Sarah Ketterer Discusses Investment Management

Ensemble Approach

Sarah Ketterer, CEO of Causeway Capital Management, emphasizes the importance of an ensemble approach in investment management. She believes that relying on a team rather than a star system mitigates risks associated with individual biases and ensures a more balanced portfolio. "Whatever the biases are, you don't want to have any one person's biases or one or two people embedded in your client portfolios all the time," Sarah explains 1. This approach involves dispersing portfolio management responsibilities among six research cluster heads, fostering a culture of teamwork and scrutiny.

   

Integrated Strategies

Causeway Capital merges quantitative research with fundamental analysis to enhance risk management. Sarah Ketterer highlights how quantitative methods help identify systematic risks, complementing the bottom-up stock selection process. "Our bottom up process is very much fundamental. Stock selection combined with quant risk control, and therefore the portfolio is inherently diversified," she notes 2. This integration allows Causeway to maintain a diversified portfolio, balancing risk and return effectively.