His view is contrary to what David Einhorn said earlier this week. The hedge fund manager said the strategy may never be out of fashion again, adding that most value investors are shutting down.
The strategy was popularized by legendary investors Warren Buffett and Benjamin Graham and involves buying stocks whose value might be underestimated by the market. Investors can become too focused on short-term trends, Rogers said, and those willing to look three or five years ahead may still find opportunities.
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“We’ve never seen this kind of volatility, ups and downs, intraday ups and downs, it’s something we’ve never, ever experienced,” he said during the interview. ‘event. “But I think volatility should be your friend.”
Rogers said he liked Madison Square Garden Entertainment Corp., which is selling for more than 70% off its private market value. “This has rarely, if ever, happened in Ariel where we find such cheap names,” he said. “The last time was in 2008 and 2009.” The company has an iconic property, he added, and people are looking to get back to concerts and sports games.
He also likes Paramount Global, citing analyst downgrades recently. “Everyone hates him, and although everyone hates him, it creates opportunities, we think,” he said.
Both stocks are down nearly 40% this year, compared to a 25% drop in the S&P 500.
“We’ve found that if you’re willing to do your homework and buy more of these names you really believe in, it works,” he said. “So we are making more trades because there are more opportunities caused by this volatility.”
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