Sarah Ketterer

Sarah Ketterer

Last Update: 08-15-2016

Number of Stocks: 73
Number of New Stocks: 6

Total Value: $4,697 Mil
Q/Q Turnover: 23%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Sarah Ketterer' s Profile & Performance

Profile

Ms. Ketterer is the Chief Executive Officer of Causeway since June 2001. Her firm manages more than $15 billion as of May, 2008. She is responsible for investment research in global financials and healthcare. Prior Experience From November 1996 to June 2001, Ms. Ketterer worked for the Hotchkis and Wiley division of Merrill Lynch Investment Managers ("HW-MLIM"). At HW-MLIM, she was a Managing Director and co-head of the firm's HW-MLIM International and Global Value team. Education Ms. Ketterer has a BA in Economics and Political Science from Stanford University and an MBA from the Amos Tuck School, Dartmouth College.

Web Page:http://www.causewayfunds.com/fundhome.aspx

Investing Philosophy

Sarah Ketterer focuses on global equities: International , global, and emerging market. She and her team begin with a screen of both large and mid-sized companies in the developed international markets. Their screens are applied to approximately 3,400 companies and use quantitative and value-oriented methods to find prospective stocks that meet their criteria for further analysis. Each stock also receives a "risk score" based on the additional volatility/risk it adds to the portfolio. Their final portfolio is built from those stocks with the highest expected risk-adjusted return. It will typically have 60-80 stocks that have a lower price/earnings ratio and higher dividend yield than the market.

Total Holding History

Performance of International Value Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
201011.9815.06-3.1
200932.0126.465.5
2008-41.95-37-5.0
3-Year Cumulative-14.2 (-5%/year)-8.3 (-2.9%/year)-5.9 (-2.1%/year)
20077.875.492.4
200626.0715.7910.3
5-Year Cumulative16.7 (3.1%/year)12 (2.3%/year)4.7 (0.8%/year)
20058.134.913.2
200426.5910.8815.7
200345.8628.6817.2
2002-10.86-22.111.2

Top Ranked Articles

Value Investing Makes a Comeback to Trounce Growth After a decade, undervalued stocks are beating the returns of growth stocks
After eating the dust of growth stocks for a decade, the value investing strategy has come out ahead this year. Read more...
Gurus Find Hot Information Technology Stocks Greenblatt reveals his winners
Throughout the first quarter, many gurus invested some of their capital in technology stocks, suggesting that the IT sector presents good investment opportunities in the upcoming months. Two of these stocks, Infosys Ltd. (NYSE:INFY) and NetScout Systems Inc. (NASDAQ:NTCT), have been bought and held by five gurus in the past three months, according to the Consensus Picks of Gurus screener. Read more...
Sarah Ketterer Invests in Allstate Guru makes purchase while others are selling
In the fourth quarter, Sarah Ketterer purchased 1,541,690 shares of AllState Corp. (NYSE:ALL), a holding that some successful gurus had been reducing or selling from their portfolios. Read more...
Sarah Ketterer Takes 3 Positions in 2nd Quarter Guru reports quarterly portfolio
Sarah Ketterer (Trades, Portfolio), founder and CEO of Causeway Capital Management LLC, creates long-term capital growth for her shareholders through value-oriented investing. As discussed in the fund’s prospectus, Ketterer prefers stocks that have low valuations and good financial strength. During the second quarter, the fund invested in three new companies, including major Chinese online media company Baidu Inc. (NASDAQ:BIDU). Read more...
Sarah Ketterer Sells Stake in Pennsylvania Utility Company Guru acquires stakes in Allstate, Advance Auto Parts, American Express
Sarah Ketterer (Trades, Portfolio), CEO of Causeway Capital Management, bought five new stakes in the fourth quarter, but her top three transactions were divestitures. Read more...
» More Sarah Ketterer Articles

Commentaries and Stories

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Sarah Ketterer Adds to SK Telecom South Korea's largest telecommunications company has big goals for the future Sarah Ketterer - Sarah Ketterer Adds To SK Telecom
Sarah Ketterer (Trades, Portfolio), is a contrarian value investor and co-founder of the Causeway International Value (Trades, Portfolio) Fund. During the second quarter, Ketterer added 95,847 shares of SK Telecom (XKRX:017670) for an average price of 210997 South Korean won ($189.1) per share. The trade had a 0.33% impact on Ketterer’s portfolio. She now owns 777,608 shares of the company. More...

KETTERER, CAUSEWAY, BUY, ASIA


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Causeway International Value Takes 3 in 2nd Quarter Mutual fund reports quarterly portfolio Sarah Ketterer,Causeway International Value - Causeway International Value Takes 3 In 2nd Quarter
Sarah Ketterer (Trades, Portfolio), CEO and chief portfolio manager of Causeway Capital, creates shareholder value through her top two mutual funds: Causeway Global Value Fund and Causeway International Value (Trades, Portfolio) Fund. A previous article discussed Ketterer’s recent investments in the Global Value Fund. More...

CAUSEWAY INTERNATIONAL VALUE, SARAH KETTERER


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Causeway Commentary - Undervaluation and 'Self-Help': A Powerful Combination 'Clearly, our clients cannot wait for policy nirvana. Global equities need to deliver expected return in the near term' Sarah Ketterer - Causeway Commentary - Undervaluation And 'Self-Help': A Powerful Combination
From Jamie Doyle, portfolio manager at Sarah Ketterer (Trades, Portfolio)'s Causeway Capital More...

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Sarah Ketterer Takes 3 Positions in 2nd Quarter Guru reports quarterly portfolio Sarah Ketterer - Sarah Ketterer Takes 3 Positions In 2nd Quarter
Sarah Ketterer (Trades, Portfolio), founder and CEO of Causeway Capital Management LLC, creates long-term capital growth for her shareholders through value-oriented investing. As discussed in the fund’s prospectus, Ketterer prefers stocks that have low valuations and good financial strength. During the second quarter, the fund invested in three new companies, including major Chinese online media company Baidu Inc. (NASDAQ:BIDU). More...

SARAH KETTERER, BUYS, PORTFOLIO


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Value Investing Makes a Comeback to Trounce Growth After a decade, undervalued stocks are beating the returns of growth stocks Sarah Ketterer - Value Investing Makes A Comeback To Trounce Growth
After eating the dust of growth stocks for a decade, the value investing strategy has come out ahead this year. More...

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Sarah Ketterer's Causeway Funds Commentary: The Price of Popularity Value looking more attractive in international markets than U.S. Sarah Ketterer - Sarah Ketterer's Causeway Funds Commentary: The Price Of Popularity
Successful value managers are accustomed to taking unpopular positions. Their best investments frequently begin with unloved and underappreciated stocks that may face short-term challenges, either perceived or real. Over time, the issues are surmounted and the market’s discount fades. By the time those stocks become more universally embraced, it is probably time to sell. But sometimes entire regions gain or lose popularity. At Causeway, we approach the developed world as bottom-up analysts. Top-down considerations play a role in our investment process, but only insofar as they affect a specific company: How will macroeconomic conditions impact sales and profitability of an individual stock in the foreseeable future? After incorporating various scenarios and valuation methodologies, is this stock still undervalued? And based upon the answers to these types of questions, we may be drawn to or away from geographies that exhibit more or fewer attractive value opportunities. Such has been the case for the past twelve months. Even before the Brexit vote on June 23, we witnessed a significant divergence in the relative performance of value stocks in the United States versus value stocks within Europe and Japan, the largest constituents of the MSCI EAFE Index (“EAFE Index”). In the US, value stocks have generally “re-rated” upward while growth stocks “de-rated” downward. However, in the EAFE Index, value stocks have struggled and are trading at a much larger (and widening) discount to growth stocks. Exhibit 1 reveals that from a forward price-to-earnings (“P/E”) perspective, as of June 30, 2016, growth stocks trade at an 18% premium to value stocks in the US, but growth stocks trade at a 47% premium to value stocks across the EAFE Index Universe. With a pure bottom-up approach to developed markets, we will naturally “follow” value to geographies in which it is most attractive. After the dramatic performance divergence in the past year, undervaluation is now much more prevalent in Europe and Japan than in the US. The dark green line in Exhibit 2 plots the valuation premium of the MSCI USA Value Index (“US Value Index”) relative to the MSCI EAFE Value Index (“EAFE Value Index”) over time. As of the end of June 2016, this premium stood at 35%. In the same chart, the blue line plots the active underweight of the US (versus the MSCI World Index) within a representative account using Causeway’s Global Value Equity strategy. A high correlation of 0.56 between the two lines demonstrates that, the more richly valued the US market, the lower our exposure. We actively seek to fill the portfolio with the best absolute value opportunities wherever they arise, and in the current environment, we are finding more attractive valuations outside of the US. Previous points in time when the US valuation premium exceeded 20% were quickly followed by reversions to premiums much closer to the long-term average of 12% (Note: Inception of the MSCI forward P/E data series is 2003). In terms of forward P/E, the US Value Index trades at the highest premium to the EAFE Value Index in recent history, even after removing sector composition effects. What about differences in sector composition? Relative to the EAFE Value Index, the US Value Index has more weight in Information Technology and Consumer Staples, while it has less weight in Financials. If we apply the sector weights of the MSCI World Index to both the US Value Index and EAFE Value Index, we find that composition explains only part of the premium. The yellow diamond in the chart above represents this “sector neutral” premium. At 25%, it also sits at an all-time high (matched once before in December 2003) and compares to an average of 7% since 2003. We believe that this sector-neutral premium may likely be even closer to zero over a longer period of history. For those curious about which sectors trade with the largest valuation disconnect, Exhibit 3 plots the forward P/E multiple premium for each sector in the US Value index relative to the EAFE Value Index. The current premium is displayed relative to the premium as of June 30, 2015 and the long-term average since 2003. In 8 out of the 10 sectors, this premium has increased from June 2015. Energy stands out from the others and is largely explained by the high proportion of Exploration & Production (“E&P”) companies in the US Energy sector and the larger presence of upstream activities within the largest stocks (Exxon Mobil and Chevron). Earnings for these stocks have collapsed in the past couple of years leading to much higher P/E multiples. Aside from the energy sector, the largest regional valuation premiums currently reside in the Industrials, Consumer Discretionary, Utilities, and Financials sectors. If sector composition does not explain all of the current valuation differential between the US Value and EAFE Value Indices, then what does? Most arguments gravitate around perceived differences in stability, growth potential or returns on equity. Investors may deem the US to be a “safer” place to invest to avoid any “tail” risks in Europe or Japan. A gap in the expected earnings growth rates may also explain part of the differential. According to MSCI, the long-term earnings growth (LTG) estimate for stocks in the US Value Index was 8.0% as of June 30, 2016 while the same estimate for stocks in the EAFE Value Index was 5.1%. Finally, the trailing 12-month return on equity (ROE) for stocks in the US Value Index was 9.9% compared to 6.8% for stocks in the EAFE Value Index. Despite the allure of these explanations, however, regression analysis fails to uncover consistent and statistically significant relationships among these variables historically. While some differential may be appropriate, active managers have a chance to prove their worth when the market indiscriminately becomes excessively optimistic or pessimistic about a geographic region without considering the unique prospects for individual companies. Causeway seeks out stocks that we believe have been unfairly penalized by market reaction and that deserve to trade at higher valuations, even after discounting their growth, earnings, and risk profiles. Stocks that ultimately make it through our in-depth investment process represent the investments we believe have the highest risk-adjusted return potential. Currently, we believe the historically wide discount assigned to non-US international markets is not supported by fundamentals, and provides a compelling opportunity for clients in our value strategies. Solely for the use of institutional investors and professional advisers. This presentation expresses the authors’ views as of July 29, 2016 and should not be relied on as research or investment advice regarding any investment. These views and any portfolio characteristics are subject to change. There is no guarantee that any forecasts made will come to pass. “Correlation” ranges between -1 and +1. Perfect positive correlation (+1) implies that as the index moves up or down, the strategy will move in the same direction. Perfect negative correlation (-1) means the strategy will move in the opposite direction. A correlation of 0 means the index and strategy have no correlation. The MSCI EAFE Index (Europe, Australasia, Far East) is a free float‐adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. The MSCI USA Index is designed to measure the performance of the large and mid-cap segments of the US market. With 622 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in the US. The MSCI EAFE Value and MSCI USA Value Indices are subsets of these indices, and target 50% coverage of the MSCI EAFE Index and MSCI USA Index, respectively, with value investment style characteristics for index construction using three variables: book value to price, 12-month forward earnings to price, and dividend yield. The MSCI EAFE Growth Index and MSCI USA Growth Index are also subsets of these indices, with growth investment style characteristics for index construction using five variables: long-term forward earnings per share growth rate, short-term forward earnings per share growth rate, current internal growth rate and long-term historical earnings per share growth trend and long-term historical sales per share growth trend. The MSCI World Index is a free float-adjusted market capitalization index, designed to measure developed market equity performance, consisting of 23 developed country indices, including the US The Indices are gross of withholding taxes, assume reinvestment of dividends and capital gains, and assume no management, custody, transaction or other expenses. MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products. It is not possible to invest directly in an index. See the original with charts here. More...

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Causeway International Value Fund May Performance Review Sarah Ketterer's fund discusses economy and holdings Sarah Ketterer - Causeway International Value Fund May Performance Review
Measured in local currency terms, global equities advanced modestly as investors’ need for returns led to cautious buying of some of the less cyclical areas of global markets and “bottom fishing” of deeply-discounted financials. The top performing markets in the MSCI EAFE Index (“Index”) included Ireland, Belgium, Denmark, the Netherlands, and France. The worst performing markets in our investable universe included Austria, South Korea, Israel, Singapore, and Italy. The best performing sectors in the Index were telecommunication services, consumer staples, information technology, health care, and financials. The worst performing sectors were materials, energy, utilities, consumer discretionary, and industrials. US dollar strength was the key performance driver in May. Currency proved a headwind for US-dollar based investors investing in foreign markets, as major currencies declined against the US dollar. The Japanese yen had its weakest month versus the US dollar since May 2015. More...

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Arnold Schneider's Best-Performing Stocks Guru's 1st-quarter purchases with the highest returns Arnold Schneider,Sarah Ketterer,First Pacific Advi - Arnold Schneider's Best-Performing Stocks
Arnold Schneider is president, chief investment officer and principal of Schneider Capital Management Corp. He manages a portfolio composed of 71 stocks with a total value of $511 million. During the first quarter of 2016, the guru increased several stakes, and the following are the ones with the highest performances. More...

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10 Years of Strong Returns: NetEase, Activision Blizzard Companies show strong and steady returns, growing EPS and high profitability Jim Simons,Sarah Ketterer,Matthews China Fund,Pion - 10 Years Of Strong Returns: NetEase, Activision Blizzard
GuruFocus’ All-In-One Screener helps us find profitable companies with 10-year positive returns, strong profitability and growing EPS. More...

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Gurus Invest in Hot Cruise Companies High Piotroski scores lead to high annual returns PRIMECAP Management,Sarah Ketterer,Barrow Hanley M - Gurus Invest In Hot Cruise Companies
Among travel and leisure companies with high Piotroski F-scores, Carnival Corp. (NYSE:CCL) has the largest market cap and the highest F-score. Additionally, rival cruise company Norwegian Cruise Lines Holdings Ltd. (NASDAQ:NCLH) has the highest number of good signs. A portfolio with these stocks earned a 10-year return of 262.14% for the period from January 2006 to January 2016, according to the All-in-One Screener’s Backtesting feature. More...

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Great Britain Votes to Leave the European Union: Causeway Capital Commentary Causeway's research team shares their analysis of the 'Brexit' outcome Sarah Ketterer - Great Britain Votes To Leave The European Union: Causeway Capital Commentary
Global economic and political uncertainty has increased in the wake of the United Kingdom vote to leave the 28‐nation European Union (“EU”). With 51.9% voting to “Leave,” the referendum has divided the country by age and location, with only London and Scotland overwhelmingly favoring “Remain.” Conceding defeat, Britain’s prime minister, David Cameron, has announced his resignation. More...

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Predictable, Yes, but Is SYNNEX Undervalued? Should we look for it on a pullback? Sarah Ketterer,Joel Greenblatt,Jim Simons,David Dr - Predictable, Yes, But Is SYNNEX Undervalued?
In a couple of days (after the close on June 23, to be specific), SYNNEX Corporation (NYSE:SNX) will report on its second-quarter results. More...

SYNNEX, TECHOLOGY, DISTRIBUTION, LONG, PREDICTABLE


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Gurus Find Hot Information Technology Stocks Greenblatt reveals his winners Alan Fournier,Sarah Ketterer,Ken Fisher,David Drem - Gurus Find Hot Information Technology Stocks
Throughout the first quarter, many gurus invested some of their capital in technology stocks, suggesting that the IT sector presents good investment opportunities in the upcoming months. Two of these stocks, Infosys Ltd. (NYSE:INFY) and NetScout Systems Inc. (NASDAQ:NTCT), have been bought and held by five gurus in the past three months, according to the Consensus Picks of Gurus screener. More...

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Causeway Global Fund April Commentary The fund beat the index for the month Sarah Ketterer - Causeway Global Fund April Commentary
Global equities advanced in April, as oil prices climbed and major central banks maintained current monetary policies, stabilizing markets after the first quarter of the year. The top performing markets in our investable universe included Norway, Canada, Spain, Austria, and Japan. The worst performing markets included South Korea, Ireland, Finland, the Netherlands, and the United States. The best performing sectors in the MSCI World Index ("Index") were energy, materials, financials, health care, and industrials. The worst performing sectors were information technology, utilities, consumer staples, consumer discretionary, and telecommunication services. More...

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Sarah Ketterer Adds to Stake in Eli Lilly Company has 140 years of experience and a healthy Piotroski F-Score Sarah Ketterer - Sarah Ketterer Adds To Stake In Eli Lilly
Guru Sarah Ketterer (Trades, Portfolio), co-founder of Causeway Capital Management, raised her stake in Eli Lilly and Co. (NYSE:LLY) by 382,237 shares in the first quarter. More...

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Guru Stocks With Steady Returns: NetEase, Monster Beverage Stocks with high profitability and strong returns Sarah Ketterer, Pioneer Investments, Joel Greenbla - Guru Stocks With Steady Returns: NetEase, Monster Beverage
According to GuruFocus' All-in-One Screener, the following stocks have had strong performance over the last 10 years with high and steady returns as well as profitability. EPS has also grown steadily with the company’s revenue. Most of these companies have a great cash-to-debt ratio. More...

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Undervalued Stocks With Low PE Many of the companies have a margin of safety higher than 50% Donald Smith, Sarah Ketterer, Jim Simons - Undervalued Stocks With Low PE
The following stocks are trading with a very low P/E ratio. Most of the companies are greatly undervalued according to the DCF calculator. More...

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Causeway International Takes Stake in Japan Airlines Fund exits 3 other holdings during 4th quarter Causeway International Value,Sarah Ketterer,T. Row - Causeway International Takes Stake In Japan Airlines
The Causeway International Value (Trades, Portfolio), led by CEO Sarah Ketterer (Trades, Portfolio), aims to invest at least 80% of total assets in companies located in at least 10 foreign countries. More...

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Causeway Capital Global Value Fund Commentary, Performance Review for February Sarah Ketterer's Causeway Capital updates on thoughts on economy and holdings Sarah Ketterer - Causeway Capital Global Value Fund Commentary, Performance Review For February
Global equities finished marginally down in February, having largely recovered from a mid-month decline. Investors continue to grapple with oil price volatility, stagnating global economic growth, negative interest rates in Japan and Europe, a potential UK withdrawal from the European Union (“Brexit”), and the rise of populist politicians. The top performing markets in our investable universe included New Zealand, Canada, Singapore, Norway, and Sweden. The worst performing markets in the MSCI World Index (“Index”) included Portugal, Belgium, Finland, Italy, and Spain. The best performing sectors in the Index were materials, industrials, telecommunication services, energy, and utilities. The worst performing sectors were financials, information technology, health care, consumer staples, and consumer discretionary. More...

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Sarah Ketterer Sells Stake in Pennsylvania Utility Company Guru acquires stakes in Allstate, Advance Auto Parts, American Express Sarah Ketterer - Sarah Ketterer Sells Stake In Pennsylvania Utility Company
Sarah Ketterer (Trades, Portfolio), CEO of Causeway Capital Management, bought five new stakes in the fourth quarter, but her top three transactions were divestitures. More...

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