In his latest Q1 2022 Letter, John Rogers says long-neglected value stocks are poised to outperform growth. Here’s an excerpt from the letter:
Geopolitical instability, surging inflation, tighter monetary policy, a sharp run up in commodity prices as well as supply chain constraints present risks on a go forward basis. It is in times like these where an active investment manager has the opportunity to prove its merit.
This is when we rely on the Ariel playbook and execute. We are diligently assessing the resilience of our portfolio companies to effectively navigate high inflation and rising rates.
In the new world order, we believe the long-neglected value stocks are poised to outperform growth. Knowing today’s decisions will drive years of future returns, we remain laser-focused on identifying undervalued, quality companies with unique products or services, durable cost advantages, capable management teams and robust balance sheets.
We firmly believe the patient investor that stays the course and consistently owns differentiated businesses at reasonable prices will deliver superior returns over the long run.
You can download the entire letter here:
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