Causeway Capital Management CEO Sarah Ketterer advises investors to look beyond the biggest AI winners and consider overlooked stocks trading at lower valuations. At the Bloomberg Invest Dallas conference, she noted that major AI winners are at "full valuations," while perceived "losers" are often undervalued despite strong fundamentals. Ketterer highlighted Tencent Holdings Ltd., calling it "the de facto operating system of China" due to WeChat's dominance in messaging, shopping, and banking.
She compared Tencent's potential to Meta Platforms Inc.'s AI transformation. Causeway, managing about $76 billion, also favors Siemens AG, a German industrial conglomerate, citing undervalued European infrastructure plays. Ketterer emphasized that companies with "tremendous financial strength" and capital market access are best positioned to re-rate upward as earnings and free cash flow improve.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing