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Causeway International’s Top Five Holdings

Monica Wolfe

Monica Wolfe

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Sarah Ketterer is the CEO and co-founder of Causeway. She is the portfolio manager for the firm’s fundamental and absolute returns strategies, and is responsible for investment research across all sectors.

Ketterer along with Conor Muldoon, Jonathan Eng, Kevin Durkin, Harry Hartford and James Doyle manage the Causeway International Value Fund. According to their website, the International Value Fund is constructed from an equity universe spanning developed international markets.



Causeway International’s Top Five Positions as of the second quarter:

Reed Elsevier NV (XAMS:REN)

Causeway International Value’s top holding is in Reed Elsevier. The fund holds on to 5,255,270 shares, representing 3.5% of its total portfolio.

During the second quarter the fund increased its position in Reed Elsevier by 18.85%. The portfolio managers bought a total of 833,487 shares in the second quarter price range of €12.26 to €13.43, with an estimated average price of €12.78. Since then the price per share has increased approximately 6.6%.

Causeway’s holding history as of the second quarter:



Reed Elsevier NV operates as a publisher and an information provider. Its activities include science and medical, legal and business publishing.

Reed Elsevier’s historical revenue and net income:



Reed Elsevier has a market cap of €9.27 billion. Its shares are currently trading at around €13.62 with a P/E ratio of 16.08.

Akzo Nobel NV (XAMS:AKZA)

Causeway’s second largest position is in Akzo Nobel where the fund holds 1,469,131 shares. Their position in the company represents 0.61% of the company’s shares outstanding and 3.4% of its total portfolio.

During the second quarter the fund upped their stake in Akzo Nobel by 38.05%. The fund bought a total of 404,891 shares in the second quarter price range of €42.65 to €50.03, with an estimated average price of €47.22. The share price has since then dropped approximately -3.2%.

Causeway’s holding history as of the second quarter:



Akzo Nobel is one of the world's leading companies in selected areas of healthcare products, coatings, chemical, and fibers. The company also makes paints, stains, synthetic resins, ethical and nonprescription drugs, hospital related supplies and several other products.

Akzo Nobel’s historical revenue and net income:



Akzo Nobel has a market cap of €11.07 billion. Its shares are currently trading at around €45.73 with a P/E ratio of 29.94, a P/S ratio of 0.72 and a P/B ratio of 1.74.

KDDI Corp. (TSE:9433)

Causeway’s third largest position is in KDDI Corp. The fund maintains 1,571,800 shares of KDDI, representing 0.18% of the company’s shares outstanding and 3.3% of its total portfolio.

The international fund made no changes to their position in KDDI over the duration of the second quarter.

Causeway’s holding history as of the second quarter:



KDDI Corp is a Japanese telecommunications operator. The company provides mobile cellular services, ISP network and solution services and Fiber to the Home (FTTH) services.

KDDI’s historical revenue and net income:



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



KDDI has a market cap of ¥3642.48 billion. Its shares are currently trading at around ¥4765.00 with a P/E ratio of 28.25, a P/S ratio of 1.92 and a P/B ratio of 1.72. The company had an annual average earnings growth of 1.9% over the past ten years.

Toyota Motor Corp. (TSE:7203)

Causeway’s fourth largest position is in Toyota Motor Corp. The fund holds on to 1,314,000 shares of Toyota, representing 0.04% of the company’s shares outstanding and 3.2% of their total portfolio.

Causeway has maintained 1.314 million shares of Toyota Motor since 2012Q4, and has seen an average gain of 75% from their initial investment in 2010.

Causeway’s holding history as of the second quarter:



The company primarily conducts business in the automotive industry. Toyota also conducts business in finance and other industries.

Toyota’s historical revenue and net income:



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



Toyota Motor has a market cap of ¥19067.9 billion. Its shares are currently trading at around ¥6020 with a P/E ratio of 15.46, a P/S ratio of 0.84 and a P/B ratio of 1.53. The company had an annual average earnings growth of 17.3% over the past five years.

Novartis AG (XSWX:NOVN)

Causeway’s fifth largest position is in Novartis where the fund holds on to 995,866 shares of the company’s stock. Causeway’s position represents 0.04% of the company’s shares outstanding and 2.9% of their total portfolio.

During the second quarter Causeway increased their position in Novartis by 18.44%. The fund purchased 155,016 shares of Novartis in the second quarter price range of CHF63.25 to CHF73.65, with an estimated average price of CHF68.39. The price has since then increased about 0.2%.

Causeway’s holding history as of the second quarter:



The company provides healthcare solutions that address the evolving needs of patients and societies worldwide with a portfolio that includes innovative medicines, preventive vaccines and diagnostic tools, generic pharmaceuticals and consumer health products.

Novartis’ historical revenue and net income:



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



Novartis has a market cap of CHF165.54 billion. Its shares are currently trading at around CHF67.65 with a P/E ratio of 19.01, a P/S ratio of 3.12 and a P/B ratio of 2.63. The company had an annual average earnings growth of 7.7% over the past ten years.

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

Check out Causeway’s international portfolio here. Also check out Sarah Ketterer’s second quarter portfolio here.

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Rating: 3.0/5 (5 votes)

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