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.
Rogers’ most noteworthy investment of the second quarter was his purchase of a 4,890,196-share stake in Tegna Inc. (TGNA, Financial), a McLean, Va.-based broadcast and digital media company, for an average price of $28.81 per share. The transaction had a 1.77% impact on his portfolio.
Tegna has a market cap of $5.29 billion and an enterprise value of $9.79 billion. It has a P/E of 5.3, a Price/Book of 1.6 and a Price/Sales of 0.9. Carl Icahn (Trades, Portfolio), Manning & Napier Advisors, Inc., Diamond Hill Capital (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), John Keeley (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and David Dreman (Trades, Portfolio) have shares of Tegna in their portfolios.
The National Association of Black Journalists recently gave eight 2015 Salute to Excellence Awards to Tegna in recognition of “journalism that best covered the black experience or addressed issues affecting the worldwide black community” in the last year.
Rogers also acquired a 3,185,615-share stake in Mattel Inc. (MAT, Financial), a toy manufacturing company based in El Segundo, Calif., for an average price of $26.27 per share. The deal had a 0.92% impact on Rogers’ portfolio.
Mattel has a market cap of $7.83 billion and an enterprise value of $9.62 billion. It has a P/E of 19.0, a Price/Book of 3.1 and a Price/Sales of 1.3. Brian Rogers (Trades, Portfolio), Sarah Ketterer (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Meridian Funds (Trades, Portfolio), Jim Simons (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Tom Gayner (Trades, Portfolio) and John Hussman (Trades, Portfolio) have shares of Mattel in their portfolios.
Other new stakes in Rogers’ portfolio are Occidental Petroleum Corp. (OXY, Financial), Markit Ltd. (MRKT, Financial), Electro Rent Corp. (ELRC, Financial) and Leapfrog Enterprises Inc. (LF, Financial).
Rogers added to 84 existing stakes in his portfolio. Most of his additions were modest. The two largest additions were to his stakes in Southern Co. (SO, Financial) and Anixter International Inc. (AXE, Financial).
Rogers more than tripled his stake in Southern, an Atlanta-based electric utility holding company. He bought 946,393 shares for an average price of $43.58 per share. The transaction had a 0.45% impact on his portfolio.
Southern has a market cap of $38.69 billion and an enterprise value of $66.21 billion. It has a P/E of 18.1, a Price/Book of 1.9 and a Price/Sales of 2.2. HOTCHKIS & WILEY, Pioneer Investments (Trades, Portfolio), Jim Simons (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), John Hussman (Trades, Portfolio), Ken Fisher (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of Southern in their portfolios.
Southern announced this week that one of its subsidiaries, Southern Power, will purchase a controlling interest in California’s 300-megawatt Desert Stateline Facility from First Solar Inc.
Rogers purchased 596,634 shares of Anixter International, a Glenview, Ill.-based supplier of communications and security products, electrical and electronic wire and cable, fasteners and other small components, for an average price of $70.89 per share. The purchase had a 0.44% impact on his portfolio.
Anixter International has a market cap of $2.1 billion and an enterprise value of $2.83 billion. It has a P/E of 11.6, a Price/Book of 1.7 and a Price/Sales of 0.3. Rogers is Anixter International’s leading shareholder among the gurus; Chuck Royce (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), Jim Simons (Trades, Portfolio), James Barrow (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and David Dreman (Trades, Portfolio) also have shares of Anixter International in their portfolios.
Among the existing stakes to which Rogers added in the second quarter are Baidu Inc. (BIDU, Financial), Gilead Sciences Inc. (GILD, Financial) and Microsoft Corp. (MSFT, Financial).
Reductions and divestitures
Rogers reduced his holdings in 92 existing stakes. Most of the reductions were comparatively modest, but Rogers did make some significant reductions. The most noteworthy was his sale of nearly two-thirds of his stake in Gannett Co. Inc. (GCI), a Tysons Corner, Va.-based media holding company. Rogers sold 3,503,988 shares for an average price of $14.25 per share. The sale had a -1.46% impact on Rogers’ portfolio.
Gannett has a market cap of $1.55 billion and an enterprise value of $1.48 billion. It has a P/E of 2.9 and a Price/Sales of 0.5. Carl Icahn (Trades, Portfolio), Manning & Napier Advisors, Inc., Diamond Hill Capital (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Jim Simons (Trades, Portfolio), Murray Stahl (Trades, Portfolio), John Keeley (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and David Dreman (Trades, Portfolio) have shares of Gannett in their portfolios.
Rogers sold 1,945,306 shares of Western Union Co. (WU), a Meridian, Colo.-based financial services and communications company, for an average price of $21.28 per share. The deal had a -0.45% impact on Rogers’ portfolio.
Western Union has a market cap of $9.43 billion and an enterprise value of $10.1 billion. It has a P/E of 11.4, a Price/Book of 7.3 and a Price/Sales of 1.8. David Abrams (Trades, Portfolio), Brian Rogers (Trades, Portfolio), Bill Frels (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Jim Simons (Trades, Portfolio), Scott Black (Trades, Portfolio), Jeff Auxier (Trades, Portfolio), Bernard Horn (Trades, Portfolio), Mark Hillman (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Chuck Royce (Trades, Portfolio), David Dreman (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of Western Union in their portfolios.
Rogers sold 401,965 shares of Fair Isaac Corp. (FICO), a San Jose, Calif.-based software company, for an average price of $89.7 per share. The transaction had a -0.4% impact on Rogers’ portfolio.
Fair Isaac has a market cap of $2.62 billion and an enterprise value of $3.18 billion. It has a P/E of 30.8, a Price/Book of 6.6 and a Price/Sales of 3.4. Chuck Royce (Trades, Portfolio), Ken Fisher (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of Fair Isaac in their portfolios.
Rogers sold out eight existing stakes in his portfolio in the second quarter. His most significant sale was the sale of a 693,819-share stake in Broadcom Corp. (BRCM), an Irvine, Calif.-based semiconductor company, for an average price of $48.59 per share. The deal had a -0.34% impact on Rogers’ portfolio.
Broadcom has a market cap of $31.16 billion and an enterprise value of $29.57 billion. It has a P/E of 29.0, a Price/Book of 3.3 and a Price/Sales of 3.7. John Paulson (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Eric Mindich (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), George Soros (Trades, Portfolio), Jim Simons (Trades, Portfolio), Steven Cohen (Trades, Portfolio), John Hussman (Trades, Portfolio), Caxton Associates (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and Murray Stahl (Trades, Portfolio) have shares of Broadcom in their portfolios.
The other stakes that Rogers sold were POZEN Inc. (POZN), Sigma Designs Inc. (SIGM), Red Lion Hotels Corp. (RLH), Gaiam Inc. (GAIA), Vanguard MSCI Pacific ETF (VPL), NVIDIA Corp. (NVDA) and State Street Corp. (STT).
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