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Ariel's Bobrinskoy Says Selectivity is Key

Housing, energy and automakers are all sectors tracking the U.S. recovery higher, but for Ariel Investments’ Vice Chairman and Director of Research Charles Bobrinskoy, who oversees $7.2 billion in assets, the key is identifying the less obvious names.

For example, Bobrinskoy’s fund, which is up more than 30% over the past 12 months, is taking stock in Illinois Tool Works (ITW). He says the reason the firm likes the multinational manufacturer is because it produces products for the rebounding auto industry without the risk of being an automaker itself.

Bobrinskoy’s portfolio also includes a number of advertising and media stocks including Omnicom Group (OMC) and DirecTV (DTV). Omnicom is riding the U.S. economic recovery as more firms increasing spending on advertising, while DirecTV’s Latin American exposure is helping to boost the stock.