Ketterer Explains Causeway’s Shift to Defensive Stocks

The transcript discusses investment strategies during market dislocations, focusing on trading up and investing in undervalued stocks. It highlights investments in aerospace and software sectors, emphasizing post-pandemic beneficiaries like Walt Disney. A case study on Volkswagen illustrates cyclical stock management and risk-adjusted returns.

What was the initial reaction of the investors to the market dislocations?

• Fear and panic

• Indifference and caution

• Horror and glee

• Excitement and confidence

Which industry was significantly affected by the crisis, leading to investment opportunities?

• Retail

• Technology

• Healthcare

• Aerospace and tourism

Which company was highlighted as a major investment opportunity in the aerospace sector?

• Lockheed Martin

• Northrop Grumman

• Airbus

• Boeing

What type of companies became attractive to value managers during the pandemic?

• Energy companies

• Retail giants

• Pharmaceutical companies

• Software companies in travel and tourism

Which company is mentioned as a post-pandemic beneficiary in the US market?

• Netflix

• Amazon

• Tesla

• Walt Disney

What was the approach taken by value managers with Volkswagen during its crisis?

• Investing in competitors

• Doubling positions and working with management

• Ignoring the company

• Selling off all shares

Why do disciplined value managers reduce positions in cyclical stocks after a rapid price increase?

• To avoid taxes

• To increase risk

• To follow market trends

• To maintain a risk-adjusted return