief competitors. We think the management team will get things moving in the right direction and are content to own the stock at a cheaper multiple in the meantime.

      


  • Baron Funds Comments on Rollins Inc.

    Rollins, Inc. (NYSE:ROL) is a leading provider of pest and termite control services for more than two million residential and commercial customers, primarily located in North America. We believe that Rollins operates in an industry with high barriers to entry and a fragmented competitive landscape, and we believe Rollins should be able to consistently increase its market share over time. In North America, Rollins is the number one player in commercial and residential pest control and wildlife control, and the number two player in termite control. Developing a well-regarded national brand requires meaningful investment in sales, marketing, employee training and technology, which smaller players simply cannot afford.


    Pests are a major headache for residential customers, and they can lead to meaningful business issues for commercial customers, like restaurants and hotels. Thus, customers are typically willing to pay for these services, regardless of how the economy is performing. As a result, Rollins has demonstrated impressive operating performance across all market conditions, including positive revenue growth during the 2008 and 2009 recession. Furthermore, Rollins has focused significant effort to improve its retention of employees and customers, which has led recurring revenues to represent approximately 80% of the company’s total.

      


  • Baron Funds Comments on Inovalon Holdings Inc.

    Shares of health care data and analytics vendor, Inovalon Holdings, Inc. (NASDAQ:INOV), detracted from performance, as its financial results fell short of investor expectations and the company reduced its guidance for the remainder of 2016. Management attributed the shortfall to two issues: price reductions in its retrospective risk adjustment unit, and a margin shortfall stemming from investments designed to drive long-term growth. We are hopeful that the company’s latent earnings power will soon become apparent.

      


  • British American Tobacco Proposes Merger With Reynolds

    British American Tobacco (LSE:BATS)(NYSE: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

      


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