International Equity Strategy


Inception Date: JUL 1, 2022

Seeks to deliver attractive real returns while avoiding the permanent impairment of capital over time by using a value approach to investing in international equity markets.

Investment Philosophy

  • We believe that the market episodically fails to recognize, in our view, a company’s "intrinsic value;" we selectively invest when price presents what we believe to be an appropriate “margin of safety.”
  • We seek persistent businesses that embody asset scarcity, strong capital structures and corporate resilience.
  • Our fundamental, bottom-up approach requires a temperament focused on: patience, humility, and flexibility.
 

Strategy Highlights

  • Down side mitigation icon

    Absolute Return Mindset

    Dedication to mitigate downside risk.

  • 08 flexible

    Flexible, Benchmark-Agnostic Approach

    Ability to invest across sector, regions, and market cap without constraints of a benchmark.

  • Affiliation icon

    Demonstrated Stock Picking Ability of Team

    The Strategy will leverage the Global Value Team’s experience picking stocks.

Our Process

We identify companies for consideration when they exhibit specific characteristics such as: Scarcity. Durability. Persistence.

Image
Investment Culture

Our highly selective approach is focused on finding quality companies and then patiently waiting for that company to trade at what we view as an attractive price.

  1. Risk Disclosures

  2. All investments involve the risk of loss of principal.

  3. 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.

  4. A 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. “Value” investments, as a category, or entire industries or sectors associated with such investments, may lose favor with investors as compared to those that are more “growth” oriented.

  5. Disclosures

  6. The First Eagle International Equity strategy is new and has no historical track record.

    These are not investment guidelines or restrictions and will be subject to change. Actual portfolio will differ.

    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.

  7. Definitions

  8. “Intrinsic value” is based on our judgment of what a prudent and rational business buyer would pay in cash for all of the company in normal markets.

  9. 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.

  10. Benchmark Definitions

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

  12. MSCI EAFE: The MSCI EAFE Index is an unmanaged total return index, reported in U.S. dollars, based on share prices and reinvested net dividends of companies from 21 countries and is not available for purchase.

  13. MSCI EAFE Value: The MSCI EAFE Value Index captures large and mid cap securities exhibiting overall value style characteristics across Developed Markets countries around the world, excluding the US and Canada. The index provides total returns in US dollars with net dividends reinvested.

Show More Show Less

  • Alan Barr

    Portfolio Manager and Senior Research Analyst

    Industry start:  
    1990
    Year joined:  
    2001
  • Kimball Brooker Jr.

    Co-Head of Global Value Team and Portfolio Manager

    Industry start:  
    1992
    Year joined:  
    2009
  • Christian Heck

    Portfolio Manager, Associate Director of Research and Senior Research Analyst

    Industry start:  
    2011
    Year joined:  
    2013
  • Matthew McLennan

    Co-Head of Global Value Team and Portfolio Manager

    Industry start:  
    1991
    Year joined:  
    2008

Our Process

The investment team follows a bottom-up, fundamental approach, focusing on companies with businesses which it believes both exhibit sustainable profitability and are trading at significant discounts to their “Intrinsic Values.” 
 
Selective Participation
  • 01

    Scarcity

    We look for companies that exhibit scarcity through intangible and tangible assets associated with their businesses that may result in strong demand advantages and/or lasting supply advantages.

    We believe that scarcity of assets is the foundation of durability.

  • 02

    Durability

    Businesses with durability generally have long duration, scarce assets, strong capital structures and management with prudent mindsets.

    Scarce and durable assets overlaid with a strong capital structure and strong management teams may result in what we view as attractive companies that  potentially produce persistent earnings.

  • 03

    Persistence

    Once we have identified a company with demonstrated persistence, we look for the intersection of attractive price and timing to selectively participate.

  • 04

    “Margin of Safety”

    Buy and sell decisions are based on our estimates of a company’s “intrinsic value” and “margin of safety”—the difference between its market value and our estimate.


We seek to avoid companies with high valuations, high levels of leverage, “black box” balance sheets, vulnerable business models, and/or aggressive management behavior.

  1. Not all companies held in this strategy will meet the criteria listed.

  1. Risk Disclosures

  2. All investments involve the risk of loss of principal.

  3. 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.

  4. A 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. “Value” investments, as a category, or entire industries or sectors associated with such investments, may lose favor with investors as compared to those that are more “growth” oriented.

  5. Disclosures

  6. The First Eagle International Equity strategy is new and has no historical track record.

    These are not investment guidelines or restrictions and will be subject to change. Actual portfolio will differ.

    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.

  7. Not all companies held in this strategy will meet the criteria listed.

  8. Definitions

  9. “Intrinsic value” is based on our judgment of what a prudent and rational business buyer would pay in cash for all of the company in normal markets.

  10. 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.

Show More Show Less

Trailing Returns (%)

Period: 1-Jul-2022 to 30-Sep-2022Since Inception (Jul-2021)
International Value (Gross) -8.03
International Value (Net) -8.21
MSCI EAFE Index (Net) -9.36
Excess Gross Return 1.33
Excess Net Return 1.15
MSCI EAFE Value Index (Net) -10.21
  1. Past performance is not indicative of future results

GIPS Report

Year EndTotal Firm Assets (USD Millions)Composite Assets (USD Millions)Number of AccountsComposite GrossComposite NetMSCI EAFE (Net)3Y ex-post Std. Dev. Composite3Y ex-post Std. Dev. MSCI EAFEComposite Dispersion
1-Jul-22 to 30-Sep-22 93,889 213 Five or Fewer -8.03% -8.21% -9.36% N.A.
1 Year Ending 30-Sep-2022 N.A. N.A. N.A.
3 Year Ending 30-Sep-2022 N.A. N.A. N.A.
5 Year Ending 30-Sep-2022 N.A. N.A. N.A.
10 Year Ending 30-Sep-2022 N.A. N.A. N.A.
Since Inception 1-Jul-2022 -8.03% -8.21% -9.36%
  1. N.A. – Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year. Composite dispersion calculated using gross returns.

  1. International Equity Composite contains fully discretionary accounts invested in a range of asset classes from markets outside the United States. To achieve its objective, management will normally invest in common stocks (and securities convertible into common stocks) of foreign companies. For comparison purposes, the composite is measured against the MSCI EAFE (Net) Index. Returns include the effect of foreign currency exchange rates. The exchange rate source of the composite is Bloomberg 4 pm EST. The exchange rate source of the benchmark is Reuters 4 pm GMT. The asset mix of the accounts in the composite may not be comparable to the MSCI EAFE (Net) Index. Indices do not incur management fees or other operating expenses. Investments cannot be made directly into an index.

    Prior to 07-Dec-2009, First Eagle Investment Management, LLC was known as Arnhold and S. Bleichroeder Advisers, LLC.

    First Eagle Investment Management, LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. First Eagle Investment Management, LLC has been independently verified for the periods 01-Jan-1996 through 31-Dec-2020.

    A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm's policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. The verification is available upon request.

    GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

    First Eagle Investment Management, LLC is an independent SEC registered investment adviser. THL Credit Advisors was acquired and made a part of First Eagle Alternative Credit since Jan-2020. As of 01-Jan-2020, First Eagle Investment Management was redefined to include the Alternative Credit division. A list of composite descr