Matt McLennan reflects on his first decade managing First Eagle's Global Value team, and the challenges and potential rewards of value investing. See what excites him about the next 10 years.
At First Eagle, we have received many questions about sustainable investing from investors and investment professionals. To help answer these questions, we asked Thomas Kertsos, co-portfolio manager of the Gold Fund, and Max Belmont, research analyst for the Gold Fund, to discuss their thinking in this area.
The private debt market has expanded over the past decade, as institutional and high-net-worth investors, disappointed by falling bond yields, have sought corners of the fixed income market where robust returns may still be available.
While we don’t have a crystal ball at First Eagle, we do have a sense of current valuations and of the underlying vulnerabilities in the system. If the broader markets themselves are priced for low returns, investors who choose passive vehicles face the prospect of singularly disappointing returns over the long term.
This morning’s election results once again drove home the futility of human efforts to predict the future.
The United Kingdom’s vote to leave the European Union has already led to signficant turbulence in global currency and securities markets. Beyond this immediate reaction, we believe that political and economic uncertainty could continue for several years as the UK negotiates its new relationship with the EU.
In the past few years, gold and gold-mining stocks have been among the weakest performers in our Global Value and International Value strategies. Given the dramatic decline in some of these holdings, clients have questioned their presence in our portfolios. We believe that gold and gold-mining stocks continue to have a fundamental place in our Global Value and International Value strategies. We’ve organized this paper around the three major reasons for this conviction.
Kimball Brooker talks in depth about what First Eagle's Global Value team looks for when considering investments in holdings companies.
First Eagle's High Yield PMs discuss their approach to investing in a volatile market environment.
When risk is not defined in terms of permanent loss of capital, but rather in terms of deviation from a benchmark, the overall risk to investors increases.