Financials Dominate Ariel Investments’ Top Holdings

Page 1 of 2

Now in its thirtieth year of existence, Ariel Investments is a dinosaur relative to some of the fly-by-night funds that have come and gone in the twenty-first century, many of which succumbed to the flight of assets and loss of value during the 2008 market turmoil. Started by Princeton-alum John W. Rogers in 1983, the fund has grown to manage over $4.6bn in assets as of its last 13F filing in September of 2012. Diving into the SEC document let us take a glimpse at his five largest holdings and gave us some insight as to Rogers’ main areas of investment focus.

First American Financial Corp

First American Financial Corp. (NYSE:FAF) tops the list of fund holdings, with approximately 4% of assets employed in the stock. FAF has been one of Roger’s top holdings since early last year, and it has been quite the winner for him. In the last year alone, the stock price has increased 76%, helped along by multiple earnings beats and upgrades by the likes of Barclays. The financial services provider has an alarmingly low PEG of 0.24, but we’re worried that the rise from trailing P/E to forward P/E could be evidenced by a smaller projected stock price in the future. We concur with analysts on the Street that this is a hold and an investor jumping in now may have missed the boat.

Next up is the financial advisory and asset management company Lazard Ltd. (NYSE:LAZ). With clearly defined global streams of business, Lazard has avoided some of the convoluted chaos that claimed some of the world’s largest banks and asset managers. However, the volatility versus the market still exists with the stock’s high beta of 2, and a very high price-to-book ratio of 5.46 throws up some red flags. Despite a respectable gain in 2012, analysts are pulling in the reigns, and we expect the price one year out to be a dollar less than where it’s trading now ($33 versus a close of $34.01 on January 18th) (check out what other insiders think of LAZ here.)

Rogers currently has over $180mm employed in the international media and marketing company Gannett Co Inc (NYSE:GCI), most notably known for publishing the newspaper “USA Today”. Large newspaper players (including competitors News Corp and the New York Times) have been struck with hard times during the rise of the web, but financial metrics look positively upon GCI. While margins may not be as glamorous as before digital circulation, GCI trades at a respectable forward price-to-earnings of 9 and has both positive quarterly earnings and revenue growth over the same period a year prior. In this specific case, Rogers may be chasing the impressive dividend yield of 4%, the highest of his top five holdings.

Read on to see the rest of Ariel’s top stocks.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!