Ariel’s John Rogers Defends Active Management

Before becoming the founder and chairman of Chicago-based Ariel Investments, John Rogers Jr. was a varsity basketball player at Princeton University and a winner at both Wheel of Fortune and Warren Buffett’s NetJets Poker Invitational in Las Vegas. This according to a recent Barrons article. During a recent interview with Barrons, Rogers said, “I worry that our industry hasn’t done an effective job of defending itself and showing the value that is added by active management.” Here are some interview highlights: Rogers gravitates toward businesses with strong recurring revenue, such as real estate management companies. “These are businesses that fit […]

Index Fund Bubble on the Horizon

Index funds have been “bumping up” the prices of all stocks in the major indexes as managers put “record amounts of shareholder money to work,” says an article in last week’s Institutional Investor. This has created a bubble that could spell trouble for passive investors but present opportunities for active ones. John Rogers, CEO of $2 billion Ariel fund, said that when the downturn occurs, the “mindless selling that index funds must do” will allow active managers to shop for values, and investors will be “shocked” by how much they paid for securities simply because they were part of a benchmark.  […]

Veteran Fund Managers Part II

In yesterday’s blog post, we shared some insights from tenured money managers regarding the patience necessary for investment success. An article in last weeks’ InvestmentNews offered more feedback from this group of sage investors, which included; Ariel Fund’s John Rogers, Robert Bacarella of the Monetta fund, Mario Gabelli of Gabelli Asset Management Company and John Carey of the Pioneer fund. When asked how they’ve managed to stay in the competitive world of fund management, here are their responses: Gabelli: “We’re obsessed with studying our companies, reading annual reports.” He added, “We have knowledge that we’ve accumulated over an extended period […]

Stocks for the Sporting Investor

Top fund manager John W. Rogers Jr. says there’s money in sports — and the stocks of sports-related companies. “Sports is in the sweet spot of transformative technology and media that have made these pastimes even more ­ubiquitous and entertaining,” Rogers writes in his latest Forbes column. “And more lucrative.” Rogers says high-definition television is allowing sports fans to watch games in better quality and mobile devices are letting them watch games on the go. And, while the rise of the DVR has let consumers bypass ads on TV shows, most sports fans watch games live, and thus can’t fast-forward […]

Focus on Facts, Not Fear, Says Rogers

In his latest Forbes column, John W. Rogers Jr. stresses the importance of staying rational amid market turbulence, and says he’s bullish on the financial sector because investors have been treating it with an irrational amount of fear. “An unemotional response is the right one in many critical moments — be it the game-winning shot or a life-saving procedure,” Rogers writes. “But it’s hard to hold it together in a crisis. If you keep your wits and buy during panics, the rewards can be outsized.” One example of rational thinking leading to investing profits, he says, involves oil giant BP. […]