Ariel Fund's Sauer sees value in asset managers, retail

Shares of asset managers, and consumer, retail and some media companies offer good value opportunities in a volatile and beaten down market, a fund manager said.

Matthew Sauer, portfolio manager of the mid-cap focused Ariel Appreciation Fund, which has about $1.6 billion in assets, likes companies such as Janus Capital Group (nyse: JNS - news - people ) and Clorox as he feels that they are trading well below their fair value.

'We can't understate the sea change that's happened in financial markets over the last few weeks. It will have implications for many years to come but it has given us a chance to look around,' Sauer told Reuters from Chicago.

Within financials, the fund manager is particularly enthusiastic about asset managers.

The fund recently added to its holdings in asset management firm Janus Capital Group, and Sauer believes the stock offers an upside potential of as much as 40 percent from current levels before it is fairly valued.

Janus Capital, now Ariel Appreciation's second-largest holding, was trading at $22.28 in afternoon trade on the New York Stock Exchange.

Sauer also likes T Rowe Price as he believes it can take market share, has a strong franchise and also derives stability from its exposure to retirement funds in the United States.

'I don't think there has been any headline in the last six months that would change that for me,' Sauer said.

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