Causeway Capital's Concentrated Holdings: Focus on Consumer Cyclical and Industrials

Portfolio Overview

As of December 31, 2025, Sarah Ketterer's portfolio at Causeway Capital Management is characterized by a significant concentration in specific sectors and holdings. The portfolio's top holdings by value include Carnival Corporation (CCL) at $1.04 billion, accounting for 14.26% of the total, followed by Canadian Pacific Kansas City Ltd. (CP) at $928 million (12.78%), and Smurfit Westrock PLC (SW) at $740 million (10.18%).

High Concentration in Consumer Cyclical and Industrials

The portfolio demonstrates notable concentration in the Consumer Cyclical and Industrials sectors. Carnival Corp (CCL), a major player in the cruise industry, is the largest holding at 14.26% allocation. The portfolio also holds a substantial position in Canadian Pacific (CP), an industrials company focused on rail transportation, representing 12.78% of the portfolio. This indicates a strategic tilt towards cyclical consumer services and transportation infrastructure.

Notable Changes in Holdings

Several holdings show significant changes compared to the previous period. Smurfit Westrock PLC (SW) saw a substantial increase in its share count by 154.33%, indicating a strong conviction in this global packaging company. Conversely, Deutsche Bank AG (DB) experienced a significant reduction, with a nearly 19.44% decrease in its share count, reflecting a possible shift in strategy or underperformance assessment. Barrick Mining Corp (B) also saw a sharp decline of 61.17% in its share count, suggesting a major divestment or a change in the investment thesis for this mining stock.

Strategic Focus and Diversification

The portfolio includes exposure to other sectors such as Technology (Taiwan Semiconductor Manufacturing Co. Ltd. - TSM, 2.14%) and Communication Services (Alphabet Inc. - GOOG, 1.6%), alongside Healthcare (Merck & Co. Inc. - MRK, 1.51%). While these diversify the portfolio somewhat, the significant allocations to CCL and CP highlight a core focus on businesses potentially benefiting from cyclical upswings and global logistics. The inclusion of technology and consumer cyclical stocks suggests a belief in secular growth and consumer spending trends, respectively.

The overall strategy appears to favor companies with exposure to global travel, logistics, and essential consumer goods, alongside some exposure to technology and financials. The high concentration in specific sectors like Consumer Cyclical and Industrials warrants careful monitoring, as these sectors can be highly volatile and sensitive to economic cycles and industry-specific risks.