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Guru Sarah Ketterer's Top Five Positions as of the First Quarter

May 14, 2014 | 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 the 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 six new stock buys, bringing her total number of stocks to 74 which, as of the first quarter, were valued at $2.223 billion.

You can read her interview with GuruFocus here!

The following five companies are the five largest stock positions Sarah Ketterer holds as of the close of the first quarter.

UnitedHealth Group (UNH)

The guru’s largest holding is in UnitedHealth Group where she holds on to 1,385,240 shares of the company’s stock. Her position represents 5.4% of her total portfolio and 0.14% of UnitedHealth’s shares outstanding.

During the first quarter Ketterer upped her position in UnitedHealth 12.27% by purchasing 151,422 shares of the company’s stock. She bought these shares near the estimated average quarterly price of $75.27 per share. Since then the price per share has increased approximately 2.5%.

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.

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

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UnitedHealth has a market cap of $75.62 billion. Its shares are currently trading at around $77.17 with a P/E ratio of 14.10, a P/S ratio of 0.60 and a P/B ratio of 2.30. The company had an annual average earnings growth of 12.50%over the past ten years.

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

Ryanair Holdings (RYAAY)

Ketterer’s second largest position is in Ryanair where she holds on to 2,041,514 shares of the company’s stock. Her holdings make up for 5.4% of her total assets managed and 0.72% of the company’s shares outstanding.

During the first quarter Ketterer cut her holdings -0.54% of her holdings by selling 11,132 shares. She sold these shares near the estimated average quarterly price of $53.32 per share. Since then the price per share has decreased approximately -2.4%

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 Peter Lynch Chart suggests that the company is currently overvalued:

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Ryanair Holdings has a market cap of $14.38 billion. Its shares are currently trading at around $52.02 with a P/E ratio of 18.70, a P/S ratio of 2.20 and a P/B ratio of 2.80. Ryanair had an annual average growth of 10.80% over the past ten years.

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

Microsoft (MSFT)

Ketterer’s third largest holding goes to Microsoft where she maintains 2,717,633 shares of the company’s stock. Her position represents 5.3% of her total portfolio and 0.03% of the company’s shares outstanding.

During the first quarter Ketterer increased her holdings 28.17% by purchasing a total of 597,281 shares. The guru bought these shares near the estimated average quarterly price of $37.54. Since then the price per share is up about 7.2%.

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.

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

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Microsoft has a market cap of $333.89 billion. Its shares are currently trading at around $40.42 with a P/E ratio of 15.00, a P/S ratio of 4.10 and a P/B ratio of 3.80. The company has a dividend yield of 2.50%. The company has also seen average earnings growth of 14.80% over the past ten years.

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

Citigroup (C)

The guru’s fourth largest position is in Citigroup where she maintains 2,223,004 shares of the company’s stock. This position makes up for 5% of her total holdings as well as 0.07% of the company’s shares outstanding.

During the past quarter Ketterer upped her stake 51.47% by purchasing 755,404 shares of the company’s stock. She purchased these shares near the average quarterly price of $49.81, and since then the price per share has dropped approximately -5.6%.

Ketterer’s historical holding history:

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Citigroup is a global financial services holding company, whose businesses provide consumers, corporations, governments and institutions with a range of financial products and services, including consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management.

Citigroup’s historical revenue and net income:

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The analysis on Citigroup reports that the company’s revenue per share has been in decline over the past five years and that its P/E and P/B ratios are trading at 1-year lows.

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

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Citigroup has a market cap of $142.84 billion. Its shares are currently trading at around $47.02 with a P/E ratio of 10.60, a P/S ratio of 1.90 and a P/B ratio of 0.70.

Oracle (ORCL)

Ketterer’s fifth largest holding is in Oracle Corporation where she owns 2,558,189 shares of the company’s stock. Her holdings in Oracle represent 4.9% of her portfolio as well as 0.06% of the company’s shares outstanding.

During the first quarter Ketterer upped her holdings 17.36% by purchasing a total of 378,389 shares. She bought these shares in the first quarter price range of $35.84 to $40.91, with an estimated average quarterly price of $38.06 per share. Since then the price per share has increased an additional 9.9%.

Sarah Ketterer’s holding history as of the first 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 Peter Lynch Chart suggests that the company is currently overvalued:

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Oracle Corporation has a market cap of $186.52 billion. Its shares are currently trading at around $41.83 with a P/E ratio of 17.50, a P/S ratio of 5.20 and a P/B ratio of 4.20. The company had an annual average earnings growth of 19.40% over the past ten years.

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

Check out Sarah Ketterer’s full first quarter portfolio holdings here.

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