Ariel Investments’ John Rogers said he views this year’s sell-off as a perfect opportunity to find good bargains, even as recent tariff and recessionary fears have clouded the outlook on U.S. markets for many investors. Rogers, Ariel’s chairman, co-CEO and chief investment officer, told CNBC’s “Squawk Box” on Friday that the firm has been picking up shares of companies he likes that became cheap during the pullback. Major indexes remain in the red for the year, but are on pace for their second winning week in a row as enthusiasm picks up on potentially easing global trade tensions. “I don’t think it’s too late [to invest now] but we have been buying steadily throughout this decline and adding to our favorite positions that we’ve owned for a long time,” Rogers said during the interview, conducted in Omaha, Nebraska, ahead of Berkshire Hathaway ‘s annual shareholder meeting this weekend. “It’s stressful … but it’s fun though to get up Monday morning and see opportunities,” Rogers continued. “As Warren always says, you want to buy when everyone’s fearful. You want to take advantage of these opportunities, these bargains that are out there. So it’s an exciting time.” During the downturn, Rogers said his firm has added to its positions in Sphere Entertainment , Madison Square Garden Entertainment and OneSpaWorld Holdings . “OneSpa has been a great holding for us now in the Ariel Fund,” the investor said. OneSpaWorld, which operates a variety of traditional and medi-spa services on cruises and resorts, just reported a first-quarter earnings and revenue beat on Wednesday and said it expects to introduce wellness centers on eight new ships later this year. The company’s shares have risen on the back of its results, but the stock is still down roughly 9% year to date. “We think the cruise line industry is very strong, it’s very dynamic and we own stocks in that area, but OneSpa does everything now … you can get a face lift to a massage on a ship. If you think about it, it’s a great place to be able to hide away a little bit too if you want to,” Rogers said. Rogers also named Norwegian Cruise Line as a “cheap” play that is currently trading at a single-digit price-to-earnings multiple. “We think it’s selling at about a 60% discount to private market value,” Rogers said. “… There might be some choppiness going forward, but it’s a really great long-term brand.” Shares of Norwegian are down roughly 33% this year as broader macroeconomic pressures hit cruise stocks. The company also missed first-quarter earnings expectations on Wednesday and said its revenue will likely be pressured this year, particularly as Americans could be hesitant to book longer cruises to Europe in the third quarter. The company still maintained its earnings guidance.
