US Smid Cap Opportunity Strategy

Inception Date: AUG 26, 2022

Seeks long-term growth of capital.

Investment Philosophy

The team seeks to invest in small and midcap companies that have become disconnected from their normalized valuations and have an identifiable catalyst for improvement. The Smid Cap strategy’s broad opportunity set promotes the potential for an attractive risk/return tradeoff and positions the team to capture the evolution of quality businesses as they grow.

Strategy Highlights

  • 07 longterm

    Transitional Company Focus

    The seasoned management team has deep experience identifying value in companies’ life cycles through all markets.

  • Team icon

    Catalyst-Driven Value

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

  • Brand

    Volatility Leads to Potential Opportunity

    The smid cap market may create attractive opportunities within security-level volatility due to short-and long-term dislocations in the market for disciplined active investors. It seeks to provide an enhanced risk/return trade-off by combining investment opportunities from both the small and midcap market segments.

Our Process

Our disciplined investment approach is executed by an experienced team, which is critical in an asset class where volatility and a lack of efficiency provide an opportunity for active investors.

  1. Risk Disclosures

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

  3. 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.

  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.

  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. The First Eagle U.S. Smid Cap Opportunity Strategy is new and may not be successful under all future market conditions. The Strategy may not attract sufficient assets to achieve investment, trading or other efficiencies.

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

  9. 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.

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