Gold

First Eagle Gold Strategy is a non-diversified strategy whose investment objective is to seek to provide exposure to the investment characteristics of gold and, to a limited extent, other precious metals. In seeking to achieve its objective, the strategy invests primarily in gold, gold related securities and issuers principally engaged in the gold industry.

Potential Hedge

Serves as a potential hedge against the consequences of catastrophic unforeseen events.

Seek Cheapest Ounces

Our goal is to purchase what we believe are the cheapest gold ounces whether below (miners) or above (bullion) ground. 

Do not forecast the price of gold

We do not attempt to predict the future price of gold.

The above are not investment guidelines or restrictions and are subject to change.

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.

*Inception date includes the time period prior to January 1, 2000 when the strategy was managed by a prior portfolio manager while he served as the portfolio manager at a firm different from First Eagle Investment Management.

Investment in gold and gold related investments present certain risks, including political and economic risks affecting the price of gold and other precious metals like changes in U.S. or foreign tax, currency or mining laws, increased environmental costs, international monetary and political policies, economic conditions within an individual country, trade imbalances and trade or currency restrictions between countries. The price of gold, in turn, is likely to affect the market prices of securities of companies mining or processing gold, and accordingly, the value of investments in such securities may also be affected. Gold related investments as a group have not performed as well as the stock market in general during periods when the U.S. dollar is strong, inflation is low and general economic conditions are stable. In addition, returns on gold related investments have traditionally been more volatile than investments in broader equity or debt markets. Investment in gold and gold related investments may be speculative and may be subject to greater price volatility than investments in other assets and types of companies.

Strategies whose investments are concentrated in a specific industry or sector may be subject to a higher degree of risk than strategiess whose investments are diversified and may not be suitable for all investors.

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. These risks may be more pronounced with respect to investments in emerging markets.

All investments involve the risk of loss of principal.

Philosophy

The First Eagle Gold strategy is a non-diversified strategy whose investment objective is to seek to provide exposure to the investment characteristics of gold and, to a limited extent, other precious metals. In seeking to achieve its objective, the strategy invests primarily in gold, gold related securities and issuers principally engaged in the gold industry.

Investment Process

  • 1

    Investable Universe

    The strategy invests primarily in gold, gold-related securities and issuers principally engaged in the gold industry.

  • 2

    Research Using Proprietary Model

    The team determines between investing in gold and investing in gold mining equities using a proprietary model.

    • This model provides a detailed framework for assessing a mining company's assets and is dependent on the company's proven and probable reserves
    • The team typically invests more heavily in companies already in production

    The team tends to discount other base metals that gold companies may mine because they view gold as a potential hedge.

    The team allocates capital to mining companies when they can find what they believe is a "margin of safety" that takes into account some of the risks surrounding mining, including:

    • Operational risk
    • Capital risk
    • Geopolitical risk

    Competitive Advantage

      Time Horizon

    • Philosophy does not attempt to time the market or speculate on prices
    • Long-term investment horizon is generally viewed favorably by company management teams
    • Patience for depth of research required for custom research around each mine – no two mines are alike
    • Experience

    • First Eagle has been investing in gold since 1979*
    • Investment team with deep experience in gold investing, including insights from sovereign research team
    • Long institutional memory and knowledge of industry dynamics
    • Scale

    • More than $10bn** in bullion holdings across various strategies; scale typically preferred in company management engagement
    • Tenure in market and team mindset helps to maintain preferred partnerships including custodian relationships.

*Prior to January 1, 2000, the Global Value strategy was managed by a prior portfolio manager while he served at a firm different from First Eagle Investment Management, LLC.

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.

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. These risks may be more pronounced with respect to investments in emerging markets.

**FEIM Analysis as of June 15, 2020.

Contact Us

Head of Institutional

Doug Meyer, CFA
doug.meyer@feim.com
212.698.3013

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