John Rogers
Ariel appreciation fund
Images of tortoises line the Chicago offices of John Rogers. The strategy: Slow and steady wins the race. Rogers hunts for beaten-down companies with strong franchises and cash flows that are trading below their "intrinsic value"-- what he deems a company's worth on the private market. That has led his Ariel Appreciation Fund to an 8% annualized return this decade, crushing 93% of his rivals.
One long-term pick: Hewitt Associates. The outsourcing firm, which handles businesses' health care and benefits plans, saw profits decline as it strayed into new businesses and trades at just 13 times trailing earnings. Rogers considers that a 35% discount to its true value.
He foresees a turnaround, especially with health reform necessitating many HR changes: "They get in the middle of all that."
--S.C.
NEXT: Occidental Petroleum
