Our fundamental value philosophy emphasizes a combination of compounding of dividend returns and book value increases. Causeway’s analysts scour global equity markets for that winning intersection of quality and sizable undervaluation. An above-average payout yield (dividend yield plus share buybacks) ensures that we are compensated to wait until the stock returns to favor. Our proprietary, quantitative risk controls help us determine the optimal mix of risk and return.

Investing in emerging markets requires measurement and understanding of both top-down (country/sector) and stock-specific factors. The Causeway Emerging Markets Equity strategy seamlessly combines value and growth-oriented factors, as well as bottom-up and top-down factors. We employ this combination of factors to exploit investment opportunities across countries and sectors and along the market capitalization spectrum, while avoiding undue sources of risk.

For investors who want a broad opportunity set, unconstrained by geography, the Causeway Opportunities strategies combine our Value (bottom-up, fundamental, developed markets) and our Emerging Markets (quantitatively managed with a targeted tracking error of 5%) strategies. A pragmatic, factor-based allocation model, developed by our quantitative team, guides our portfolio managers in allocating tactically between developed and emerging markets.

As equity markets rise and fall, the objective of Causeway's Global Absolute Return strategy is to produce a pattern of performance that is liberated from market cycles. GAR offers investors an innovative long/short mutual fund that blends proven Causeway skill sets: our global fundamental value stock selection on the long side, and our quantitative stock selection on the short side. The dollar amount of the GAR long exposures is generally equivalent to the dollar amount of its short exposures, but the portfolio may have sector or regional biases. The strategy uses leverage to amplify total return.