Causeway Capital Management co-founder Sarah Ketterer (Trades, Portfolio) disclosed she acquired positions in five stocks in the third quarter.
Managing a portfolio of 88 stocks, Ketterer focuses on global equities. The technology sector composes the largest portion of the portfolio at 26.8%.
Ketterer established positions in Viacom Inc. (VIAB, Financial), Canadian Imperial Bank of Commerce (CM, Financial), Momo Inc. (MOMO, Financial), Micro Focus International PLC (MFGP, Financial) and China Lodging Group Ltd. (HTHT, Financial).
Viacom
Ketterer purchased a 3.8 million-share stake in Viacom for an average price of $30.94 per share, giving it 1.2% portfolio space.
The New York-based media company has a market cap of $9.6 billion; its shares were trading around $23.16 on Thursday with a price-earnings (P/E) ratio of 7.97, a price-book (P/B) ratio of 2.16 and a price-sales (P/S) ratio of 0.88.
The Peter Lynch chart below shows the stock is trading below its fair value.
GuruFocus ranked Viacom’s financial strength 4 of 10 and its profitability and growth 7 of 10. The company’s trailing dividend yield is 3.27% and its forward dividend yield is 3.26%. The dividend payout ratio is 22%.
With this transaction, Ketterer became Viacom’s largest shareholder among the gurus with 0.95% of outstanding shares. Ray Dalio (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Caxton Associates (Trades, Portfolio) also established positions in the third quarter.
Canadian Imperial Bank
The investor bought 469,210 shares for an average price of $85.52 per share, expanding the portfolio 0.49%.
The Canadian bank has a market cap of $39.04 billion; its shares were trading around $88.96 on Thursday with a P/E ratio of 10.34, a P/B ratio of 1.75 and a P/S ratio of 2.92.
According to the Peter Lynch chart below, the stock is trading below its fair value.
GuruFocus ranked Canadian Imperial’s financial strength 5 of 10 and its profitability and growth 5 of 10. The company’s trailing dividend yield is 4.42% and its forward dividend yield is 4.57%. The payout ratio is 45%.
With 0.31% of outstanding shares, Jim Simons (Trades, Portfolio) is the company’s largest guru shareholder. Other top guru shareholders include Jeremy Grantham (Trades, Portfolio), Dalio, John Buckingham (Trades, Portfolio), David Dreman (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio).
Momo
Ketterer invested in 523,300 shares of Momo for an average price of $39.81 per share, impacting the portfolio by 0.18%.
The Chinese social network platform has a market cap of $7.99 billion; its shares were trading around $32.24 on Thursday with a P/E ratio of 24.61, a P/B ratio of 7.94 and a P/S ratio of 6.82.
Based on the Peter Lynch chart below, the stock appears to be trading above its fair value.
GuruFocus ranked Momo’s financial strength 9 of 10 and its profitability and growth 4 of 10. The company does not pay a dividend.
Of the gurus invested in Momo, Simons has the largest position with 1.58% of outstanding shares. Julian Robertson (Trades, Portfolio), Grantham and Caxton also established positions in the third quarter.
Micro Focus
Ketterer purchased 315,504 shares of Micro Focus for an average price of $30.87 per share. The trade had an impact of 0.11% on the portfolio.
The U.K.-based software company, which completed a merger with Hewlett Packard’s (HPE) software business in September, has a market cap of $15.42 billion; its shares were trading around $35.38 on Thursday with a P/E ratio of 46.43, a P/B ratio of 4.49 and a P/S ratio of 5.42.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked Micro Focus’ financial strength 5 of 10 and its profitability and growth 8 of 10. The company does not pay a dividend.
Among the gurus invested in Micro Focus, Dodge & Cox has the largest holding with 8.42% of outstanding shares. Other top guru shareholders include PRIMECAP Management (Trades, Portfolio), Hotchkis & Wiley, Richard Pzena (Trades, Portfolio) and Alan Fournier (Trades, Portfolio).
China Lodging Group
The guru bought 34,900 shares of China Lodging for an average price of $102.95 per share, giving it 0.05% portfolio space.
The Chinese hotel operator has a market cap of $8.97 billion; its shares were trading around $126.32 on Thursday with a P/E ratio of 64.15, a P/B ratio of 9.92 and a P/S ratio of 8.80.
Based on the Peter Lynch chart below, the stock appears to be trading above its fair value.
GuruFocus ranked China Lodging’s financial strength 7 of 10 and its profitability and growth 7 of 10. The company’s forward dividend yield is 0.52%.
With 1.02% of outstanding shares, Simons is the company’s largest guru shareholder. Grantham, Ken Fisher (Trades, Portfolio) and Columbia Wanger (Trades, Portfolio) also own the stock.
Ketterer also increased other holdings during the quarter, including Canadian Pacific Railway Inc. (CP, Financial), Sabre Corp. (SABR, Financial), Alibaba Group Holding Ltd. (BABA, Financial), Manulife Financial Corp. (MFC, Financial) and Advance Auto Parts Inc. (AAP, Financial), among others.
Disclosure: I do not own any stocks mentioned.
