KEY DOCUMENTS & LITERATURE
Fact Sheet

Characteristics

  • As of Dec 31, 2023

  1. *Price/Earnings Ratio is calculated using weighted median method.

  2. **Active share measures the percentage of a fund’s portfolio holdings differing from its benchmark. Active share can range from 0% (index fund) to 100% (no commonality with the benchmark index).

Investment Philosophy

The team focuses on small and micro-cap companies with characteristics such as inefficiently valued assets, turnarounds, accelerating growth and overlooked leaders, that can potentially benefit from catalysts such as new management, a more favorable business cycle, product innovation, and/or margin improvement. The team believes fundamental research can uncover opportunities to invest in companies that are attractively valued and have the potential to benefit from catalysts for future earnings recovery.

  • True Small Cap Specialists

    The seasoned management team has deep experience leveraging opportunities offered by small and micro-cap companies across market cycles.

  • Catalyst-Driven Value

    The Small Cap Opportunity Fund employs in-house fundamental research in an effort to identify temporarily mispriced companies with potential catalysts for earnings-growth normalization.

  • Volatility Leads to Potential Opportunity

    Small cap market inefficiencies can create attractive opportunities for disciplined active investors, and broad portfolio diversification helps mitigate potential downside in a volatile investment universe.

     

KEY DOCUMENTS & LITERATURE
Fact Sheet

Characteristics

  • As of Dec 31, 2023

  1. *Price/Earnings Ratio is calculated using weighted median method.

  2. **Active share measures the percentage of a fund’s portfolio holdings differing from its benchmark. Active share can range from 0% (index fund) to 100% (no commonality with the benchmark index).

Our Process

The team uses a bottom-up process, building the portfolio stock by stock.

  • 01

    Narrow the Universe

    The team narrows the approximately 3,000 US Small Cap Stock Universe using their historical investment experience, by attending management meetings, conference calls, investment conferences, and by following industry trade journals.

  • 02

    Conduct Fundamental Research

    The team aims to identify companies that have low multiples and a potential catalyst for improvement.

    Low Multiples
    • The team seeks to uncover companies that they believe are trading at a significantly discounted price/book or price/sales.
    • Holdings typically fall into at least one category below:
      • Inefficiently valued assets
      • Turnarounds
      • Accelerating growth
      • Overlooked leaders

    Catalyst for Improvement
    • Utilizing the team’s analysis and deep institutional knowledge of competitors, industry and existing holdings used for comparisons, they seek to determine the likelihood of execution success.
    • Some potential catalysts the team looks for that could lead to a company’s return to normalized earnings are:
      • New management
      • More favorable business cycle
      • Margin improvement
      • Product innovation
  • 03

    Construct Portfolio

    • Diversified with approximately 180–300 holdings
    • Typical holdings less than $3bn market cap (at purchase)
    • Annual turnover expected 35%–45%

Competitive Advantage

  • Seasoned team of true small cap specialists
  • Time-tested, catalyst-driven value approach
  • Experience to find opportunity in short- and long-term dislocations due to volatility

Average Annual Returns

ClassYTD %1 YR3 YR5 YR10 YRINCEPT %Expense Ratio
Class 3   5.47%  16.30% -- -- --   4.33%   0.70%
Russell 2000 Value Index (since inception based on Class 3 Shares)   2.90%  18.75%   2.22%   8.17%   6.87%   3.91%
Class 1   5.43% -- -- -- --  29.15%   0.85%
Russell 2000 Value Index (since inception based on Class 3 Shares)   2.90%  18.75%   2.22%   8.17%   6.87%   3.91%

Source: FactSet; data as of Mar 31, 2024.

Source: FactSet; data as of Mar 31, 2024.

  1. Past Performance is not a guarantee of future results. The CIT's performance is presented as a total return based on the change in the CIT's daily net asset value, net of expenses, which primarily include audit, custody, fund accounting and investment advisory expenses. The CIT was established on the inception date indicated above. The CIT is not a mutual fund and is not registered as an investment company under the Investment Company Act of 1940, as amended. The CIT is not a deposit and is not guaranteed by the FDIC. As market conditions fluctuate, the investment return and principal value of the CIT's investments will change. Current performance may be higher or lower than what is presented above and is subject to change. Diversification may not protect against market risk. There are risks involved with investing, including possible loss of principal. The performance reflected is for a specific class, and other classes will differ due to different fee structures and other factors. Not all fee classes are available for investment by all plans. Fees vary across fee classes, and the net returns investors earn will differ from one fee class to another.

Allocation By Sector (%)

Industrials: 22.64%
Information Technology: 15.69%
Consumer Discretionary: 14.23%
Health Care: 10.99%
Materials: 9.46%
Financials: 9.21%
Energy: 5.73%
Short-Term, Cash & Cash Equivalents: 5.35%
Real Estate: 2.62%
Consumer Staples: 2.54%
Other: 1.55%
Source: FactSet; data as of Dec 31, 2023.
Industrials 22.64%
Information Technology 15.69%
Consumer Discretionary 14.23%
Health Care 10.99%
Materials 9.46%
Financials 9.21%
Energy 5.73%
Short-Term, Cash & Cash Equivalents 5.35%
Real Estate 2.62%
Consumer Staples 2.54%
Communication Services 0.95%
Utilities 0.60%
Industrials 23.84%
Information Technology 17.79%
Consumer Discretionary 12.74%
Health Care 11.69%
Materials 8.43%
Financials 7.23%
Energy 6.68%
Short-Term, Cash & Cash Equivalents 5.78%
Real Estate 2.28%
Consumer Staples 2.04%
Communication Services 0.93%
Utilities 0.55%
Industrials 24.09%
Information Technology 19.52%
Consumer Discretionary 16.90%
Health Care 10.95%
Energy 6.57%
Materials 6.45%
Financials 4.94%
Short-Term, Cash & Cash Equivalents 4.24%
Real Estate 2.47%
Consumer Staples 1.92%
Communication Services 1.47%
Utilities 0.48%
Industrials 23.98%
Information Technology 18.78%
Consumer Discretionary 16.82%
Health Care 11.04%
Energy 7.42%
Materials 6.54%
Short-Term, Cash & Cash Equivalents 4.83%
Financials 3.82%
Real Estate 3.42%
Consumer Staples 1.77%
Communication Services 1.56%
Industrials 22.80%
Information Technology 18.04%
Consumer Discretionary 17.32%
Health Care 11.96%
Energy 7.95%
Financials 5.89%
Materials 5.51%
Real Estate 4.30%
Short-Term, Cash & Cash Equivalents 3.06%
Communication Services 1.74%
Consumer Staples 1.44%
Industrials 20.93%
Consumer Discretionary 16.70%
Information Technology 14.93%
Health Care 12.41%
Energy 8.86%
Financials 7.11%
Short-Term, Cash & Cash Equivalents 6.86%
Real Estate 4.78%
Materials 4.28%
Communication Services 1.64%
Consumer Staples 1.50%

Allocation By Asset Class (%)

US Stocks: 94.66%
Short-Term, Cash & Cash Equivalents: 5.35%
Source: FactSet; data as of Dec 31, 2023.
US Stocks 94.66%
Short-Term, Cash & Cash Equivalents 5.35%
US Stocks 94.22%
Short-Term, Cash & Cash Equivalents 5.78%
US Stocks 95.76%
Short-Term, Cash & Cash Equivalents 4.24%
US Stocks 95.17%
Short-Term, Cash & Cash Equivalents 4.83%
US Stocks 96.94%
Short-Term, Cash & Cash Equivalents 3.06%
US Stocks 93.14%
Short-Term, Cash & Cash Equivalents 6.86%

  1. Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell securities. Based on total fair value of investment and cash/cash equivalents. Not a guarantee of future portfolio composition. Current and future portfolio holdings are subject to risk.

  2. Percentages may not sum to 100% due to rounding.

  3. Other Includes: Communications Services

Portfolio Management

  • Suzanne Franks Headshot

    Suzanne Franks

    Associate Portfolio Manager
    Industry start:  
    2004
    Year joined:  
    2021
  • Bill Hench Headshot

    Bill Hench

    Head of Small Cap Team and Portfolio Manager
    Industry start:  
    1992
    Year joined:  
    2021
  • Rob Kosowsky Headshot

    Rob Kosowsky

    Associate Portfolio Manager
    Industry start:  
    2002
    Year joined:  
    2021
  • Adam Mielnik Headshot

    Adam Mielnik

    Senior Research Analyst
    Industry start:  
    2014
    Year joined:  
    2021

Our Process

The team uses a bottom-up process, building the portfolio stock by stock.

  • 01

    Narrow the Universe

    The team narrows the approximately 3,000 US Small Cap Stock Universe using their historical investment experience, by attending management meetings, conference calls, investment conferences, and by following industry trade journals.

  • 02

    Conduct Fundamental Research

    The team aims to identify companies that have low multiples and a potential catalyst for improvement.

    Low Multiples
    • The team seeks to uncover companies that they believe are trading at a significantly discounted price/book or price/sales.
    • Holdings typically fall into at least one category below:
      • Inefficiently valued assets
      • Turnarounds
      • Accelerating growth
      • Overlooked leaders

    Catalyst for Improvement
    • Utilizing the team’s analysis and deep institutional knowledge of competitors, industry and existing holdings used for comparisons, they seek to determine the likelihood of execution success.
    • Some potential catalysts the team looks for that could lead to a company’s return to normalized earnings are:
      • New management
      • More favorable business cycle
      • Margin improvement
      • Product innovation
  • 03

    Construct Portfolio

    • Diversified with approximately 180–300 holdings
    • Typical holdings less than $3bn market cap (at purchase)
    • Annual turnover expected 35%–45%

Competitive Advantage

  • Seasoned team of true small cap specialists
  • Time-tested, catalyst-driven value approach
  • Experience to find opportunity in short- and long-term dislocations due to volatility

Literature

Product Information

Fact Sheet

  1. The First Eagle Small Cap Opportunity CIT is a collective trust fund established and maintained by Benefit Trust Company (BTC) under a declaration of trust. First Eagle Investment Management, LLC is the advisor to the trust. The trust is not registered with or required to file prospectuses or registration statements with the SEC or any other regulatory body, and accordingly, neither is available. The trust is available only to certain qualified retirement plans and governmental plans and is not offered to the general public. Units of the trust are not a bank deposit and not insured or guaranteed by any bank, government entity, the FDIC or any other type of deposit insurance. You should carefully consider the investment objectives, risk, charges, and expenses of the trusts before investing. BTC is a non-depositary trust company with operations in Overland Park, Kansas. As an independent fiduciary and fund sponsor, BTC maintains the trust and oversees all compliance related functions for the trust including trade monitoring, pricing, performance, annual reporting and investor eligibility.

    Risk Disclosures:
    The First Eagle Small Cap Opportunity CIT is new and may not be successful under all future market conditions. The First Eagle Small Cap Opportunity CIT may not attract sufficient assets to achieve investment, trading or other efficiencies. The value and liquidity of portfolio holdings may fluctuate in response to events specific to the companies or markets, as well as economic, political or social events in the United States or abroad. During periods of market volatility, the value of individual securities and other investments at times may decline significantly and rapidly. The securities of small and micro-size companies can be more volatile in price than those of larger companies and may be more difficult or expensive to trade. There are risks associated with investing in foreign investments (including depositary receipts). Foreign investments, which can be denominated in foreign currencies, are susceptible to less politically, economically and socially stable environments, fluctuations in the value of foreign currency and exchange rates, and adverse changes to government regulations.

    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. 

    Russell 2000® Value Index measures the performance of the large- cap value segment of the US equity universe. It includes those Russell. 2000 companies with relatively lower price-to-book ratios, lower I/B/E/S. forecast medium term (2 year) growth and lower sales per share historical.

    Indices are unmanaged and do not incur management fees or other operating expenses. One cannot invest directly in an index. 

    FEF Distributors, LLC (Member SIPC) distributes certain First Eagle products; it does not provide services to investors. As such, when FEF Distributors, LLC presents a strategy or product to an investor, FEF Distributors, LLC does not determine whether the investment is in the best interests of, or is suitable for, the investor. Investors should exercise their own judgment and/or consult with a financial professional prior to investing in any First Eagle strategy or product. 
    First Eagle Investments is the brand name for First Eagle Investment Management, LLC and its subsidiary investment advisers. 
     

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Contact Us

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1345 Avenue of the Americas

New York, NY 10105

212-698-3300

Portfolio characteristics are shown for illustrative purposes only and subject to change.

  1. The First Eagle Small Cap Opportunity CIT is a collective trust fund established and maintained by Benefit Trust Company (BTC) under a declaration of trust. First Eagle Investment Management, LLC is the advisor to the trust. The trust is not registered with or required to file prospectuses or registration statements with the SEC or any other regulatory body, and accordingly, neither is available. The trust is available only to certain qualified retirement plans and governmental plans and is not offered to the general public. Units of the trust are not a bank deposit and not insured or guaranteed by any bank, government entity, the FDIC or any other type of deposit insurance. You should carefully consider the investment objectives, risk, charges, and expenses of the trusts before investing. BTC is a non-depositary trust company with operations in Overland Park, Kansas. As an independent fiduciary and fund sponsor, BTC maintains the trust and oversees all compliance related functions for the trust including trade monitoring, pricing, performance, annual reporting and investor eligibility.

    Risk Disclosures:
    The First Eagle Small Cap Opportunity CIT is new and may not be successful under all future market conditions. The First Eagle Small Cap Opportunity CIT may not attract sufficient assets to achieve investment, trading or other efficiencies. The value and liquidity of portfolio holdings may fluctuate in response to events specific to the companies or markets, as well as economic, political or social events in the United States or abroad. During periods of market volatility, the value of individual securities and other investments at times may decline significantly and rapidly. The securities of small and micro-size companies can be more volatile in price than those of larger companies and may be more difficult or expensive to trade. There are risks associated with investing in foreign investments (including depositary receipts). Foreign investments, which can be denominated in foreign currencies, are susceptible to less politically, economically and socially stable environments, fluctuations in the value of foreign currency and exchange rates, and adverse changes to government regulations.

    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. 

    Russell 2000® Value Index measures the performance of the large- cap value segment of the US equity universe. It includes those Russell. 2000 companies with relatively lower price-to-book ratios, lower I/B/E/S. forecast medium term (2 year) growth and lower sales per share historical.

    Indices are unmanaged and do not incur management fees or other operating expenses. One cannot invest directly in an index. 

    FEF Distributors, LLC (Member SIPC) distributes certain First Eagle products; it does not provide services to investors. As such, when FEF Distributors, LLC presents a strategy or product to an investor, FEF Distributors, LLC does not determine whether the investment is in the best interests of, or is suitable for, the investor. Investors should exercise their own judgment and/or consult with a financial professional prior to investing in any First Eagle strategy or product. 
    First Eagle Investments is the brand name for First Eagle Investment Management, LLC and its subsidiary investment advisers. 
     

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  1. The First Eagle Funds are offered by FEF Distributors, LLC, a subsidiary of First Eagle Investment Management, LLC, which provides advisory services.

  2. Check the background of FEF Distributors, LLC (Member SIPC) on FINRA's BrokerCheck.