Tags: Rogers | Ariel | sports | stocks

Ariel’s Rogers Seeks Victories With Sports Stocks

Friday, 22 Jun 2012 06:38 AM

By Dan Weil

Legendary money manager Peter Lynch is famous for urging investors to place their money in companies they know through personal experience.

Many Americans are avid sports fans, and John Rogers, a fund manager at Ariel Investments, puts his knowledge to work with investments in some sports-related stocks.

“[Sports] really does fit within our circle of competence,” he tells Morningstar.com. “I joked that I was a vendor at Wrigley Field and Sox [Comiskey] Park for six years and got to know a lot about sports through that, and then I got to play basketball at Princeton.”

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

Rogers’ favorite sports stocks include Madison Square Garden (Ticker: MSG), which owns the New York Knicks and Rangers, and International Speedway (ISCA), which owns NASCAR racetracks.

As for MSG, “Back when the NBA lockout was going strong, people got very fearful,” he says. “They thought that the whole season would be lost, and the stock price drifted lower.” But the strike ended, of course, and the stock has risen.

As for International Speedway, its stadiums are huge, some holding more than 100,000 fans, Rogers notes. “Those are very hard to replicate. [And] to replicate the relationship with NASCAR is, we think, next to impossible.”

But exercise caution in making sports investments.

You may be an expert fan, but that doesn’t make you an expert investor like Rogers. Don’t put your money into any sports venture that you don’t fully understand.

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

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