New L.A. Firm Plans to Launch Stock Fund

Causeway Capital Management, the Los Angeles-based firm started in June by Sarah Ketterer and two other former portfolio managers at Merrill Lynch & Co.’s unit formerly known as Hotchkis & Wiley, filed papers Wednesday to launch a no-load international stock fund later this year, InvestorForce.com reported.

The Causeway International Value Fund will be managed by Ketterer and her colleagues Harry Hartford and James Doyle, who worked with her at Merrill’s L.A. unit before the trio defected.

The Ketterer team managed about $3.5 billion, including the $1.1-billion Mercury HW International Value Fund, at Merrill. The team racked up a strong long-term record specializing in out-of-favor foreign stocks, according to fund tracker Morningstar Inc.

Merrill, which bought Hotchkis & Wiley in 1996, sold the L.A. unit in June to a group of company executives for an undisclosed sum.

Ketterer declined to comment Wednesday on her plans for the new fund, which were revealed in a registration statement with the Securities and Exchange Commission.