The Zhitong Finance App learned that Causeway Capital Management CEO Sarah Ketley said that investors should set their sights on targets other than the biggest winners in the AI boom and bet on stocks that have been overlooked.
In an interview in Dallas on Tuesday, Kaitri said, “The interesting thing about AI is that the market sees which companies are AI losers.”
Causeway manages approximately $76 billion in assets, and all of its funds use a combination of fundamentals and quantification. Ketley said that the current valuations of the biggest winners in the AI boom are “fully reflected”, while “perceived losers” are viewed by the market as companies unable to keep up with this technology.
She said one company worth betting on is Tencent Holdings (00700), a Chinese company that owns the popular instant messaging app WeChat.
Kaitri refers to Tencent as “China's de facto operating system.”
She said WeChat “is everything for Chinese people” and “it's not just a social network — it's shopping, it's banking, everything.”
Investors look at Tencent today the way they look at Meta Platforms (META.US) — before Facebook's parent company turned into an AI giant, she said. Tencent has the same resources to make this transformation happen.
The criteria for distinguishing winners and losers, she said, are “companies that have tremendous financial strength and can further expand this strength in the capital market.”
In the rest of Causeway's portfolio, Kaitri said she is optimistic about the German industrial and technology conglomerate Siemens.
She said that the industrial sector “is now full of dead bodies.” Outside of the US, Ketley saw undervalued companies whose valuation multiples were only half that of the US. She said that European countries need to invest in infrastructure construction, and companies like Siemens will benefit from it.
She pointed out, “As profits improve and free cash flow returns to shareholders, this stock is likely to be re-graded.”