US Value Strategy


Inception Date: SEP 01, 2001

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

Investment Philosophy

The investment strategy looks for opportunities in companies exhibiting financial strength and stability, strong management and fundamental value.
  • 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

  • Insight Dollar Icon

    Absolute Return Mindset

    Dedication to mitigate downside risk. 

  • 08 flexible

    Flexible, Benchmark-Agnostic Approach

    Ability to invest across 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

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.”

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Investment Culture
  1. Risk Disclosures

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

  3. 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.

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

  7. 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.

  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.

  11. Benchmark Definitions

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

  13. Standard & Poor's 500 Index: Standard & Poor's 500 Index is a widely recognized unmanaged index including a representative sample of 500 leading companies in leading sectors of the U.S. economy and is not available for purchase. Although the Standard & Poor's 500 Index focuses on the large-cap segment of the market, with approximately 80% coverage of U.S. equities, it is also considered a proxy for the total market.

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  • Kimball Brooker Jr.

    Co-Head of Global Value Team and Portfolio Manager

    Industry start:  
    1992
    Year joined:  
    2009
  • Matthew Lamphier

    Portfolio Manager and Director of Research

    Industry start:  
    1994
    Year joined:  
    2007
  • Matthew McLennan

    Co-Head of Global Value Team and Portfolio Manager

    Industry start:  
    1991
    Year joined:  
    2008
  • Mark Wright

    Portfolio Manager and Senior Research Analyst

    Industry start:  
    1994
    Year joined:  
    2007

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. 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.

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

  7. 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.

  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.

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Annual Returns (%)

  1. Performance for 2001 is from September 1, 2001 to December 31, 2001.

  2. Past performance is not indicative of future results

Trailing Returns (%)

Period: 01-Sep-2001 to 30-Sep-20223rd QtrYTD1 Year3 Year5 Year10 YearSince Inception (Sep-2001)
US Value (Gross) -6.39 -15.56 -11.07 4.60 5.80 7.82 9.51
US Value (Net) -6.65 -16.26 -12.05 3.45 4.63 6.61 8.19
S&P 500 Index (Net) -4.88 -23.87 -15.47 8.16 9.24 11.70 7.70
Excess Gross Return -1.51 8.31 4.40 -3.56 -3.44 -3.89 1.81
Excess Net Return -1.77 7.61 3.42 -4.71 -4.61 -5.09 0.48
  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 NetS&P 500 (Net)3Y ex-post Std. Dev. Composite3Y ex-post Std. Dev. S&P 500Composite Dispersion
2021 111,364 1,272 Five or Fewer 20.32% 18.99% 28.71% 17.32% 20.02% N.A.
2020 88,512 1,200 Five or Fewer 7.97% 11.19% 18.40% 16.08% 18.53% N.A.
2019 96,434 1,555 Five or Fewer 20.89% 19.56% 31.49% 9.54% 11.93% N.A.
2018 91,890 1,614 Five or Fewer -4.59% -5.66% -4.38% 7.98% 10.80% N.A.
2017 116,057 2,103 Five or Fewer 14.29% 13.02% 21.83% 8.19% 9.92% N.A.
2016 99,086 2,247 Five or Fewer 16.45% 15.16% 11.96% 8.96% 10.59% N.A.
2015 92,369 2,272 Five or Fewer -4.22% -4.87% 1.38% 8.40% 10.47% N.A.
2014 99,470 3,338 Five or Fewer 10.09% 8.38% 13.69% 7.26% 8.97% N.A.
2013 92,511 3,383 Five or Fewer 18.65% 17.28% 32.39% 8.80% 11.94% N.A.
2012 72,916 3,011 Five or Fewer 12.28% 10.98% 16.00% 10.76% 15.09% N.A.
2011 59,646 2,149 Five or Fewer 7.25% 5.99% 2.11% 12.55% 18.71% N.A.
1 Year Ending 30-Sep-2022 -11.07% -12.05% -15.47%
3 Year Ending 30-Sep-2022 4.60% 3.45% 8.16%
5 Year Ending 30-Sep-2022 5.80% 4.63% 9.24%
10 Year Ending 30-Sep-2022 7.82% 6.61% 11.70%
  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. U.S. Value Composite contains fully discretionary US Value accounts invested primarily in U.S. Equities. For comparison purposes, the composite is measured against S&P 500 Index. The asset mix of the accounts in the composite may not be comparable to the S&P 500 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 reports are 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 descriptions, a list of limited distribution pooled fund descriptions, and a list of broad distribution pooled funds are available upon request.

    Results are based on fully discretionary accounts under management, including those accounts no longer with the firm.

    Derivatives may make up a material part of the composite strategy. The composite may invest in structured notes, the value of which is linked to the price of gold or silver to hedge against market conditions. The use of structured notes is subject to availability and market conditions. Structured notes are purchased through large commercial banks with strong credit ratings. The composite frequently uses currency forwards to hedge currency exposure.

    The annual composite dispersion presented is an equal-weighted standard deviation calculated for the accounts in the composite for the entire year. The 3-year ex-post standard deviation is calculated using gross returns.

    Past performance is not indicative of future results.

    The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of management fees and include the reinvestment of all income. Net of fee performance was calculated using a model management fee of 0.75% applied monthly. Actual returns will be reduced by investment advisory fees and other expenses that may be incurred in the management of the account. The investment management fee schedule is 0.75% on assets. Actual investment advisory fees incurred by clients may vary.

    The U.S. Value Composite was created September 4, 2001.

    Policies for valuing investments, calculating performance, and preparing GIPS Reports are available upon request.

  2. Risk Disclosures

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

  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. Benchmark Definitions

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