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Sarah Ketterer’s Causeway Capital's Top Q3 Holdings

November 22, 2013 | About:
Monica Wolfe

Monica Wolfe

133 followers
Sarah Ketterer is the CEO and Fundamental Portfolio Manager of Causeway and was the first female guru followed by GuruFocus. Ketterer is responsible for co-founding the firm in 2001 and is also responsible for firm’s fundamental and absolute returns strategies. Ketterer’s Causeway focuses its research into two different groups—fundamental research and quantitative research.

Over the past quarter Ketterer’s Causeway Capital Management Fund reported nine new stock buys bringing her total number of stocks to 69 which, as of the third quarter, were valued at $1.225 billion. The following five companies are the five largest stock positions Sarah Ketterer holds as of the close of the third quarter.

Ryanair (RYAAY)

Ketterer’s largest position is in Ryanair where she holds on to 3,657,630 shares of the company’s stock. Her holdings make up for 14.8% of her total assets managed and 1.28% of the company’s shares outstanding.

During the third quarter Ketterer cut her holdings -17.26% of her holdings by selling 762,912 shares. She sold these shares in the quarterly price range of $44.51 to $54.05, with an estimated average quarterly price of $50.63 per share. Since then the price per share has dropped approximately -11.7%

Ketterer’s historical holding history:

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Ryanair 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. The company also provides various ancillary services and engages in other activites connected with its core air passenger service.

Ryanair’s historical revenue and net income:

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The analysis on Ryanair reports that the company has shown predictable revenue and earnings growth, they have issued EUR148.5 million of debt over the past three years and its operating margin is expanding.

The top three guru shareholders of Ryanair:

1. Manning & Napier Advisors: 10,137,648 shares, representing 3.56% of the company’s shares outstanding and 2.4% of their total assets managed.

2. Sarah Ketterer: 3,657,630 shares, representing 1.28% of the company’s shares outstanding and 14.8% of her total portfolio.

3. Jim Simons: 3,220,596 shares, representing 1.13% of the company’s shares outstanding and 0.39% of his total portfolio.

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

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Ryanair Holdings has a market cap of $12.74 billion. Its shares are currently trading at around $44.74 with a P/E ratio of 16.40, a P/S ratio of 1.90 and a P/B ratio of 2.50. Ryanair had an annual average growth of 10.20% over the past ten years.

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

UnitedHealth Group (UNH)

The guru’s second largest holding is in UnitedHealth Group where she holds on to 941,734 shares of the company’s stock. Her position represents 5.7% of her total portfolio and 0.09% of UnitedHealth’s shares outstanding.

During the third quarter Ketterer upped her position in UnitedHealth 27.6% by purchasing 203,700 shares of the company’s stock. She bought these shares in the quarterly price range of $66.23 to $75.18, with an estimated average quarterly price of $71.57 per share. Since then the price per share has increased approximately 3%.

Ketterer’s historical holding history:

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UnitedHealth is a health and well-being company that helps people live healthier lives and help make health care work better. The company is helping individual's access quality care at an affordable cost; simplifying health care administration and delivery; strengthening the physician/patient relationship; and empowering physicians, health care professionals, consumers, and employers in the health system with actionable data to make better, more informed decisions.

UnitedHealth’s historical revenue and net income:

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The analysis on UnitedHealth reports that the company’s price is nearing a 10-year high, its dividend yield is at a 10-year high and it has shown predictable revenue and earnings growth.

Top guru shareholders of UnitedHealth:

1. Vanguard Health Care: 19,001,100 shares, representing 1.87% of the company’s shares out.

2. Chris Davis: 14,880,244 shares, representing 1.46% of the company’s shares outstanding.

3. Meryl Witmer: 11,243,651 shares, representing 1.11% of the company’s shares outstanding.

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

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UnitedHealth has a market cap of $73.98 billion. Its shares are currently trading at around $73.48 with a P/E ratio of 13.80, a P/S ratio of 0.60 and a P/B ratio of 2.30. The company had an annual average earnings growth of 19.00%over the past ten years.

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

Microsoft Corporation (MSFT)

Ketterer’s third largest holding goes to Microsoft where she maintains 2,037,757 shares of the company’s stock. Her position represents 5.7% of her total portfolio and 0.02% of the company’s shares outstanding.

During the third quarter Ketterer increased her holdings 56.83% by purchasing a total of 738,400 shares. The guru bought these shares in the quarterly price range of $31.15 to $36.27, with an estimated average quarterly price of $32.90. Since then the price per share is up about 14.1%.

Ketterer’s historical holding history:

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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 analysis on Microsoft reports that the company’s price is near a 10-year high, its gross and operating margins have been in a 5-year decline and its interest coverage is comfortable, meaning they have enough cash to cover all debt. The company has also shown predictable revenue and earnings growth.

Top guru shareholders of MSFT:

1. Dodge & Cox: 86,524,349 shares, representing 1.04% of the company’s shares outstanding.

2. Jeff Ubben: 66,865,530 shares, representing 0.8% of the company’s shares outstanding.

3. PRIMECAP Management: 62,747,091 shares, representing 0.75% of the company’s shares outstanding.

The Peter Lynch chart shows that Microsoft currently appears to be undervalued:

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Microsoft has a market cap of $313.47 billion. Its shares are currently trading at around $37.55 with a P/E ratio of 14.00, a P/S ratio of 3.90 and a P/B ratio of 3.80. The company has a dividend yield of 2.60%. The company has also seen average earnings growth of 12.5% over the past ten years.

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

Boeing Co (BA)

The guru’s fourth largest position is in Boeing where she holds on to 490,422 shares of the company’s stock. Her holdings make up for 4.9% of her total portfolio and 0.07% of the company’s shares outstanding.

During the third quarter Ketterer upped her holdings 43.27% by purchasing 148,122 shares of Boeing stock. She bought these shares in the quarterly price range of $101.47 to $119.38, with an estimated average quarterly price of $107.71 per share. Since then the price per share has increased an additional 26.2%.

Ketterer’s holding history as of the third 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. It operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network and Space Systems, Global Services and Support and Boeing Capital Corporation.

Boeing’s historical revenue and net income:

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The analysis on Boeing reports that the company’s dividend yield is near a 5-year low, its price is sitting near its 10-year high, it has shown predictable revenue and earnings growth and its operating margin is expanding.

The top guru shareholders of Boeing:

1. Andreas Halvorsen: 7,995,460 shares, representing 1.06% of the company’s shares outstanding and 4.6% of his total portfolio.

2. PRIMECAP Management: 3,659,591 shares, representing 0.49% of the company’s shares outstanding and 0.54% of their total portfolio.

3. Brian Rogers: 2,676,900 shares, representing 0.35% of the company’s shares outstanding and 1.2% of his total portfolio.

The Peter Lynch Chart suggests that Boeing is currently overvalued:

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Boeing has a market cap of $102.21 billion. Its shares are currently trading at around $136.01 with a P/E ratio of 23.90, a P/S ratio of 1.20 and a P/B ratio of 11.20. The company had an annual average earnings growth of 12.20% over the past ten years.

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

Oracle Corporation (ORCL)

Ketterer’s fifth largest holding is in Oracle Corporation where she owns 1,654,800 shares of the company’s stock. Her holdings in Oracle represent 4.6% of her portfolio as well as 0.04% of the company’s shares outstanding.

During the third quarter Ketterer upped her holdings 63% by purchasing a total of 639,600 shares. She bought these shares in the third quarter price range of $30.10 to $34.05, with an estimated average quarterly price of $32.44 per share. Since then the price per share has increased an additional 7.4%.

Sarah Ketterer’s holding history as of the third quarter:

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Oracle provides technologies of cloud computing, including database and middleware as well as web-based applications, virtualization, clustering and systems management. It provides cloud services as well as software and hardware products to other cloud service providers, both public and private.

Oracle’s historical revenue and net income:

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The analysis on Oracle reports that the company’s revenue has slowed down over the past year, its price is near a 10-year high, its operating margin is expanding and its dividend yield is also near a 5-year high.

The top guru shareholders of Oracle:

1. Jeremy Grantham: 49,441,015 shares, representing 1.07% of the company’s shares outstanding and 4.3% his total portfolio.

2. Meryl Witmer: 40,293,015 shares, representing 0.87% of the company’s shares outstanding and 6.5% of her total portfolio.

3. Jean-Marie Eveillard: 27,367,792 shares, representing 0.59% of the company’s shares outstanding and 2.6% of his total portfolio.

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

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Oracle Corporation has a market cap of $158.69 billion. Its shares are currently trading at around $34.82 with a P/E ratio of 15.10, a P/S ratio of 4.50 and a P/B ratio of 3.70. The company had an annual average earnings growth of 19.00% over the past ten years.

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

Check out Sarah Ketterer’s complete third quarter portfolio here.

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Rating: 2.8/5 (6 votes)

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