Causeway Capital Management Q1 2026 13F Holdings and Activity Report

I. Institutional Overview

Causeway Capital Management, under the leadership of Sarah Ketterer, has long been recognized as a formidable force in the realm of international value investing. As of the portfolio snapshot on March 31, 2026 , the institution manages a reported portfolio value of approximately $8.14 billion . This figure represents a significant pool of capital dedicated primarily to identifying undervalued equities across global markets, with a particular emphasis on fundamental research and a disciplined valuation-driven approach. Sarah Ketterer herself is renowned for her rigorous analytical framework, often seeking out companies with strong cash flows and sustainable competitive advantages that are temporarily mispriced by the broader market.

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II. Sector Allocation Analysis

The top three sectors—Consumer Discretionary, Others, and Financials—collectively represent approximately 60.57% of the total portfolio. If we include Industrials, the top four sectors cover over 75% of the institution's assets. This indicates a highly focused investment strategy. The dominant position of Consumer Discretionary (23.13%) is largely driven by massive individual holdings in the travel and leisure space, suggesting a strong belief in the continued resilience of global consumer spending and the post-pandemic recovery of international tourism.

Based on this allocation, Causeway Capital Management appears to be positioning for a "bifurcated" economic environment . On one hand, the heavy weight in Consumer Discretionary and Financials suggests optimism regarding consumer health and the banking sector's ability to generate returns in a normalized rate environment. On the other hand, the surge in Healthcare and the trimming of Industrials suggest a preparation for a potential slowdown in industrial production and a desire for more "all-weather" cash flows.

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III. Top 10 Holdings Deep Dive

The most dramatic development in the portfolio this quarter is the massive accumulation of AstraZeneca PLC . The institution increased its share count by a staggering 1368.35% , catapulting the stock from a relatively minor position (1.28%) to the undisputed number one holding at 17.66% of the total portfolio. This is a classic "Conviction Holding" of the highest order. AstraZeneca is a global pharmaceutical leader with a robust pipeline in oncology, rare diseases, and biopharmaceuticals. The motivation for such a massive add likely stems from a fundamental reassessment of the company's long-term growth trajectory versus its current valuation. By allocating nearly $1.44 billion to this single name, Causeway is betting that the market is significantly underestimating AstraZeneca's ability to deliver consistent, high-margin earnings growth. The weight change of +16.38% is almost entirely driven by active buying, signaling a strategic pivot toward healthcare as a primary driver of fund performance.

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IV. Major Buys/Additions

The addition of approximately $1.34 billion into AstraZeneca is the defining move of the quarter. This is not merely an addition; it is a structural transformation of the portfolio. The motivation appears to be a "Growth Acceleration Bet" disguised as a value play. AstraZeneca has successfully transitioned from a company facing a patent cliff a decade ago to a leader in high-growth areas like oncology (with blockbuster drugs like Tagrisso and Imfinzi). The institution likely views the current valuation as failing to account for the long-term earnings power of its rare disease division (Alexion) and its industry-leading R&D productivity. By making AZN nearly 18% of the fund, Causeway is positioning it as the primary engine for capital appreciation, moving away from more volatile cyclical names.

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V. Major Sells and Exits

The reduction of $298.5 million in Canadian Pacific is a "Major Strategic Contraction." CP has been a stellar performer, especially following its landmark merger to create the first single-line rail network connecting Canada, the U.S., and Mexico. However, with the stock reaching high valuation multiples and the "merger synergy" story well-understood by the market, Causeway has decided to trim its exposure by 30.20%. This is likely a case of "recycling capital" from a mature winner into a new opportunity (AstraZeneca). It does not necessarily signal a lack of faith in CP’s fundamentals, but rather a judgment on relative value.

The $142 million reduction in Smurfit Westrock, combined with the complete exit of Graphic Packaging (GPK) , suggests a broader "Strategic Retreat" from the paper and packaging industry. This sector is highly sensitive to global consumer goods volumes and input costs (energy and fiber). By reducing SW by 18.64% and exiting GPK entirely, the institution is signaling a belief that the peak of the packaging cycle may be behind us, or that the risk-reward profile has soured due to overcapacity or slowing demand.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

VI. Investment Insights and Risk Warnings

The logic chain is clear: the institution has systematically harvested profits from its successful "reopening" and "industrial recovery" trades (Canadian Pacific, Smurfit Westrock) and exited broad-market emerging market exposures that offered more volatility than alpha. This capital has been aggressively redeployed into a few "Franchise" assets—most notably AstraZeneca and Deutsche Bank . This shift suggests a belief that in the current phase of the economic cycle, "beta" (market-wide growth) is becoming scarce, and investors must look to "idiosyncratic" stories where company-specific catalysts (R&D breakthroughs in pharma, structural restructuring in banking) can drive returns independent of the macro backdrop.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

Sources and limitations

This report uses public U.S. Securities and Exchange Commission Form 13F disclosures and structured data maintained by 13F Hub. A 13F filing is a quarter-end snapshot of reportable long positions, is normally published with a delay, and does not disclose every short position, cash balance, bond, derivative, or non-U.S. asset.

Narrative content is prepared from the same-period SEC disclosure and 13F Hub structured data, then checked before publication. This material is for research and education, not personalized investment advice.