Causeway Funds is a money management firm focused on global stocks and led by Sarah Ketterer (Trades, Portfolio), CEO and fundamental portfolio manager. The firm commented on its Causeway International Fund second quarter performance in its quarterly letter:
“Due primarily to less effective stock selection in the industrials and financials sectors, the Fund underperformed the Index for the second quarter. Holdings in the banks, transportation, capital goods, diversified financials, and materials industry groups detracted from relative performance, while holdings in the telecommunication services, media, and food beverage & tobacco industry groups, as well as an overweight position in the energy industry group and an underweight position in the retailing industry group contributed favorably to relative performance.”
Causeway added three new stocks in the second quarter: Schneider Electric SE (XPAR:SU, Financial), Deutsche Lufthansa AG (FRA:LHA, Financial) and Drax Group PLC (LSE:DRX, Financial).
The portfolio contains 64 stocks in total and is valued at $5.99 billion.
The New Stocks
Schneider Electric (XPAR:SU, Financial)
Causeway purchased 661,507 shares of Schneider Electric SE in the second quarter, making it 1% of the portfolio. The stock price averaged $68 for the quarter.
Schneider Electric manufactures power distribution and automation systems. Schneider Electric SE has a market cap of $36.15 billion; its shares were traded at around $64.33 with a P/E ratio of 18.90 and P/S ratio of 1.52. The dividend yield of Schneider Electric SE stocks is 2.25%. Schneider Electric Se had an annual average earnings growth of 4.90% over the past 10 years. GuruFocus rated Schneider Electric SE the business predictability rank of 3-star.
Deutsche Lufthansa AG (FRA:LHA, Financial)
Causeway purchased 1,751,155 shares of Deutsche Lufthansa in the second quarter, making it 0.63% of the portfolio. The stock’s price averaged $18 for the quarter.
Deutsche Lufthansa AG is a Germany-based company, through its subsidiaries, is engaged in aviation and operates in five business segments: the passenger airline business, logistics, maintenance, repair and overhaul, catering and information technology services. Deutsche Lufthansa AG has a market cap of $6.16 billion; its shares were traded at around $13.35 with a P/E ratio of 13.60 and P/S ratio of 0.20. The dividend yield of Deutsche Lufthansa AG stocks is 2.53%. Deutsche Lufthansa AG had an annual average earnings growth of 5.20% over the past five years.
Drax Group Plc (LSE:DRX, Financial)
Causeway purchased 214,580 shares of Drax Group in the second quarter, making it 0.039% of the portfolio. The stocks price averaged $7 in the quarter.
Drax Group Plc is incorporated in England and Wales. Drax Group Plc has a market cap of $2.54 billion; its shares were traded at around $6.28 with a P/E ratio of 48.40 and P/S ratio of 1.24. The dividend yield of Drax Group Plc stocks is 2.80%.
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