Gold Investment Capabilities

First Eagle seeks to provide exposure to the investment characteristics of gold and, to a limited extent, other precious metals through our gold-oriented strategies. These strategies invest primarily in gold, gold related securities and issuers principally engaged in the gold industry.

Our Philosophy

We believe that a strategic allocation to gold may offer potential hedging, diversification and liquidity benefits. Actively managed gold exposure may help to mitigate concentration risk and capital impairment.
We employ a dynamic allocation focused on disciplined fundamental analysis and valuation. Our approach requires a temperament focused on: patience, humility and flexibility.
 

Capability Highlights

  • 07 longterm

    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
  • Consumer Icon

    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
  • 02 Integrity FPO

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

  • Max Belmont

    Associate Portfolio Manager, Senior Research Analyst

    Industry start:  
    2008
    Year joined:  
    2014
  • Thomas Kertsos

    Portfolio Manager and Senior Research Analyst

    Industry start:  
    2006
    Year joined:  
    2014

Our Process

The team emphasizes a fundamental bottom-up research approach that drives the identification of gold investment opportunities in all market environments.
We selectively utilize implementations options including physical gold and silver, gold mining companies and gold royalty companies.
We look at potential advantages and other considerations to determine allocations. Our exposures are dynamic and based on bottom-up, fundamental research.

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  1. Although First Eagle Investment Management, LLC has experience managing strategies involving gold and gold-related securities, the First Eagle Institutional Gold Strategy has limited operating history upon which investors can evaluate likely performance.

  1. Risk Disclosures

  2. 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.

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

  4. 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.