International Small Cap Value

Seeks to achieve attractive real returns over time while avoiding the permanent impairment of capital.

195 - ISCV Strategy-at-a-Glance footnote

*At the time of investment.

123 - Investment Restrictions and Guildelines

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

129 - Not an offer - Institutional

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.


The team believes there is a persistent market failure to recognize companies' intrinsic value. The team attempts to exploit this market failure through a bottom-up, fundamental, benchmark-agnostic investment approach.

Investment Process

The fundamental basis of the investment process — the identification of quality businesses based on in-depth, bottom-up research and investing in those businesses for the long-term — has remained constant since the formation of the Global Value team. The team looks for opportunities in companies that have temporarily disappointed investors; industries in turmoil or out of favor; and countries in economic downturns or overlooked by the market.

  • 1

    Analyze and Understand Business Models

    Thoroughly understand a company and the market in which it operates. The team's document-driven analysis examines:

    • A company's market share
    • The nature of its products and its business contingencies
    • Other critical factors.
  • 2

    Recast Financial Statements

    Financial statements are often recast because:

    • Conservative accounting practices can mask the true earnings power of a company
    • Likewise, accounting practices are sometimes too liberal

    Goal: To uncover a company's true economic earnings using only demonstrated results in order to make like comparisons among companies that may be presented quite differently on financial statements.

  • 3

    Calculate Intrinsic Value

    The team places great emphasis on:

    • Balance sheet valuation (such as Enterprise Value to Asset Replacement Value)
    • Cash flow valuation (such as EV/EBIT)

    Investments are made based on meaningful discounts to what we believe to be a company's intrinsic value.

  • 4

    Typically Invest for Long Term

    The team seeks its estimate of intrinsic value by determining a margin of safety in each holding. We view this margin of safety as a form of potential protection against uncertainty in a fundamentally unknowable future.


The International Small Cap Value strategy may also invest in non-equity securities, including corporate bonds (senior or subordinated bonds, convertible bonds), and cash and cash equivalents (commercial paper). These securities may be used defensively in an attempt to help avoid the permanent impairment of capital.


Competitive Advantages

  • Insistence on what we consider to be a margin of safety
  • Flexibility to invest without regard to a benchmark
  • Patient temperament
  • Willingness to take liquidity risk

The inception date of the strategy is 02/09/15. The International Small Cap Value strategy and related investment products are newly formed, with limited or no operating history.

This new strategy is the first managed by this portfolio management team at First Eagle Investment Management.

The Strategy will invest in companies with small market capitalizations, many of which are of a less seasoned nature and whose securities may be traded in the over-the-counter market. Small capitalization securities often involve significantly greater risks than the securities of larger, better-known companies. The stocks of such companies may be more volatile in price and have lower trading volumes than the stocks of companies with larger capitalizations.

The strategy may be subject to illiquid investment risk due to local market conditions or rules or position size. Reduced liquidity can limit the ability to sell investments when necessary to meet liquidity needs or in response to a specific economic event and will also generally lower the value of an investment.

There can be no assurance that the strategy will enter into any hedging arrangements or if it does so that such arrangements will be successful.

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.

Investments in emerging market equity securities may be subject to such additional risks as greater volatility, less liquidity and smaller capitalization of securities markets.

The 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.

All investments involve the risk of loss of principal.

For more information about the International Small Cap Value Strategy, please contact your relationship manager or Doug Meyer at 212.698.3013.

This is not an offer of any security.  Offers can only be made to qualified persons pursuant to a Confidential Offering Memorandum.

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Head of Institutional

Doug Meyer, CFA

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