Causeway is an independently owned investment management firm specializing in equity strategies that span the globe. We apply a combination of fundamental and quantitative research disciplines via value-focused strategies. Based in Los Angeles, we manage assets for institutions located in the United States and Canada as well as Australia, Europe, Asia and the Middle East.
Causeway’s investment team’s track record spans nearly 30 years (including tenure at a prior firm), reflecting our ability to help our clients meet their investment objectives as markets cycle and evolve.
Pioneers in international markets
In 1990, when few asset allocators dared invest substantially beyond their home markets, Sarah Ketterer co-founded the international value strategy for Hotchkis & Wiley. Harry Hartford joined her in 1994, and they continued to manage the international value strategy when Merrill Lynch Investment Managers (MLIM) purchased Hotchkis & Wiley in 1996. Their shared belief in value-focused, fundamentally driven active management guided the design of our flagship strategy. In 2001, members of this international value equity team left to form Causeway. They believed that an employee-owned firm could better serve its clients. The team of 25 people included fundamental and quantitative investment professionals, operations, and compliance staff — many of whom remain at Causeway today.
Fundamental and quantitative: A strengthening union
Marrying seemingly disparate fundamental and quantitative research disciplines is at the core of our approach. Early on, we embedded a quantitative risk model into fundamental portfolio construction, for deliberate portfolio risk positioning. Later, we created a quantitatively driven alpha process with fundamental risk mitigators to capture diverse performance drivers in emerging markets equities. Our global absolute return strategy synthesized both approaches. Today, fundamental and quantitative analysts at Causeway continue to collaborate, developing new ways for quantitative tools to assist in fundamental portfolio decisions, and for our collective fundamental knowledge to augment our quantitative capabilities.
Sharing our powerful research tools with clients
In recent years, we have complemented our investment management services by sharing our analytical capabilities and research with our clients, from our Risk Lens service to our research in Environmental, Social, and Governance (“ESG”) materiality.
The Causeway legend
Along the coastal cliffs of Northern Ireland, over 40,000 basalt columns interlock in a unique topology to form the Giant’s Causeway. Geologists attribute the origin of the Causeway to the cooling of multiple lava flows upon contact with the sea over 60 million years ago. Yet, according to local legend, the geographical wonder was formed when giant Finn McCool hurled lumps of earth into the Irish Sea to build a bridge between Ireland and Scotland.
This distinctive bridge between lands symbolizes timelessness, survival, and permanence. At Causeway, we share a deep commitment to the enduring virtues of thorough analysis, critical debate, and the cultivation of talent.
Moreover, the structure of our own research team reflects the interlocking columns of the Causeway. We draw on the innovative spirit of the legendary Finn McCool as we blend quantitative and fundamental research to help our clients reach their goals.
This spirit of innovation is pervasive at Causeway. We are a firm replete with new ideas, cutting-edge research and proprietary models. Causeway is a place where new ideas are generated and old practices challenged.