Sarah Ketterer (Trades, Portfolio)’s Causeway International Value (Trades, Portfolio) Fund released its third-quarter portfolio this week, disclosing it established three new positions and divested two others.
The fund invests primarily in international stocks to achieve long-term growth of capital and income. Managing a portfolio of 56 stocks, Causeway is heavily invested in the industrials and financial services sectors. In 2016, the fund returned 0.17%, underperforming the S&P 500’s return of 11.96%.
The fund established holdings in Takeda Pharmaceutical Co. Ltd. (TSE:4502, Financial), Micro Focus International PLC (LSE:MCRO, Financial) and Canadian Imperial Bank of Commerce (TSX:CM, Financial).
Takeda Pharmaceutical
The fund invested in 1.8 million shares of Takeda for an average price of 5,910.83 yen ($52.02) per share, giving it 1.28% portfolio space.
The Japanese pharmaceutical company has a market cap of 4.83 trillion yen; its shares were trading around 6,180 yen on Monday with a price-earnings (P/E) ratio of 29.73, a price-book (P/B) ratio of 2.31 and a price-sales (P/S) ratio of 2.76.
The Peter Lynch chart below indicates the stock is trading above its fair value.
GuruFocus ranked Takeda’s financial strength 6 of 10 and its profitability and growth 7 of 10. The company’s trailing dividend yield and forward dividend yield are both 2.91%. The dividend payout ratio is 87%.
The company’s largest guru shareholder is the Vanguard Health Care Fund (Trades, Portfolio) with 1.26% of outstanding shares. Causeway holds 0.24%.
Micro Focus
Causeway purchased 1.2 million shares of Micro Focus for an average price of 23.81 pounds ($31.76) per share, expanding the portfolio 0.49%.
The U.K.-based software company has a market cap of 10.6 billion pounds; its shares were trading around 24.34 pounds on Monday with a P/E ratio of 41.98, a P/B ratio of 4.05 and a P/S ratio of 4.92.
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’s trailing dividend yield is 3.05% and its forward dividend yield is 4.01%. The payout ratio is 117%.
With this transaction, the fund became Micro Focus’ largest guru shareholder with 0.28% of outstanding shares. The Invesco European Growth Fund (Trades, Portfolio) also owns the stock.
Canadian Imperial Bank of Commerce
The fund bought 67,667 shares of Canadian Imperial Bank for an average price of 107.18 Canadian dollars ($83.20) per share, impacting the portfolio 0.07%.
The Canadian bank has a market cap of CA$51.75 billion; its shares were trading around CA$119.78 on Tuesday with a P/E ratio of 10.43, a P/B ratio of 1.79 and a P/S ratio of 2.95.
Based on the Peter Lynch chart below, the stock appears to be trading below its fair value.
GuruFocus ranked the bank’s financial strength 5 of 10 and its profitability and growth 5 of 10. The company’s trailing dividend yield is 4.24% and its forward dividend yield is 4.34%. The payout ratio is 45%.
With 0.21% of outstanding shares, the Leith Wheeler Canadian Equity (Trades, Portfolio) Fund has the largest holding among the gurus. The Signature Select Canadian Fund (Trades, Portfolio) also has a position.
Causeway exited Nikon Corp. (TSE:7731, Financial) and Sanofi SA (XPAR:SAN, Financial) during the quarter.
Nikon
The fund sold its remaining 2.7 million shares of Nikon for an average price of 16.72 yen per share, impacting the portfolio -0.65%. GuruFocus estimates the fund has lost 36% on the investment since the fourth quarter of 2013.
The Japanese camera manufacturer has a market cap of 923.55 billion yen; its shares were trading around 2,331 yen on Monday with a P/B ratio of 10.62 and a P/S ratio of 1.27.
The Peter Lynch chart below show the stock is trading above its fair value.
GuruFocus ranked Nikon’s financial strength 6 of 10 and its profitability and growth 4 of 10. The company’s trailing dividend yield is 0.77% and its forward dividend yield is 0.94%.
No other gurus are invested in the stock.
Sanofi
Causeway sold its remaining 177,138 shares for an average price of 96.31 euros ($112.93) per share. The trade had an impact of -0.25% on the portfolio. GuruFocus estimates the fund has gained 19% on the investment since the second quarter of 2011.
The French drugmaker has a market cap of 92.57 billion euros; its shares were trading around 73.58 euros on Monday with a P/E ratio of 10.16, a P/B ratio of 1.62 and a P/S ratio of 2.74.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked Sanofi’s financial strength 6 of 10 and its profitability and growth 7 of 10. The company’s trailing dividend yield and forward dividend yield are both 4.02%. The payout ratio is 80%.
With 0.07% of outstanding shares, David Herro (Trades, Portfolio) is Sanofi’s largest guru shareholder.
Disclosure: I do not own any stocks mentioned.
