Causeway

Causeway is a Gerrards Cross, United Kingdom-based software company that develops specialized management and collaboration platforms for businesses operating within the construction, maintenance, and infrastructure sectors. The enterprise provides subscription-based software solutions designed to streamline complex project accounting, supply chain operations, and electronic invoicing processes across the entire construction lifecycle. Through its proprietary Project Accounting platform, the organization actively manages financial budgets and operational costs for more than 1,350 distinct construction projects annually. Furthermore, its Tradex network facilitates extensive supply chain collaboration by processing millions of transactions representing billions in total contract value for thousands of connected buyers and suppliers. The firm previously expanded its core technological capabilities and overall market footprint through the strategic corporate acquisition of workplace management provider Donseed UK Ltd. Causeway was officially established in 1999 by its founder Phil Brown.

High-Level Overview

Causeway Capital Management is a majority employee-owned investment management firm founded in 2001, specializing in global equity strategies that blend fundamental and quantitative research to outperform benchmarks over full market cycles.[1][5] Its mission centers on delivering superior long-term returns with risk levels aligned to potential upside, primarily through value-oriented investments in mispriced equities across developed and emerging markets, while prioritizing dividend income where possible.[1][2] Key sectors include global value, international value, emerging markets, and sustainable strategies, managing $67 billion in assets for institutional clients in the US, Canada, Australia, Europe, and the Middle East.[1][3] While not a traditional VC firm focused on startups, its disciplined active management and 30+ year track record influence institutional capital allocation in global equities, indirectly supporting broader market liquidity for growth companies.[1][3]

Origin Story

Causeway was established in June 2001 in Los Angeles by Sarah Ketterer and Harry Hartford, along with a team of 25 professionals from a prior firm, driven by a shared commitment to value-focused, employee-owned active management.[1][3] This group, including fundamental and quantitative experts, operations, and compliance staff—many still with the firm today—split off to create a structure they believed would better serve clients amid evolving markets.[1] The firm's evolution has seen steady growth to 111 employees (40 investment professionals) and global offices in places like Melbourne and Shanghai (now downscaled), while maintaining a core focus on a handful of value strategies without overextending into new funds.[3][5] Ketterer and Hartford retain majority control but are planning a leadership transition, leveraging their experienced team.[3]

Core Differentiators

• Unique Investment Model: Combines bottom-up fundamental analysis (e.g., payout yields, earning yields, price-to-cash flow) with quantitative tools for risk management and stock screening, targeting undervalued mid- and large-cap equities held until market recognition.[1][4]
• Network Strength: Serves a global institutional base from its LA headquarters, with specialized offices for key regions; employee ownership fosters alignment and retention of long-tenured professionals.[1][3]
• Track Record: Over 30 years of team experience (including prior firm), with strategies like global value and emerging markets consistently seeking capital growth and income; recent 13F shows concentrated holdings in names like Canadian Pacific and Carnival Corp.[1][6]
• Operating Support: Disciplined portfolio construction (25-35 holdings in some strategies), active evolution to client needs (e.g., sustainable options), and UCITS vehicles for international access, emphasizing full-cycle outperformance.[2][3]

(Note: A separate entity at causeway.vc focuses on growth-stage sports/fitness investments, but primary references confirm Causeway Capital as the global equity manager.[7])

Role in the Broader Tech Landscape

Causeway rides the trend of renewed interest in value investing amid volatile global markets, where quantitative enhancements help navigate tech-driven disruptions in emerging and developed equities.[1][3] Timing aligns with post-2020 cycles favoring active management over passive indexing, as institutions seek alpha in mispriced assets amid inflation, geopolitical shifts, and AI-fueled rotations.[4] Market forces like rising dividend demands and emerging market rebounds (e.g., via strategies benchmarked to ACWI) play to its strengths, while its global footprint influences ecosystem liquidity for tech-adjacent sectors like industrials and consumer names in its 13F portfolio.[2][6] By channeling institutional capital judiciously, it bolsters efficient pricing in broader equities, indirectly aiding tech growth through stable funding environments.[3]

Quick Take & Future Outlook

Causeway's employee-owned stability and value discipline position it for continued outperformance as markets cycle, with leadership transition ensuring continuity amid $67B AUM scale.[1][3] Trends like sustainable strategies and quant refinements will shape its path, potentially expanding emerging markets exposure as global growth rebalances.[2][4] Its influence may evolve toward deeper tech integration in analysis, amplifying impact on institutional portfolios—reinforcing its role as a steady global equity anchor in an unpredictable landscape.[1]