In this article, we discuss 10 Stocks to Buy in 2022 According to John Rogers’ Ariel Investments. You can skip our detailed analysis of Ariel Investments’ strategy and the current market condition and go directly to 5 Stocks to Buy in 2022 According to John Rogers’ Ariel Investments.
John Rogers is a popular portfolio manager and founder of Ariel Investments. According to the fund’s last reported filing for Q2 2022, the fund managed $10 billion in securities and had a top 10 company concentration of 29.7%. John Rogers majored in economics from Princeton University and subsequently worked as a stockbroker for 2.5 years, after which he launched Ariel Investments in 1983. John Rogers got recognition for his unique investment approach, which entailed investing in small-sized companies with a market cap of $50 million to $1 billion.
Ariel Investments is a peculiar fund when it comes to its investment strategy. The fund invests in relatively unknown companies which are of small to medium size and is focused on attracting small investors into the fund. The stocks in the fund’s portfolio are hand-picked by John Rogers, which he thinks are primed to outperform the market, especially in periods of downturns. John Rogers identifies companies which have a sustained earnings history and operate in sectors which are often ignored by large investors and Wall Street banks.
The current condition of the equity markets around the world is extremely volatile as the FED continues on its rate hike to fight inflation. Traders are now pricing in a 75-basis point rate hike in the next meeting of the US central bank, which will then further elevate the likelihood of a recession. This kind of volatile market environment favors bottom-up stock picking. The rotation from growth stocks to value stocks will continue as long as the health of the economy continues to deteriorate. This is why we think that John Rogers’s fund offers some unique stocks which have a good track record of earnings and are expected to provide a good return on investment even in the current bear market.
Some of the notable top picks of Ariel Investments include Microsoft Corporation (NASDAQ:MSFT), Mattel Inc (NASDAQ:MAT) and Mohawk Industries, Inc. (NYSE:MHK). But in this article we will take a look at the new stock picks of the hedge fund.
John Rogers of Ariel Investments
We picked these stocks from the second quarter portfolio of Ariel Investments. During the June quarter, the fund initiated new stakes in eight of these stocks and increased its hold in the other two companies.