Sarah Ketterer's Strategic Moves in Q3 2024: A Deep Dive into Ryanair Holdings PLC's Performance

Sarah Ketterer, CEO of Causeway Capital Management, made strategic adjustments to her portfolio in Q3 2024, notably reducing her stake in Ryanair Holdings PLC (RYAAY). This move raises questions about the airline's financial performance and Ketterer's investment philosophy. This article delves into Ryanair's Q3 2023 financials and Ketterer's strategic portfolio adjustments.

Ryanair's nine-month results for 2023 show an operating profit increase of 33% to €2,396.9 million, driven by a 26% rise in total operating revenues to €11,273.9 million. However, Ryanair's stock has been volatile, with a 45.14% reduction in Ketterer's holdings, potentially indicating concerns about its future performance.

Ketterer's new additions include iShares MSCI EAFE ETF (EFA), Canadian Pacific Kansas City Ltd (CP), and International Flavors & Fragrances Inc (IFF). EFA, a broad-based international equity ETF, offers diversification and lower risk than individual stocks. CP, a railroad operator, has seen its stock rise 15.6% YTD, outperforming Ryanair's 7.43% return. IFF, a flavor and fragrance manufacturer, has a lower beta (0.67) than Ryanair (1.05), indicating less volatility.

Ketterer's significant increases in Bank Bradesco SA (BBD) and Quest Diagnostics Inc (DGX) also warrant consideration. BBD, a Brazilian bank, has a higher dividend yield (4.3%) than Ryanair (0%). DGX, a healthcare diagnostics company, has a lower beta (0.51) and a higher return on assets (10.4%) than Ryanair (4.7%).

Comparing these stocks with Ryanair, EFA and IFF offer lower risk and potential diversification benefits, while CP, BBD, and DGX have shown stronger performance or higher yields. Ketterer's strategic moves suggest a shift towards lower-risk, higher-yielding investments, potentially indicating concerns about Ryanair's future prospects.



In conclusion, Ketterer's strategic moves in Q3 2024 reflect her commitment to risk-adjusted returns and diversification. Her reduction in Ryanair Holdings PLC may indicate concerns about the airline's future performance, while her new additions and significant increases in other stocks demonstrate her ability to identify opportunities across various sectors and geographies. As Ketterer continues to refine her portfolio, investors can expect her to maintain a balanced and analytical approach to investing, focusing on long-term growth and sustainability.