Causeway Capital Management

Sarah Ketterer

US-listed stocks across every Causeway account, including accounts that belong to no fund below. Sarah Ketterer runs Causeway Capital Management, a Los Angeles value firm she co-founded in June 2001 with Harry Hartford. She studied economics and political science at Stanford and earned an MBA from the Tuck School of Business at Dartmouth in 1987. She spent over a decade at Hotchkis & Wiley, where she launched the firm's international equity product in 1990 and, after Hotchkis became part of Merrill Lynch Investment Managers, co-led the global value team alongside Hartford. In 2001 the two of them led a team of about 25 investment and operations professionals out of Hotchkis & Wiley to build Causeway as an independent, employee-owned firm. Hartford, a Dubliner who had spent a decade managing international equities at Bank of Ireland Asset Management, took charge of fundamental research, while Ketterer runs the firm and oversees research across every sector. Their bet was that value discipline and quant tools belong together: they screen foreign companies for cheapness but lean on statistical risk models to keep the portfolio in check. Ketterer has made the point bluntly, saying that without a quant risk model, an investment manager is "completely blind." Causeway looks for companies whose earnings power can improve over a two-to-three-year horizon and whose shares sit at what Ketterer calls a "yawning gap" to their U.S. peers or their own history. That patient, value-minded approach has made the firm one of the larger shops specializing in stocks beyond the United States, run out of a single office in Los Angeles.

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