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Sydnee Gatewood
Sydnee Gatewood
Articles (1120) 

Ariel Investments’ Rupal Bhansali Taking GuruFocus Reader Questions

Ask your question for a Q&A with 2020 Value Conference speaker

Rupal Bhansali, the chief investment officer for international and global equities at John Rogers (TradesPortfolio)' Ariel Investments, is taking questions from GuruFocus readers this week. To ask your question, post it in the comments below.

Bhansali, who manages the Chicago-based firm's Ariel Global Fund and Ariel International Fund, began her buy-side career at Soros Fund Management over 20 years ago. She joined Ariel in 2001 and now manages approximately $7 billion in portfolios for both institutional and retail clients.

The newest member of the prestigious Barron’s Investment Roundtable, Bhansali recently published a book through Columbia Business School Publishing on non-consensus investing. Titled “Non-Consensus Investing: Being Right When Everyone Else Is Wrong,” Bhansali said she wrote her book to “pay it forward,” as the last chapter contains encouragement and advice for young women in finance looking to break through the glass ceiling.

With a traditional long-term value approach, Bhansali searches for investment opportunities among undervalued companies in both domestic and international markets. Conducting bottom-up research when building the portfolios, she actively seeks to avoid unnecessary risks. In her second-quarter commentary, she wrote that she sees “several areas of concern” in the market currently, including the “deterioration in corporate debt and credit ratings, the slowdown in global GDP growth, lingering trade tensions and the bifurcation between the market’s beloved FANG stocks and our preferred ‘MANG’ companies.”

As of the end of the second quarter, the Global Fund, which is composed of 58 stocks, had the greatest weighting in health care at 22.19%, followed by communications services at 19.55%.

Its top five holdings were Microsoft Corp. (NASDAQ:MSFT), Roche Holding AG (XSWX:ROG), GlaxoSmithKline PLC (NYSE:GSK), Gilead Sciences Inc. (NASDAQ:GILD) and Philip Morris International Inc. (NYSE:PM).

Since its inception in 2011, the fund has returned 8.09% versus the MSCI AWI Index’s 9.98% return.

Ariel’s International Fund, which is composed of 62 as of the end of the second quarter, had the greatest weighting in communication services at 26.01%, followed by health care at 13.32%.

The fund’s top five holdings were Deutsche Boerse AG (XTER:DB1), Roche Holding, Nintendo Co. Ltd. (TSE:7974), GlaxoSmithKline and China Mobile Ltd. (NYSE:CHL).

The fund has returned 5.46% since its inception in 2011. In comparison, the MSCI ACWI ex.-U.S. Index has returned 6.31%.

We are fortunate to have Bhansali as one of our speakers at the 2020 GuruFocus Value Conference in Omaha, Nebraska next year. For more information on the event and to purchase tickets, please go here.

Bhansali is happy to share her investing expertise with you. Again, to ask her a question about investing, simply post it in the comments section below! GuruFocus will post her answers shortly in an upcoming article.

About the author:

Sydnee Gatewood
I am the editorial director at GuruFocus. I have a BA in journalism and a MA in mass communications from Texas Tech University. I have lived in Texas most of my life, but also have roots in New Mexico and Colorado. Follow me on Twitter! @gurusydneerg

Rating: 5.0/5 (1 vote)

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Comments

James Li
James Li premium member - 4 weeks ago

Thank you for taking our questions.

One major issue in the global markets right now is the U.S. – China trade negotiations. How do you expect the trade deal, or lack of a trade deal, between the U.S. and China affect your investing strategy in the upcoming months?

andriumg10
Andriumg10 - 4 weeks ago    Report SPAM

Buenas Rupal Bhansali.

Gracias por tu interes en las respuestas de GuruFocus.

Crees que es una buena opcion invertir en fondos indexados y en ETFS para inversionistas particulares medios?.

towens1854
Towens1854 - 4 weeks ago    Report SPAM

How do you avoid value traps?

I know you've said FAANG is overvalued, but how do you steer clear of names that look cheap but are melting away? Thanks and I can't wait to read your book.

Margaret Moran
Margaret Moran premium member - 4 weeks ago

Thank you for your time!

From your viewpoint, how and in what ways will the recent U.S. interest rate cuts affect growth stock overvaluation and the potential for an economic recession?

Russell.K
Russell.K - 4 weeks ago    Report SPAM

Where do you get your investment ideas?

How do you assess management?

Do you use an asset-based, DCF and multiple-based methodology for valuation?

How does one adjust free cash flows to get a realistic value?

What amount of debt is troubling for any of your portfolio companies?

grdusane
Grdusane premium member - 4 weeks ago

Buffet Indicator ( mkt cap/ GDP or GNP) at 140%. whats your view on recession or market mayhem?

abdulla2000bh2000
Abdulla2000bh2000 premium member - 4 weeks ago

Thank you for giving us the opportunity to ask you questions.

I notice that some Gurus buy stocks of distressed companies. Even Warren Buffett (Trades, Portfolio) who said: "it's better to buy a wonderful company at a fair price than buy a fair company at a wonderful price" can be seen buying companies in dire financial situations. The same can be said about Charlie Munger (Trades, Portfolio), who teaches that we should buy good companies. Yet, it can be observed that he bought distressed companies.

Isn't that confusing?

Thank you.

paullh
Paullh - 4 weeks ago    Report SPAM

What do you recommend for income-producing investments?

michael.agne
Michael.agne - 4 weeks ago    Report SPAM

Given the outlook moving forward as central banks continue to expand the monetary base and drive both yields lower and asset prices higher, how can anyone accurately gauge risk given the fact that fundamentals seem to be focused upon a two tiered economy one by which wealthy asset holders reap all the rents and the mainstream non wall street just idle by. Do you think that this is sustainable and if so what are the appropriate long term investment themes you would focus on.

Sakura
Sakura - 4 weeks ago    Report SPAM

would like to know altoman Z score of JA solar 2019 if ever.thank you.

abdulla2000bh2000
Abdulla2000bh2000 premium member - 3 weeks ago
Thank you for giving us the opportunity to ask you questions.

I notice that some Gurus buy stocks of distressed companies. Even Warren Buffett (Trades, Portfolio) who said: "it's better to buy a wonderful company at a fair price than buy a fair company at a wonderful price" can be seen buying companies in dire financial situations. The same can be said about Charlie Munger (Trades, Portfolio), who teaches that we should buy good companies. Yet, it can be observed that he bought distressed companies.

Isn't that confusing?

Thank you.



rittifozdar
Rittifozdar premium member - 3 weeks ago

Dear Ms Bhansali,

Thanks for taking the question.

Value stocks have lagged growth stocks over the last decade. Do you believe that the reversal of mean will occur at some point and value will start outperforming growth going forward? Also, with ongoing US-China trade war, we have experienced increased volatility in the markets. Is this just beginning of new economic uncertainty and increased volatility period? What is your team's prediction on when the US economy will sink into recession?

derrickchang79
Derrickchang79 - 3 weeks ago    Report SPAM

Dear Ms. Bhansali,

Watched you on Wealthtrack and took your advice on being defensive. Last year I was 60% in cash which was the best investment one could make. Thank you. I did not lose any thing nor did I make that much. At least I was able to sleep well every night knowing my money was safe. I watch all your stock picks every day and notice they neither here nor there but they are good paying dividend stocks especially Gild and GSK. I missed the boat on MS when Steve Balmer was there. I made my millions on three 3 stocks, TSM at 10, LVS at 20, NOC at 60's. I took advice from Steven Kim on TSM, a friend on LVS, and NOC myself since I retired there after 22 years. I didn't use any value investing knowledge nor attend any elite business school. Maybe it was plan luck or listening to smart people like you. Anyway, my question to you is when are you going on Wealthtrack again so that I can hear your advice on how one should invest for the coming 10 years.. I love to hear your top down investment strategy. Thanks again on your defensive strategy.

RABINOVICI
RABINOVICI - 3 weeks ago    Report SPAM

Dear Ms. Bhansali,

Many of my thinks were already asked. Therefore, I would ask about 'manipulations'. What is the place of manipulations in the stock market? How it would be possible for me, as a complete outsider, to defend myself against manipulations? How much are 'the analysts' themselves doing manipulations? I thank you very much!

skrappy53
Skrappy53 - 3 weeks ago    Report SPAM

Dear Ms. Bhansali,

My quaestion relates to dark pools. Do you know when trades take place off of exchanges whether they get "counted" in the daily volume charts we see? I have always wondered about how reliable the time / price charts are for the stocks I follow when i know large blocks of stock are trading in dark pools. Specifically, how soon after a trade is conducted in a dark pool is the volume and price reported and included in the daily volume that all us average invstors see? Or is it reported at all? This has been a burning question of mine for some time. Thank you!! - Nick

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