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Causeway Capital Cuts Linde, Microsoft, FedEx

GuruFocus.com
·5 min read

- By Tiziano Frateschi

Sarah Ketterer (Trades, Portfolio)'s Causeway Capital Management LLC manages a $5.55 billion equity portfolio composed of 79 stocks as of the quarter's end. The firm sold shares of the following stocks during the second quarter.


Linde

The fund reduced its position in Linde PLC (LIN) by 37.95%. The trade had an impact of -4.21% on the portfolio.

Causeway Capital Cuts Linde, Microsoft, FedEx
Causeway Capital Cuts Linde, Microsoft, FedEx

The company has a market cap of $130.77 billion and an enterprise value of $145.69 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 4.77% and return on assets of 2.66% are underperforming 56% of companies in the chemicals industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.28 is below the industry median of 0.67.


The largest guru shareholder of the company is Pioneer Investments (Trades, Portfolio) with 0.81% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.71% and Dodge & Cox with 0.55%.


Manulife

The fund's Manulife Financial Corp. (MFC) position was closed. The portfolio was impacted by -3.32%.

Causeway Capital Cuts Linde, Microsoft, FedEx
Causeway Capital Cuts Linde, Microsoft, FedEx

The company, which provides life insurance and wealth management products, has a market cap of $29.38 billion and an enterprise value of $23.41 billion.


The return on equity of 7.47% and return on assets of 0.43% are underperforming 67% of companies in the insurance industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 1.95 is below the industry median of 2.15.

The largest guru shareholder of the company is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.19% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.10%.

Canadian Imperial Bank

The fund exited its position in Canadian Imperial Bank of Commerce (CM). The portfolio was impacted by -2.61%.

Causeway Capital Cuts Linde, Microsoft, FedEx
Causeway Capital Cuts Linde, Microsoft, FedEx

The Canadian bank has a market cap of $33.42 billion.


GuruFocus gives the company a profitability and growth rating of 4 out of 10. While the return on equity of 10.56% is outperforming the sector, return on assets of 0.62% is underperforming 63% of companies in the banks industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 11.51 is far above the industry median of 1.33.


The largest guru shareholder is Simons' firm with 0.30% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.02%.


Microsoft

The fund trimmed its Microsoft Corp. (MSFT) holding by 51.5%, impacting the portfolio by -1.25%.

Causeway Capital Cuts Linde, Microsoft, FedEx
Causeway Capital Cuts Linde, Microsoft, FedEx

The hardware and software producer has a market cap of $1.62 trillion and an enterprise value of $1.55 trillion.

GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 40.16% and return on assets of 15.43% are outperforming 92% of companies in the software industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 1.92 is below the industry median of 2.2.

The largest guru shareholder of the company is PRIMECAP Management (Trades, Portfolio) with 0.32% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.29% and Dodge & Cox with 0.26%.

Norwegian Cruise Line

The investment fund closed its holding of Norwegian Cruise Line Holdings Ltd. (NCLH). The portfolio was impacted by -1.16%.

Causeway Capital Cuts Linde, Microsoft, FedEx
Causeway Capital Cuts Linde, Microsoft, FedEx

The company has a market cap of $4.61 billion and an enterprise value of $12.70 billion.


GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of -36.61% and return on assets of -12.26% are underperforming 87% of companies in the travel and leisure industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.22 is below the industry median of 0.42.


The largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 1.39% of outstanding shares, followed by John Rogers (Trades, Portfolio) with 0.35%.

FedEx

The investment fund curbed its FedEx Corp. (FDX) position by 44.86%. The trade had an impact of -1.13% on the portfolio.

Causeway Capital Cuts Linde, Microsoft, FedEx
Causeway Capital Cuts Linde, Microsoft, FedEx

The company, which provides shipping and mail services, has a market cap of $56.96 billion and an enterprise value of $88.20 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 7% and return on assets of 1.91% are outperforming 51% of companies in the transportation industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.14 is below the industry median of 0.3.

The largest guru shareholder of the company Dodge & Cox with 10.37% of outstanding shares, followed by Bill Gates (Trades, Portfolio)' foundation with 1.15% and HOTCHKIS & WILEY with 1.04%.

Howmet Aerospace

The investment fund exited its holding in Howmet Aerospace Inc. (HWM). The portfolio was impacted by -1.12%.

Causeway Capital Cuts Linde, Microsoft, FedEx
Causeway Capital Cuts Linde, Microsoft, FedEx

The company has a market cap of $7.61 billion and enterprise value of $11.47 billion.


GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 11.64% and return on assets of 3.16% are outperforming 55% of companies in the industrial products industry. Its financial strength is rated 4 out of 10 with a cash-debt ratio of 0.25.


The largest guru shareholder of the company is First Pacific Advisors (Trades, Portfolio) with 2.95%, followed by Steven Romick (Trades, Portfolio)'s FPA Crescent Fund with 2.17%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.