Sarah Ketterer (Trades, Portfolio), the CEO and fundamental portfolio manager at Causeway, has recently filed the firm's 13F report for the second quarter of 2023. Ketterer, who co-founded Causeway in June 2001, is known for her investment research across all sectors. Prior to Causeway, she held significant roles at the Hotchkis & Wiley division of Merrill Lynch Investment Managers and Hotchkis & Wiley. Ketterer's portfolio for Q2 2023 contained 81 stocks with a total value of $3.80 billion.
Top Holdings
The top holdings in Ketterer's portfolio were Ryanair Holdings PLC (RYAAY, Financial) with 21.85%, Canadian National Railway Co (CNI, Financial) with 9.21%, and UBS Group AG (UBS) with 4.74%.
Major Trades of the Quarter
The firm's top three trades of the quarter involved significant reductions in holdings of CNI, RYAAY, and Taiwan Semiconductor Manufacturing Co Ltd (TSM, Financial).
Canadian National Railway Co (CNI, Financial)
Ketterer reduced the firm's investment in CNI by 1,845,152 shares, impacting the equity portfolio by 5.22%. The stock traded at an average price of $118.58 during the quarter. As of August 15, 2023, CNI had a market cap of $75.21 billion and a stock price of $114.5, reflecting a -8.41% return over the past year. GuruFocus rates CNI's financial strength and profitability 5/10 and 9/10, respectively. The company's valuation ratios include a P/E ratio of 19.75, a P/B ratio of 4.96, a PEG ratio of 2.95, an EV-to-Ebitda ratio of 12.77, and a P/S ratio of 5.99.
Ryanair Holdings PLC (RYAAY, Financial)
The firm also reduced its investment in RYAAY by 1,736,975 shares, impacting the equity portfolio by 3.93%. The stock traded at an average price of $100.71 during the quarter. As of August 15, 2023, RYAAY had a market cap of $22.48 billion and a stock price of $98.7, reflecting a 30.02% return over the past year. GuruFocus rates RYAAY's financial strength and profitability 7/10 and 7/10, respectively. The company's valuation ratios include a P/E ratio of 17.11, a P/B ratio of 2.88, an EV-to-Ebitda ratio of 8.79, and a P/S ratio of 1.53.
Taiwan Semiconductor Manufacturing Co Ltd (TSM, Financial)
Lastly, Ketterer reduced the firm's investment in TSM by 1,326,004 shares, impacting the equity portfolio by 2.96%. The stock traded at an average price of $93.07 during the quarter. As of August 15, 2023, TSM had a market cap of $476.32 billion and a stock price of $91.84, reflecting a 2.18% return over the past year. GuruFocus rates TSM's financial strength and profitability 8/10 and 10/10, respectively. The company's valuation ratios include a P/E ratio of 15.22, a P/B ratio of 4.43, a PEG ratio of 0.81, an EV-to-Ebitda ratio of 9.09, and a P/S ratio of 6.32.
In conclusion, Ketterer's Q2 2023 portfolio reflects a strategic approach to value investing, with significant moves in key holdings. These decisions provide valuable insights into the firm's investment philosophy and strategy.
