Harry Hartford of Causeway Capital Management - Value Investing and the Case for International Markets

May 14, 2024

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Today Rusty & Robyn are joined by Harry Hartford, a Portfolio Manager at Causeway Capital Management in Los Angeles, CA. Mr. Hartford is the president at Causeway, fundamental portfolio manager, and head of fundamental research. Mr. Hartford co-founded the firm in June 2001 and is a member of the operating committee. From 1996 to June 2001, Mr. Hartford was a managing director for the Hotchkis & Wiley division of Merrill Lynch Investment Managers (HW-MLIM) and co-head of the firm’s HW-MLIM international and global value team. From 1994 to 1996, Mr. Hartford was a portfolio manager for Hotchkis and Wiley. From 1984 to 1994, Mr. Hartford was with The Investment Bank of Ireland, where he gained ten years’ experience in both international and global equity management. During this time, Mr. Hartford also managed the Irish Investment Fund, a closed-end country fund quoted on the NYSE. Before entering the investment business, Mr. Hartford lectured in micro and macroeconomics at Oklahoma State University. Mr. Hartford earned a BA, with honors, in economics from the University of Dublin, Trinity College, an MSc in economics from Oklahoma State University, and is a Phi Kappa Phi member. Mr. Hartford is a member of The Ireland Funds America Board of Directors.

Key Takeaways

[03:46] - Harry's professional background and what drew him to the field of investment.
[07:20] - What is Causeway’s investment philosophy and how does it differ from other international value managers?
[09:27] - Which one of Causeway’s non-US value strategies is generating the most interest from end investors right now and why?
[11:06] - Which of Causeway’s strategies does Harry think should be generating more investor interest in the current market environment?
[12:08] - What is the argument for investing overseas, strategically, in a time where international markets have underperformed US Markets for several years?
[13:50] - Is there a different argument for International Investing from a tactical standpoint?
[15:31] - Potential catalysts that might cause the non-US markets to start to consistently outperform again.
[19:52] - It seems like everyone is saying that the US Dollar is going to get stronger in the short term. What is Harry’s outlook on the US Dollar?
[22:04] - What does Harry see ahead for International Small Cap stocks?
[24:15] - What is Causeway’s “risk lens” model and how does it benefit their clients?

Quotes

[010:37] - “[Causeway Capital’s] Emerging Markets and International Small Cap strategies are primarily quantitative with a fundamental overlay, and they would be more tracking error oriented strategies.” ~ Harry Hartford

[20:53] - “There are things that are supporting that dollar at this point in time…but…you start to get concerned around the sustainability of the Federal deficit against a backdrop where the capital required to fund that deficit comes from overseas…and in addition to that, the absolute level of indebtedness is relatively high. So, I do worry that there are things that could derail the upward trajectory of the US Dollar and I would caution against getting overly complacent, simply because the dollar, for want of a better term, is the only game in town.” ~ Harry Hartford

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Disclosure(s) - Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor.

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