Global Equity Strategy

Seeks to deliver attractive real returns while avoiding the permanent impairment of capital over time by using a value approach to investing in global equity markets.

Strategy at a glance

  1. The above are not investment guidelines or restrictions and are subject to change without notice.

  2. The information provided is not to be construed as a recommendation or an offer to buy or sell or the solicitation of an offer to buy or sell any fund or security.

Investment Philosophy

  • We believe that the market episodically fails to recognize, in our view, a company’s “intrinsic value;” we selectively invest when price presents what we believe to be an appropriate “margin of safety.”
  • We seek persistent businesses that embody asset scarcity, strong capital structures and corporate resilience.
  • Our fundamental, bottom-up approach requires a temperament focused on: patience, humility and flexibility.

 

Strategy Highlights

  • Absolute Return Mindset

    Dedication to mitigate downside risk

  • Flexible, Benchmark-Agnostic Approach

    Ability to invest across sector, regions, and market cap without constraints of a benchmark

  • Demonstrated Stock Picking Ability of Team

    The strategy will leverage the Global Value teams experience with picking stocks

Strategy at a glance

  1. The above are not investment guidelines or restrictions and are subject to change without notice.

  2. The information provided is not to be construed as a recommendation or an offer to buy or sell or the solicitation of an offer to buy or sell any fund or security.

Our Process

We identify companies for consideration when they exhibit specific characteristics such as: Scarcity. Durability. Persistence.

Our highly selective approach is focused on finding quality companies and then patiently waiting for that company to trade at what we view as an attractive price.

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  1. Risk Disclosures

  2. All investments involve the risk of loss of principal.

  3. There are risks associated with investing in securities of foreign countries, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates.

  4. A principal risk of investing in value stocks is that the price of the security may not approach its anticipated value or may decline in value. “Value” investments, as a category, or entire industries or sectors associated with such investments, may lose favor with investors as compared to those that are more “growth” oriented.

  5. Disclosures

  6. These are not investment guidelines or restrictions and will be subject to change. Actual portfolio will differ.

  7. FEF Distributors, LLC (“FEFD”) (SIPC), a limited purpose broker-dealer, distributes certain First Eagle products. FEFD does not provide services to any investor, but rather provides services to its First Eagle affiliates. As such, when FEFD presents a fund, strategy, or other product to a prospective investor, FEFD and its representatives do not determine whether an investment in the fund, strategy or other product is in the best interests of, or is otherwise beneficial or suitable for, the investor. No statement by FEFD should be construed as a recommendation. Investors should exercise their own judgment and/or consult with a financial professional to determine whether it is advisable for the investor to invest in any First Eagle fund, strategy, or product.

  8. Definitions

  9. “Intrinsic value” is based on our judgment of what a prudent and rational business buyer would pay in cash for all of the company in normal markets.

  10. First Eagle defines "margin of safety" as the difference between a company's market price and our estimate of its intrinsic value. An investment made with a margin of safety is no guarantee against loss.

  11. Benchmark Definitions

  12. Indices are unmanaged and do not incur management fees or other operating expenses. One cannot invest directly in an index.

  13. MSCI World: The MSCI World Index is a widely followed, unmanaged group of stocks from 23 developed markets and is not available for purchase. The index provides total returns in U.S. dollars with net dividends reinvested.

  14. MSCI World Value: The MSCI World Value Index captures large and mid-cap securities exhibiting overall value style characteristics across 23 Developed Markets (DM) countries. The index provides total returns in US dollars with net dividends reinvested.

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  • Julien Albertini Headshot

    Julien Albertini

    Portfolio Manager and Senior Research Analyst
    Industry start:  
    2003
    Year joined:  
    2013
  • Brooker Kimball Headshot

    Kimball Brooker Jr.

    Co-Head of Global Value Team and Portfolio Manager
    Industry start:  
    1992
    Year joined:  
    2009
  • Manish Gupta Headshot

    Manish Gupta

    Portfolio Manager and Senior Research Analyst
    Industry start:  
    2005
    Year joined:  
    2009
  • Matthew McLennan Headshot

    Matthew McLennan

    Co-Head of Global Value Team and Portfolio Manager
    Industry start:  
    1991
    Year joined:  
    2008

Our Process

The investment team follows a bottom-up, fundamental approach, focusing on companies with businesses which it believes both exhibit sustainable profitability and are trading at significant discounts to their “Intrinsic Values.”
Selective Participation

  • 01

    Scarcity

    We look for companies that exhibit scarcity through intangible and tangible assets associated with their businesses that may result in strong demand advantages and/or lasting supply advantages.

    We believe that scarcity of assets is the foundation of durability.

  • 02

    Durability

    Businesses with durability generally have long duration, scarce assets, strong capital structures and management with prudent mindsets. 

    Scarce and durable assets overlaid with a strong capital structure and strong management teams may result in what we view as attractive companies that potentially produce persistent earnings.

  • 03

    Persistence

    Once we have identified a company with demonstrated persistence, we look for the intersection of attractive price and timing to selectively participate.

  • 04

    “Margin of Safety”

    Buy and sell decisions are based on our estimates of a company’s “intrinsic value” and “margin of safety”—the difference between its market value and our estimate.

We seek to avoid companies with high valuations, high levels of leverage, “black box” balance sheets, vulnerable business models, and/or aggressive management behavior.

  1. Not all companies held in this strategy will meet the criteria listed.

  1. Risk Disclosures

  2. All investments involve the risk of loss of principal.

  3. There are risks associated with investing in securities of foreign countries, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates.

  4. A principal risk of investing in value stocks is that the price of the security may not approach its anticipated value or may decline in value. “Value” investments, as a category, or entire industries or sectors associated with such investments, may lose favor with investors as compared to those that are more “growth” oriented.

  5. Disclosures

  6. These are not investment guidelines or restrictions and will be subject to change. Actual portfolio will differ.

  7. FEF Distributors, LLC (“FEFD”) (SIPC), a limited purpose broker-dealer, distributes certain First Eagle products. FEFD does not provide services to any investor, but rather provides services to its First Eagle affiliates. As such, when FEFD presents a fund, strategy, or other product to a prospective investor, FEFD and its representatives do not determine whether an investment in the fund, strategy or other product is in the best interests of, or is otherwise beneficial or suitable for, the investor. No statement by FEFD should be construed as a recommendation. Investors should exercise their own judgment and/or consult with a financial professional to determine whether it is advisable for the investor to invest in any First Eagle fund, strategy, or product.

  8. Definitions

  9. “Intrinsic value” is based on our judgment of what a prudent and rational business buyer would pay in cash for all of the company in normal markets.

  10. First Eagle defines "margin of safety" as the difference between a company's market price and our estimate of its intrinsic value. An investment made with a margin of safety is no guarantee against loss.

Show More Show Less

  1. Risk Disclosures

  2. All investments involve the risk of loss of principal.

  3. There are risks associated with investing in securities of foreign countries, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates.

  4. A principal risk of investing in value stocks is that the price of the security may not approach its anticipated value or may decline in value. “Value” investments, as a category, or entire industries or sectors associated with such investments, may lose favor with investors as compared to those that are more “growth” oriented.

  5. Disclosures

  6. These are not investment guidelines or restrictions and will be subject to change. Actual portfolio will differ.

  7. FEF Distributors, LLC (“FEFD”) (SIPC), a limited purpose broker-dealer, distributes certain First Eagle products. FEFD does not provide services to any investor, but rather provides services to its First Eagle affiliates. As such, when FEFD presents a fund, strategy, or other product to a prospective investor, FEFD and its representatives do not determine whether an investment in the fund, strategy or other product is in the best interests of, or is otherwise beneficial or suitable for, the investor. No statement by FEFD should be construed as a recommendation. Investors should exercise their own judgment and/or consult with a financial professional to determine whether it is advisable for the investor to invest in any First Eagle fund, strategy, or product.

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