Causeway Capital’s Ketterer Bets on Travel Stocks, Chinese Tech
(Bloomberg) -- Travel and Chinese technology stocks are likely to rebound as investors look for remaining bargains while global stock indexes climb, according to Sarah Ketterer, chief executive officer of Causeway Capital Management.
“I don’t think unpopular even begins to describe how much investors don’t like these and can’t wait to get out,” Ketterer said in an interview on Bloomberg TV on Monday. “But in both those categories there are opportunities” for investors willing to be patient and wait several years, she said.
The travel sector offers opportunity especially as the economy recovers from “what we believe is soon to be the end of the Delta variant, and getting back to normal,” she added.
Ketterer said several travel technology companies including Amadeus IT Group and Sabre Corp., which cater to hotels and airlines, are undervalued because they got lean and efficient to survive the pandemic and will benefit from the return of corporate travel.
A recent crackdown from Beijing on Chinese internet companies spooked investors, but Ketterer said she believes regulation will be “rational, and not an effort to destroy growth,” citing JD.com Inc. and Baidu Inc. as stocks with potential upside.
Causeway Capital managed about $47 billion in assets as of March 31.
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