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.”

Image
Investment Culture

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.

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 31-Mar-20221st QtrYTD1 Year3 Year5 Year10 YearSince Inception (Sep-2001)
US Value (Gross) 2.51 2.51 14.89 13.26 10.98 10.26 10.79
US Value (Net) 2.22 2.22 13.63 12.00 9.76 9.03 9.45
S&P 500 Index (Net) -4.60 -4.60 15.65 18.92 15.99 14.64 9.08
Excess Gross Return 7.10 7.10 -0.75 -5.67 -5.01 -4.38 1.70
Excess Net Return 6.82 6.82 -2.02 -6.92 -6.23 -5.61 0.36

Disclosures

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
2020 108,794 1,200 Five or Fewer 7.97% 6.78% 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.
2010 51,961 1,430 Five or Fewer 13.88% 12.49% 15.06% N.A.
2009 38,910 1,086 Five or Fewer 26.69% 25.10% 26.46% N.A.
2008 31,605 683 Five or Fewer -21.93% -22.86% -37.00% N.A.
2007 43,879 654 Five or Fewer 10.49% 9.17% 5.50% N.A.
2006 43,089 581 Five or Fewer 14.02% 12.60% 15.79% N.A.
2005 35,210 357 Five or Fewer 8.82% 7.44% 4.91% N.A.
2004 26,315 165 Five or Fewer 16.58% 14.98% 10.88% N.A.
2003 15,481 119 Five or Fewer 32.17% 30.18% 28.68% N.A.
2002 6,703 69 Five or Fewer -0.93% -2.41% -22.10% N.A.
1-Sep-01 to 31-Dec-01 5,274 33 Five or Fewer 13.47% 12.90% 1.75% N.A.

Subscribe

Receive updates and articles of interest to you

Contact Us

  1. Disclosures

  2. 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-2019. The verification report is available upon request.

  3. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all of 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. Verification does not provide assurance on the accuracy of any specific performance report.

  4. 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.

  5. First Eagle Investment Management, LLC is an independent SEC registered investment adviser. The firm maintains a complete list and description of composites, which is available upon request.

  6. 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.

  1. Definitions

  2. “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.

  3. 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.

  4. One cannot invest directly in an index. Indices do not incur management fees or other operating expenses.

  5. 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.

  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. 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.