Ariel's John Rogers reveals his pandemic picks, including names he calls an 'extreme bargain' today

Published Thu, Nov 19 202010:22 AM EST

(This story is for CNBC Pro subscribers only.) Ariel Investments Chairman and Co-CEO John Rogers made big bets on a handful of stocks during the market rout in March that paid off in a big way. But Rogers told CNBC some of these names are still bargains. "These companies were getting crushed during the height of the pandemic, people didn't believe in them, there was an opportunity to buy some extraordinary brands at bargain prices," Rogers said on CNBC's "Squawk Box." Toymaker Mattel — Ariel Investments' largest position in any stock — is up more than 120% from its 52-week low in March. "Not only is the Barbie exceedingly strong and Hot Wheels are exceedingly strong, they're starting to bring back some of the old brands: Fisher Price is coming back, American Girl is coming back," said Rogers. "They've slashed costs, really right-sized their manufacturing footprint throughout the world." "Its had a nice recovery but we still think it's got a long, long way to go," Rogers added. Skiing company Vail Resorts was another big pick for Ariel Investments. The hospitality stock is up more than 115% since its low in March. "The stock had gotten crushed...and I'd followed Vail for a long time but it was always just too expensive," said Rogers. "So you had to be patient and wait for it to come in at a bargain price because people were no longer skiing and they sort of missed the spring season because of Covid, people were very afraid that people wouldn't come back to Vail and all their great mountains. We thought this was a chance to buy a world class brand at a bargain price and put a name in the portfolio that we can own for the long, long run." "Vail is really perfectly situation because if you have skis on, you're six feet away from your counterparts and fellow skiers. You're going to be wearing a mask most of the time. We think they're going to be able to come back faster than most leisure companies," Rogers added. Media giant ViacomCBS was another purchase during the pandemic that has paid off for Ariel Investment. ViacomCBS is up more than 200% since March. "We believed in the management team there," said Rogers. "Viacom brands are extraordinarily strong, CBS brands are extraordinarily strong. And the ability now to come together and have a streaming service under the name Paramount, people are really staring to value that." Rogers said despite that epic comeback in ViacomCBS's stock, it is still cheap today. "The stock got crushed, it went all the way down to $11 and its back up to $33, but it continues to sell at a very low multiple and the content is underestimates and its got some great assets. It's still an extreme bargain we think even today." Owner of dental brands, Envista Holdings , is another one of Ariel's pandemic picks. The stock is up more than 180% from its March low. "We kept hoping it would come into our price range and because of the pandemic people were not going to dental offices, they were putting off procedures, so the dental stocks got crushed again and for us that just didn't make any sense," said Rogers. "If you've got pain in your mouth and your teeth are hurting you have to come back. Invista's been a great, great stock for us and we think its another long, long term winner," he added. Rogers also said Madison Square Garden Networks and Madison Square Garden Entertainment are "cheap and well positioned."

John Rogers Jr. Ariel Investments Chairman & CIO

Adam Jeffery | CNBC

(This story is for CNBC Pro subscribers only.)

Ariel Investments Chairman and Co-CEO John Rogers made big bets on a handful of stocks during the market rout in March that paid off in a big way. But Rogers told CNBC some of these names are still bargains.

"These companies were getting crushed during the height of the pandemic, people didn't believe in them, there was an opportunity to buy some extraordinary brands at bargain prices," Rogers said on CNBC's "Squawk Box."