Sarah Ketterer Q1 2026 Portfolio — AZN New $1.4B Position, DB & CCL Significantly Increased

Sarah Ketterer's Causeway Capital Management initiated a $1.4B position in ASTRAZENECA PLC in its Q1 2026 13F filing, making it the largest holding at 17.7% of the total portfolio. With total AUM of $5.9B across 20 positions, DB entered the top 3 at $723M following an aggressive 76% increase, while CCL maintained its second-place ranking with a 9% increase to $960M.

Top 5 Holdings — Q1 2026

• ASTRAZENECA PLC: $1.4B (17.7%)
• CCL: $960M (11.8%)
• DB: $723M (8.9%)
• CP: $690M (8.5%)
• SW: $620M (7.6%)

Q1 2026 Key Trading Activity

The most notable shift in this filing is the large-scale entry into pharmaceutical and biotech mega-caps. The structure — selling the entire existing AZN position ($93M) and simultaneously initiating a separate $1.4B position under ASTRAZENECA PLC — reads as a strategic repositioning well beyond a simple ticker swap. Cruise operator CCL held its second-place rank at $960M (11.8% weight), preserving the consumer recovery theme, while Deutsche Bank (DB) signaled strong conviction in European financials with an aggressive 76% increase in allocation.

• ASTRAZENECA PLC: New position $1.4B (17.7%) — Jumps straight to #1 holding, largest bet on a global pharma mega-cap
• DB: Increased +76% ($723M) — Strong conviction in European financial recovery, aggressive add
• CCL: Increased +9% ($960M) — Sustains cruise and consumer recovery theme, position reinforced
• AZN: Full exit $93M → 0 — Replaced by new ASTRAZENECA PLC position, effectively a structural reshuffling
• VWO: Reduced -88% ($403,699) — Emerging market ETF nearly liquidated, shift toward concentrated individual stock strategy
• TXN: New position $40M — Small-scale entry into semiconductors, portfolio diversification point

Newly initiated positions include DTE ($47M), TXN ($40M), TAL ($40M), and PBR/A ($28M). On the sell side, GPK, ALLY, VIPS, and VALE were fully exited, tightening the portfolio's focus. The near-complete liquidation of emerging market and Taiwan ETF positions — EWT (-80%), VWO (-88%) — further underscores a shift in emphasis away from diversification and toward a high-conviction, individual stock strategy.

Outlook: Will the Europe & Healthcare Concentration Strategy Hold?

Ketterer's Q1 2026 portfolio clearly reflects a concentrated bet on non-U.S. large-cap value names — ASTRAZENECA (healthcare), DB (European financials), CP (Canadian rail), and SW among them. Having trimmed ETF and emerging market exposure and narrowed the portfolio to 20 high-conviction positions, the key watchpoints in future filings will be whether existing top holdings are further scaled up or new European and global value names are added. A weakening U.S. dollar environment and expectations of a European economic rebound are the critical variables that will determine whether this strategy pays off.