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Causeway Capital's Top Five Positions

August 20, 2013 | About:
Monica Wolfe

Monica Wolfe

119 followers
Sarah Ketterer, the Chief Executive Officer of Causeway, kept a relatively quiet quarter, only adding four new stocks to her holdings in her American-based portfolio.Ketterer now holds 66 stocks valued at $948 million.

The following companies represent Ketterer’s largest stock holdings as of the second quarter.



Ryanair Holdings PLC (RYAAY)

Ketterer’s largest holding, by far, is in Ryanair Holdings where she owns 4,420,542 shares of the company’s stock. Her holdings in Ryanair represent 1.53% of the company’s shares outstanding and a much larger 24% of her total portfolio.

During the second quarter, Ketterer slightly increased her position in Ryanair. The guru increased her holdings 6.03% by purchasing a total of 251,375 shares. She bought these shares in the second quarter price range of $41.36 to 53.54, with an estimated average price of $46.14 per share. Since then the price per share has increased approximately 8.03%.

Ketterer’s holding history as of the second quarter:

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Ryanair Holdings PLC provides low fares airline-related services, including scheduled services, and ancillary services including car hire services, and internet and other related services to third parties, across a European route network.

Ryanair’s historical revenue and net income:

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The Peter Lynch Chart suggests that the company is currently overvalued:

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Ryanair has a market cap of $14.22 billion. Its shares are currently trading at around $49.97 with a P/E ratio of 19.80, a P/S ratio of 2.20 and a P/B ratio of 3.10. Ryanair Holdings had an annual average earnings growth of 11.7% over the past ten years.

GuruFocus rated Ryanair the business predictability rank of 4.5-star.

UnitedHealth Group (UNH)

Ketterer’s second largest holding is in UnitedHealth where she maintains 738,034 shares. Her position in UnitedHealth represents 0.07% of the company’s shares outstanding and 5.4% of her total portfolio.

She made a slight reduction of her position in UnitedHealth over the second quarter. Ketterer cut her holdings -1.15% by selling 8,600 shares. She sold these shares at an estimated average second quarter price of $62.22 per share. Since then, the price per share has increased 16.5%

Ketterer’s holding history as of the second quarter:

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The company is a health and wellness company that helps people live healthier lives and helps make health care work better through its primary subsidiary, UnitedHealthcare. UnitedHealthcare serves the health benefits needs of individuals across life's stages through three businesses.

UnitedHealth’s historical revenue and net income:

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The Peter Lynch Chart shows that UnitedHealth currently appears to be undervalued:

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UnitedHealth has a market cap of $73.67 billion. Its shares are currently trading at around $72.46 with a P/E ratio of 13.80, a P/S ratio of 0.60 and a P/B ratio of 2.30. UnitedHealth had an annual average earnings growth of 14.2% over the past ten years.

GuruFocus rated UnitedHealth the business predictability rank of 4-star.

Microsoft (MSFT)

Ketterer’s third largest position in is in Microsoft where she holds a total of 1,299,357 shares. Her position represents 0.02% of the company’s shares outstanding and 5% of her total portfolio.

During the second quarter Ketterer made a minor reduction to her position in Microsoft. The guru reduced her holdings -0.44% by selling 5,700 shares of Microsoft. She sold these shares in the second quarter price range of $28.59 to $35.67, with an estimated average earnings growth of $32.76. Since then the share price has dropped approximately -3.5%.

Ketterer’s holding history as of the second quarter:

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Microsoft develops, manufactures, licenses and supports a wide range of software products and services for many different types of computing devices.

Microsoft’s historical revenue and net income:

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The Peter Lynch Chart suggests that the company is currently undervalued:

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Microsoft has a market cap of $263.42 billion. Its shares are currently trading at around $31.62 with a P/E ratio of 12.40, a P/S ratio of 3.50 and a P/B ratio of 3.40. The company had an annual average earnings growth of 14.3% over the past ten years.

GuruFocus rated Microsoft the business predictability rank of 3.5-star.

Air Products & Chemicals (APD)

Ketterer’s fourth largest position is in Air Products & Chemicals. The guru holds 378,000 shares, representing 0.18% of the company’s shares outstanding and 3.9% of her total portfolio.

During the second quarter Ketterer reduced her position in Air Products & Chemicals by -0.13%. The guru sold a very small 500 shares at an estimated average quarterly price of $90.87 per share. The price per share has increased 12.1% since then.

Ketterer’s holding history as of the second quarter:

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The Company is a supplier of hydrogen and helium. It also provides semiconductor materials, refinery hydrogen, natural gas liquefaction, and advanced coatings and adhesives.

Air Products’ historical revenue and net income:

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Air Products and Chemicals has a market cap of $21.43 billion. Its shares are currently trading at around $102.23 with a P/E ratio of 21.90, a P/S ratio of 2.10 and a P/B ratio of 3.20. The company had an annual average earnings growth of 6.5% over the past ten years.

Boeing (BA)

Ketterer’s fifth largest position is in Boeing where the guru owns 342,300 shares of the company’s stock. His holdings represent 10.1% of the company’s shares outstanding and 3.9% of her total portfolio.

During the second quarter Ketterer cut her holdings -8.06% by selling 30,000 shares. She sold these shares at an estimated average quarterly price of $95.01. Since this buy the price per share has increased approximately 10.1%.

Ketterer’s holding history as of the second quarter:

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Boeing is engaged in the design, development, manufacture, sale and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems and services.

Boeing’s historical revenue and earnings growth:

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The Peter Lynch Chart suggests that Boeing is currently overvalued:

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Boeing has a market cap of R78.94 billion. Its shares are currently trading at around $104.63 with a P/E ratio of 19.10, a P/S ratio of 1.00 and a P/B ratio of 10.50. The company had an annual average earnings growth of 13.9% over the past ten years.

GuruFocus rated Boeing the business predictability rank of 3-star.

Check out Sarah Ketterer’s second quarter portfolio here.

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Rating: 3.0/5 (6 votes)

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