“One of the things that's important that we do a little bit differently at First Eagle, is we don't define value just in purely statistical terms."
It’s by design that companies in Matthew McLennan’s portfolios aren’t exactly those that set investors’ hearts racing with excitement. “We’re happy to own businesses with what we consider a gradual positive drift to them,” he says. In this article, Matthew McLennan and Kimball Brooker describe how they assess “fade risk” in a number of industries, what makes them uneasy about the state of the world today, why their exposure to gold is higher than normal, and why they see mispriced value in Fanuc, Orkla, Schlumberger, Jardine Matheson and Weyerhaeuser.
First Eagle Investment Management announced that effective January 10, 2019, the current soft-close limitations applicable to the Overseas Fund, will be removed. The Fund has been closed to certain third-party intermediaries and institutional investors since May 2014.
Watch Matt McLennan alongside Evercore ISI's, Ed Hyman, as they discuss what has changed over the last year and what that means for the U.S. economy and markets.
NEW YORK, December 10, 2018 – First Eagle Investment Management (“First Eagle”) today announced that its alternative credit group, NewStar Financial (“NewStar”), will rebrand to First Eagle Investment Management, adopting its parent’s name. NewStar’s investment team will operate as the Private Credit team of First Eagle, and the legal entities NewStar Financial, LLC, and NewStar Capital LLC, will change their names to First Eagle Private Credit, LLC, and First Eagle Private Credit Advisors, LLC, respectively.
What should investors do to prepare for 2019? Curb their enthusiasm, for one. With threats ranging from increasing debt to tightening fiscal policy, McLennan believes investors should be "realistic" rather than "too optimistic" about the coming year. That said, volatility can be an opportunity to buy solid stocks at reduced prices, he notes. McLennan looks for companies that have "resilience" across their business, from corporate culture to balance sheets. Read on for his picks.
"We go wherever we can find what we believe are good businesses with a "margin of safety" and price. And the U.S. does not have a monopoly on great businesses.
Market participants are on edge as investors weigh global trade disputes, political insurgency in Europe, of course, and diverging global central bank policy.
The short term zigs and zags don't worry us as much. What worries us a little bit more is when we stand back and look at the market environment today, a lot of things have gone right.
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