International Value
Strategy


Inception Date: SEP 01, 1993*

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.

*First Eagle acquired the International Value strategy from another firm on December 31, 1999. A previous portfolio manager was primarily responsible for managing the strategy at the prior firm.

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 region, sector, market cap and asset class without constraints of a benchmark. 

  • Multi-Globe

    Strategic Allocation to Gold and Cash

    Our flexible cash and cash equivalent allocation is a residual of equity selection; we hold gold as a potential hedge against market dislocations. 

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. Investment in gold and gold-related investments present certain risks and returns on gold related investments have traditionally been more volatile than investments in broader equity or debt markets.

  5. 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.

  6. Disclosures

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

  8. 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.

  9. Definitions

  10. “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.

  11. 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.

  12. Benchmark Definitions

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

  14. 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.

  15. 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.

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  • 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”. Additionally, the team has the flexibility to invest in non-equity securities, including cash and cash equivalents, corporate debt, short-term government bonds and gold.

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. 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. Investment in gold and gold-related investments present certain risks and returns on gold related investments have traditionally been more volatile than investments in broader equity or debt markets.

  5. 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.

  6. Disclosures

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

  8. 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.

  9. Definitions

  10. “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.

  11. 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.

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Annual Returns (%)

  1. Past performance is not indicative of future results

Trailing Returns (%)

Period: 01-Jan-2000 to 30-Sep-20223rd QtrYTD1 Year3 Year5 Year10 YearSince 1-Jan-2000
International Value (Gross) -8.64 -17.51 -15.30 -0.48 0.86 4.36 9.07
International Value (Net) -8.81 -17.98 -15.93 -1.22 0.10 3.58 8.25
MSCI EAFE Index (Net) -9.36 -27.09 -25.13 -1.83 -0.84 3.67 2.30
Excess Gross Return 0.72 9.58 9.83 1.36 1.69 0.69 6.76
Excess Net Return 0.55 9.12 9.20 0.61 0.94 -0.09 5.95
MSCI EAFE Value Index (Net) -10.21 -21.08 -20.16 -2.79 -2.74 2.39 2.57
  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
2021 111,364 16,422 8 6.10% 5.31% 11.26% 12.34% 16.92% 0.4%
2020 108,794 16,642 9 8.14% 7.33% 7.82% 12.60% 17.89% 0.4%
2019 96,434 16,202 11 18.90% 18.01% 22.01% 7.56% 10.81% 0.4%
2018 91,890 14,955 11 -9.29% -9.97% -13.79% 7.77% 11.24% 0.2%
2017 116,057 20,773 13 15.37% 14.51% 25.03% 8.14% 11.83% 0.3%
2016 99,086 17,114 12 6.70% 5.90% 1.00% 8.87% 12.46% 0.30%
2015 92,369 15,561 13 3.38% 2.61% -0.81% 8.27% 12.46% 0.20%
2014 99,470 16,006 11 0.22% -0.53% -4.90% 8.96% 13.03% 0.40%
2013 92,511 16,633 11 12.98% 12.14% 22.78% 10.25% 16.25% 0.007
2012 72,916 13,210 9 15.26% 14.40% 17.32% 11.87% 19.37% 0.003
2011 59,646 10,439 7 -4.53% -5.24% -12.14% 13.29% 22.43% N.A.
1 Year Ending 30-Sep-2022 -15.30% -15.93% -25.13%
3 Year Ending 30-Sep-2022 -0.48% -1.22% -1.83%
5 Year Ending 30-Sep-2022 0.86% 0.10% -0.84%
10 Year Ending 30-Sep-2022 4.36% 3.58% 3.67%
  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.