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This text is a part of a sequence that gives an ongoing evaluation of the adjustments made to Ariel Investments’ 13F inventory portfolio on a quarterly foundation. It’s based mostly on Ariel Investments’ regulatory 13F Form filed on 5/13/2022. John Rogers’ 13F portfolio worth decreased ~5% from $11.86B to $11.27B this quarter. The portfolio is diversified with latest 13F experiences displaying round 150 positions. There are 60 securities which can be considerably massive (greater than ~0.5% of the portfolio every) and they’re the main target of this text. The biggest 5 stakes are Madison Sq. Backyard Leisure, Mattel, Baidu, Philip Morris, and Microsoft. They add as much as ~17% of the portfolio. Please go to our Tracking John Rogers’ Ariel Investments Portfolio sequence to get an thought of their funding philosophy and our last update for the fund’s strikes throughout This autumn 2021.
Their flagship mutual fund is the Ariel Fund (MUTF:ARGFX) incepted in 1986. Ariel Fund has a lifetime annualized return of 11.25% in comparison with 10.91% for the Russell 2500 Index and 11.02% for the S&P 500 Index. In the latest 10-year interval, it has underperformed the S&P index: 12.23% vs 14.64%. The opposite mutual funds within the group are Ariel Appreciation Fund (MUTF:CAAPX), Ariel Focus Fund (MUTF:ARFFX), Ariel Worldwide Fund (MUTF:AINTX), and Ariel World Fund (MUTF:AGLOX).
Notice: A few of the high holdings of their Worldwide and World funds aren’t within the 13F report as they don’t seem to be 13F securities. They’re Roche Holding AG (OTCQX:RHHBY), Deutsche Boerse AG (OTCPK:DBOEY), Endesa SA (OTCPK:ELEZF), Nintendo Firm (OTCPK:NTDOY), Michelin (OTCPK:MGDDY), Koninklijke Ahold Delhaize (OTCQX:ADRNY), and Snam SpA (OTCPK:SNMRY).
Stake Disposals:
TEGNA Inc. (TGNA): The small 1.46% stake in TGNA was disposed this quarter.
Notice: Customary Normal is buying TEGNA in a $24 per share all-cash-deal introduced in February.
Stake Will increase:
Baidu Inc. (BIDU): BIDU is at present the third-largest place at ~3% of the portfolio. It was established in 2013 with the majority of the present place bought in 2015 at costs between ~$134 and ~$234. The interim years had seen minor shopping for and in 2018 there was a ~25% enhance at costs between $157 and $273. Q1 to Q3 2019 noticed one other one-third enhance at costs between ~$97 and ~$142. H1 2020 had seen a ~50% stake enhance at costs between ~$84 and ~$145. Q1 2021 noticed a ~18% promoting at costs between ~$204 and ~$340 whereas in Q3 2021 there was a ~12% stake enhance at costs between ~$137 and ~$202. The inventory at present trades at ~$143. This quarter additionally noticed a ~9% enhance.
Microsoft Corp. (MSFT): MSFT is now at 2.75% of the 13F portfolio. It was a really small stake first bought in 2010. The 2013-2015 timeframe noticed a 2.2M share build-up at costs between ~$26 and ~$56. Current exercise follows: 2019 had seen a ~22% discount at costs between ~$100 and $160. Final two years noticed one other ~50% promoting at costs between ~$137 and ~$343. The inventory at present trades at ~$253. They’re harvesting positive factors. There was a marginal enhance this quarter.
Lazard Ltd. (LAZ): LAZ is a 2.62% of the portfolio place first bought in 2009 at costs between ~$19 and ~$38. Subsequent yr noticed a stake-tripling at costs between ~$25 and ~$36. The interim interval noticed additional shopping for however in 2014 there was a ~25% promoting at costs between ~$39 and ~$50. Current exercise follows. 2019 noticed a ~15% enhance at costs between ~$31 and ~$40.50. The three quarters via Q3 2021 noticed one other ~45% stake enhance at costs between $38.70 and $48.75. The inventory is now at $31.34. Final two quarters have additionally seen minor will increase.
Notice: Ariel Investments have a ~7% possession stake in Lazard.
Kennametal Inc. (KMT): KMT is a 2.46% of the portfolio place. It was established in 2014 at costs between $34 and $52. The place had seen minor shopping for over time. Q1 2020 noticed a ~15% stake enhance at costs between $15 and $37. The three quarters via Q3 2021 had seen one other ~43% stake enhance at costs between ~$33 and ~$42. The inventory at present trades at $22.93. Final two quarters have additionally seen minor will increase.
Notice: Ariel Investments has a ~11% possession stake in Kennametal Inc.
Jones Lang LaSalle (JLL): The two.41% JLL place is a really long-term stake first bought in 2001. Subsequent yr noticed an enormous stake build-up at costs between ~$14.50 and ~$25. The place has seen promoting since 2004. The majority of the promoting occurred in 2006 at costs between ~$55 and ~$93. Most years since have additionally seen promoting. H2 2020 noticed a ~25% stake enhance at costs between ~$90 and ~$154. The inventory at present trades at ~$170. Final a number of quarters have seen solely minor changes.
Core Laboratories (CLB): The two.30% CLB stake was bought in H2 2021 at costs between ~$22 and ~$44 and the inventory at present trades under that vary at $19.85. This quarter additionally noticed a ~5% stake enhance.
Notice: They’ve ~18% possession stake within the enterprise.
Stericycle Inc. (SRCL): SRCL is a 2.27% of the portfolio place established in Q1 2018 at costs between ~$58 and ~$76. The majority of the present stake was bought in H2 2018 at costs between ~$36.50 and ~$71. Q1 2021 noticed a ~20% stake enhance at costs between ~$65 and ~$72.50. Since then, the exercise has been minor. The inventory at present trades at $40.90.
Northern Belief (NTRS): NTRS is a 2.14% very long-term place first bought in 2002. The 2002-2004 timeframe noticed a ~10M share stake constructed at costs between ~$30 and ~$60. The place has since been bought down. The majority of the promoting was within the 2005-2007 timeframe at costs between ~$42 and ~$81. Previous few quarters have seen minor will increase. The inventory at present trades at $93.36.
Manchester United (MANU) and Gentex Corp. (GNTX): These two positions bought in Q3 2021 have been elevated over the past two quarters. MANU is a 1.58% of the portfolio place established at costs between ~$12.25 and ~$20.50 and the inventory at present trades under that vary at $11.50 The two.12% GNTX stake was bought at costs between ~$27.50 and ~$38 and the inventory at present trades close to the low finish of that vary at $27.97.
Notice: They’ve a ~24% possession stake in Manchester United.
Snap-on Inc. (SNA): SNA is a ~2% of the portfolio stake bought in 2012 at costs between ~$52 and ~$80. Subsequent yr noticed a ~50% stake enhance at costs between ~$80 and ~$110. The inventory at present trades at ~$197. Final a number of years have seen solely minor changes.
Mohawk Industries (MHK): MHK is a ~2% of the portfolio place constructed over the past three years at costs between ~$59 and ~$230 and it’s now at ~$123.
Adtalem World Schooling (ATGE), Affiliated Managers Group (AMG), Axalta Coating (AXTA), Amdocs Ltd. (DOX), BorgWarner Inc. (BWA), Boyd Gaming (BYD), Brink’s Co. (BCO), Charles River Laboratories (CRL), Charles Schwab (SCHW), Fairness Commonwealth (EQC), Gilead Sciences (GILD), Goldman Sachs (GS), Janus Henderson Group (JHG), Keysight Applied sciences (KEYS), Masco Corp. (MAS), Johnson & Johnson (JNJ), KKR & Firm (KKR), Laboratory Corp (LH), Littelfuse Inc. (LFUS), Madison Sq. Backyard Sports activities (MSGS), Norwegian Cruise Line Holdings (NCLH), nVent Electrical (NVT), OneSpaWorld Holdings (OSW), Paramount World (PARA) beforehand ViacomCBS, Resideo Applied sciences (REZI), Royal Caribbean Cruises Ltd. (RCL), and Stanley Black & Decker (SWK): These small (lower than ~2% of the portfolio every) stakes have been elevated this quarter.
Notice: Ariel Investments has important possession stakes within the following companies: Adtalem World Schooling, Madison Sq. Backyard Sports activities, and OneSpa World Holdings.
Stake Decreases:
Madison Sq. Backyard Leisure (MSGE): MSGE is at present the most important 13F stake at 4.49% of the portfolio. It was constructed over the past seven quarters at costs between ~$64 and ~$116. The inventory at present trades under that vary at ~$52.97. There was a marginal discount this quarter.
Notice: Ariel Investments has a ~23% possession stake in Madison Sq. Backyard Leisure.
Mattel, Inc. (MAT): The three.49% MAT place was first bought in 2016 at costs between ~$25 and ~$34. Subsequent yr noticed a stake doubling at costs between ~$13 and ~$30.50. 2018 additionally noticed a one-third stake enhance at costs between ~$9.50 and ~$18. Q1 2019 noticed a ~12% trimming whereas the following two quarters noticed a one-third enhance at costs between ~$9.50 and ~$14.50. Q1 2020 noticed one other ~15% stake enhance at costs between $7.25 and $14.75. Final two quarters had additionally seen a ~17% enhance at costs between ~$18 and ~$23. The inventory at present trades at $22.10. This quarter noticed a ~3% trimming.
Notice: They’ve ~5% possession stake within the enterprise.
Philip Morris (PM): A really small place in PM was first bought in 2013. By 2017, the stake was constructed to a ~1M share stake. Subsequent yr noticed the place elevated by ~220% at costs between $66 and $110. 2019 had seen one other ~20% stake enhance at costs between $70 and $91. The three quarters via Q3 2020 had additionally seen a ~20% stake enhance. Q1 2021 noticed one other ~15% stake enhance at costs between ~$79 and ~$91 whereas subsequent quarter there was a ~20% promoting at costs between ~$88 and ~$101. The inventory at present trades at ~$99, and it’s at present at ~3% of the portfolio. Final three quarters have seen solely minor changes.
BOK Monetary (BOKF): The two.74% BOKF stake was constructed over the past three years at costs between ~$37 and ~$116. The inventory at present trades at $76.28.
Envista Holdings (NVST): The two.49% NVST stake was bought in Q1 2020 at costs between ~$12 and ~$33. There was a ~75% stake enhance subsequent quarter at costs between ~$13 and ~$24.50. The inventory at present trades at $36.30. Final seven quarters have seen solely minor changes.
First American Monetary (FAF): FAF is a 2.36% of the portfolio stake established in 2011 at costs between ~$11 and ~$17. 2013 additionally noticed a ~25% stake enhance at costs between ~$21 and ~$28. The place has seen constant reductions since 2015. Current exercise follows: 2019 had seen a ~20% promoting at costs between ~$45 and ~$64. There was a ~25% stake enhance in This autumn 2020 at costs between ~$44.50 and ~$54.50. That was adopted with an analogous enhance in Q1 2021 at costs between ~$51 and ~$58. This quarter noticed a ~15% promoting at costs between ~$64 and ~$81. The inventory is now at ~$50.
Interpublic Group (IPG): The two.35% IPG stake is a really long-term place that goes again nearly twenty years. It was first bought in 2001 and the place was constructed to over 41M shares by 2005 at costs between $9 and $42. Current exercise follows: 2018 noticed a ~20% promoting at costs between $20 and $25 whereas subsequent yr noticed a ~40% stake enhance at costs between $19.50 and $24. There was a ~25% promoting over the past three quarters at costs between ~$31 and ~$39.50. The inventory at present trades at $27.23.
Credicorp Ltd. (BAP): BAP is a 2.30% of the portfolio place constructed over the past three quarters at costs between ~$92 and ~$178. The inventory at present trades at ~$125. There was a minor ~2% trimming this quarter.
Nielsen Holdings (NLSN): The 1.63% NLSN stake was bought in 2017 at costs between ~$36 and ~$45. Subsequent yr noticed a ~60% stake enhance at costs between $22 and $37.50 and that was adopted with a ~45% additional enhance in 2019 at costs between $19.50 and $27. This autumn 2020 noticed an analogous enhance at costs between ~$13.50 and ~$21. Final 4 quarters had seen one other ~50% enhance at costs between ~$19.50 and ~$28. There was a ~60% promoting this quarter at costs between ~$16.50 and ~$27. The inventory at present trades at ~$23.
Notice: In March, Nielsen Holdings entered into an settlement to be acquired by a consortium led by Evergreen and Brookfield for $28 per share money.
J. M. Smucker (SJM): SJM is a really long-term stake that has been within the portfolio for nicely over a decade. The unique large stake was bought down in 2008. Q1 2020 noticed one other ~30% promoting at costs between ~$96 and ~$119. Q1 2021 noticed a ~40% stake enhance at costs between ~$111 and ~$131. There was a ~14% trimming this quarter. The inventory at present trades at ~$124 and the stake is at 1.53% of the portfolio.
ADT Inc. (ADT): ADT is a 1.37% of the portfolio place bought over the 2 quarters via Q3 2021 at costs between ~$8.50 and ~$11.50 and the inventory at present trades under that vary at $6.18. This quarter noticed a ~17% promoting at costs between ~$7 and ~$8.65.
Aflac Inc. (AFL), Berkshire Hathaway (BRK.B), CBRE Group (CBRE), Test Level Software program (CHKP), Knowles Corp. (KN), Progressive Company (PGR), Simpson Manufacturing (SSD), Journey.com (TCOM), and Walgreens Boots Alliance (WBA): These small (lower than 1.5% of the portfolio every) stakes have been lowered in the course of the quarter.
Notice: Ariel Investments has a big possession stake in Knowles Corp.
Under is a spreadsheet that exhibits the adjustments to John Rogers’ Ariel Investments 13F portfolio holdings as of Q1 2022:
John Rogers – Ariel Investments’ Q1 2022 13F Report Q/Q Comparability (John Vincent (creator))