john rogers ariel investments

Summary List Placement

Seven heads could be better than one when it comes to figuring out where the stock market is going next.

With stocks near record highs, a new administration coming in, and high expectations for a US economic rebound in the coming months, a group of the world’s most successful and famous investors connected via webcast on Thursday to discuss their ideas and strategies.

The group was made up of leading value fund managers — stock pickers who make their living by buying beaten-down companies that they believe are being underrated. And it comes at a moment those investors have been looking for, with more investors turning their attention to those types of stocks with an economic recovery at hand.

The discussion was moderated by Ariel Investments co-CEO and President Mellody Hobson.

John Rogers, co-CEO, Ariel Investments

Claim to fame: Rogers’ flagship Ariel Fund was at one time the best of the 2010s bull market, and it returned 317% to investors over its span, according to Morningstar. That handily beat the market and almost doubled the return of the S&P Mid Cap 600 Index.

Rogers also once beat Michael Jordan in a game of one-on-one hoops, a claim no one else in the group can match.

His picks: Given a choice of US or international stocks, Rogers is the only one of the crew who says the S&P 500 is a better pick than the MSCI World Index.

He says MSG Entertainment is “probably my absolute favorite stock” because it owns a slew of sports and music venues around the country and is working on ways to improve the concert going experience and has “an enormous amount of cash on the balance sheet.”

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Rogers named ViacomCBS as another top pick and said he likes media stocks.

“To be able to put entertainment, sports, and news all together under one umbrella, we think they’re extraordinarily well positioned,” he said of the latter company. “They have Showtime. They have Paramount. They have the CBS Studios and all the great shows and sports that go along with it.”

His optimism also extends to market-research company Nielsen and to financial services companies like Lazard.

Mario Gabelli, founder and co-chairman, GAMCO

Claim to fame: Gabelli’s firm manages more than $40 billion in assets, and the billionaire investor’s flagship fund has returned 4,650% to investors since its inception in 1986, according to Morningstar. He’s also a winner of Morningstar’s Fund Manager of the Year.

His picks: Gabelli touted two themes from his portfolio. One is sports and sports betting, where he expects “explosive” growth as legalization and the growth of online gambling continues.

Investments in that area include MGM Resorts, in part because of its bid to buy UK sports bettor Entain, online gaming technology company GAN, Madison Square Garden Sports, and Atlanta Braves tracking stock. 

Gabelli’s other theme was infrastructure. He says an investment in Plug Power brought him big returns this year, and he’s also looking at inland waterways, airports, and rural broadband.

Source:: Business Insider


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