Sarah Ketterer - Causeway Capital Management Llc Portfolio Q2’2025: Top Holdings & Recent Changes
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Sarah Ketterer continues to demonstrate exceptional value investing discipline. Her Q2’2025 portfolio reveals a dynamic approach to global equities, with $6.3 billion deployed across 99 positions. The latest 13F filing highlights significant moves in transportation, financials, and technology, reflecting Causeway Capital’s commitment to deep fundamental analysis and opportunistic rebalancing.
Portfolio Overview: Global Value, Strategic Adjustments
Portfolio Highlights (Q2’2025): - Market Value: $6,318.1M - Top 10 Holdings: 60.3% - Portfolio Size: 99 +7 - Average Holding Period: 13 quarters - Turnover: 25.3%
Sarah Ketterer’s Causeway Capital portfolio remains highly diversified, yet the top 10 holdings account for over 60% of total assets, signaling a strong conviction in select global leaders. The addition of seven new positions this quarter underscores a willingness to adapt and seize value opportunities as market conditions evolve.
With an average holding period of 13 quarters, Causeway Capital demonstrates patience and a long-term mindset, balancing steady core holdings with tactical adjustments. The 25.3% turnover rate this quarter suggests active rebalancing, particularly in sectors where valuation gaps have widened or fundamentals have shifted.
Top Holdings Analysis: Transportation, Financials, and Tech in Focus
The portfolio is anchored by Canadian Pacific Railway Limited at 18.4%, though Ketterer reduced this position by 14.69%—a notable trim in one of her largest bets. Carnival Corporation & plc 13.0% saw a 9.65% addition, signaling renewed confidence in travel and leisure recovery. The most dramatic move was in Deutsche Bank AG, with an extraordinary 1,176.19% increase, now representing 9.0% of the portfolio—a bold play on European financials.
Industrial exposure was further diversified with a new buy in Barnes Group Inc. 5.8%, while packaging leader Smurfit Westrock Plc was added to by 160.43%, now at 4.8%. In technology, Alibaba Group Holding Limited 2.2% was trimmed by 8.37%, and Alphabet Inc. 2.0% received a modest 3.47% increase.
Semiconductor exposure remains steady, with Taiwan Semiconductor Manufacturing Company Limited 1.9% slightly reduced by 0.35%. Financials remain a core theme: CITIGROUP INC 1.7% was trimmed by 6.73%, while Cognizant Technology Solutions Corporation 1.5% saw a 28.71% addition, highlighting a pivot toward IT services.
Other notable holdings in the top 15 include global consumer and industrial names, with active management evident in both additions and reductions across sectors.
What the Portfolio Reveals About Current Strategy
- Global Diversification: Causeway Capital’s portfolio spans North America, Europe, and Asia, with significant allocations to transportation, financials, and technology.
- Opportunistic Rebalancing: Large increases in Deutsche Bank AG and Smurfit Westrock Plc reflect tactical bets on cyclical recovery and sector rotation.
- Quality and Value Focus: The long average holding period and concentration in industry leaders suggest a commitment to intrinsic value and business quality.
- Risk Management: Active trimming of outsized positions (e.g., Canadian Pacific Railway) and selective additions indicate disciplined risk controls.
- Sector Rotation: Increased exposure to travel, packaging, and IT services points to a nuanced view of post-pandemic recovery themes.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Canadian Pacific Railway Limited | $1,163.9M | 18.4% | Reduce 14.69% |
| Carnival Corporation & plc | $819.1M | 13.0% | Add 9.65% |
| DEUTSCHE BANK AG | $570.4M | 9.0% | Add 1,176.19% |
| Barnes Group Inc. | $366.7M | 5.8% | Buy |
| Smurfit Westrock Plc | $302.7M | 4.8% | Add 160.43% |
| Alibaba Group Holding Limited | $140.9M | 2.2% | Reduce 8.37% |
| Alphabet Inc. | $128.0M | 2.0% | Add 3.47% |
| Taiwan Semiconductor Manufacturing Company Limited | $117.3M | 1.9% | Reduce 0.35% |
| CITIGROUP INC | $107.2M | 1.7% | Reduce 6.73% |
| Cognizant Technology Solutions Corporation | $92.2M | 1.5% | Add 28.71% |
The top 10 positions account for 60.3% of total assets, with Canadian Pacific Railway Limited and Carnival Corporation & plc alone representing over 31%. This concentration reflects high conviction in select global leaders, while the dramatic increase in Deutsche Bank AG signals a willingness to make bold, tactical moves when value emerges. The table also highlights Causeway Capital’s active approach, with significant changes in position sizing across multiple sectors.
Investment Lessons from Sarah Ketterer’s Value Approach
- Conviction Matters: Concentrated bets in transportation and financials show the importance of deep research and confidence in business fundamentals.
- Long-Term Patience: An average holding period of 13 quarters demonstrates the value of allowing investments to compound over time.
- Opportunistic Adjustments: Tactical increases and reductions reflect a willingness to act decisively when market conditions shift.
- Global Perspective: Diversification across geographies and industries helps manage risk and capture varied sources of value.
- Disciplined Risk Management: Regular trimming of outsized positions and selective additions maintain portfolio balance and limit downside.
Looking Ahead: What Comes Next?
With 99 positions and a 25.3% turnover rate, Causeway Capital is well-positioned to capitalize on global market dislocations. The substantial increase in European financials and packaging suggests a bullish outlook on cyclical recovery, while continued exposure to technology and transportation provides balance. Investors should watch for further moves in travel, industrials, and IT services, as Ketterer adapts to evolving macroeconomic trends and sector rotations.
FAQ about Sarah Ketterer’s Causeway Capital Portfolio
Q: What was the most significant portfolio change in Q2’2025?
The most dramatic move was a 1,176.19% increase in Deutsche Bank AG, reflecting a major tactical bet on European financials.
Q: How concentrated is the portfolio?
The top 10 holdings account for 60.3% of total assets, with the largest position (Canadian Pacific Railway Limited) at 18.4%.
Q: How does Causeway Capital manage risk?
Risk is managed through global diversification, disciplined trimming of outsized positions, and a long-term holding mindset.
Q: Which sectors saw the most activity this quarter?
Transportation, financials, and packaging saw the largest changes, with notable additions and reductions in each.
Q: How can investors track Sarah Ketterer’s moves?
Follow quarterly 13F filings and use ValueSense’s Causeway Capital tracker for real-time updates and in-depth analysis. Note that 13F filings have a 45-day reporting lag.
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