Insights
Matt McLennan and Kimball Brooker, managers of First Eagle Global Fund (SGENX), recently spoke with Advisor Perspectives to discuss the Fund’s go-anywhere approach.
When world equity markets were hitting fresh peaks in January, Wall Street commentary was, generally, very optimistic. Economic momentum was good, and despite tightening by the Fed, real interest rates did not seem high enough to trigger adverse economic effects. However, in February and March, emerging geopolitical and monetary complexities started to weigh on the markets.
When markets were hitting fresh peaks in January, Wall Street commentary was, generally, very optimistic. Economic momentum was good, and despite tightening by the Fed, real interest rates did not seem high enough to trigger adverse economic effects
As we look at our portfolio, we are cognizant of macro factors and are seeking stories of corporate change that can transcend economic headwinds. In particular, we are focused on areas where we expect change catalysts to be robust, such as stories of management change or impending spinoffs.
Although increased volatility slowed the rate of issuance in the first quarter, the market remained open throughout the period. The leveraged loan market continued to diverge from the high yield bond market. High-yield bonds were issued largely for purposes of refinancing, which we consider benign, but new loans were used primarily for equity-friendly activities: leveraged buyouts, mergers and acquisitions, stock buy-backs and dividend payments.
Pages
Contact Us
Shareholder Services
First Eagle Funds
Shareholder Servicing Agent
PO Box 219324
Kansas City, MO 64121-9324
800.334.2143